The Association of Residential Letting Agents says it will be issuing resources to support for lettings agents in the coming days as the EU Fifth Money Laundering Directive comes into force in the UK on January 10.
In a note issued just before the festive break, ARLA says the changes - included in the Money Laundering and Terrorist Financing (Amendments) Regulations 2019 - mean:
- letting agents must carry out customer due diligence on landlords and tenants where for a period of a month or more, and at a rent which during at least part of that period is, or is equivalent to, a monthly rent of 10,000 euros or more;
- where the customer is a legal person, trust, company, foundation or similar legal arrangement estate and letting agents must take reasonable measures to understand the ownership and control structure of that legal person, trust, company, foundation or similar legal arrangement;
- all letting agents must register with HM Revenue & Customs for AML supervision if they are dealing with monthly rent of 10,000 Euros or more. If agents are already registered with HMRC for sales business they need to advise of their lettings work too, however, there is no extra charge;
- enhanced due diligence measures must include: obtaining additional information on the customer and on the customer’s beneficial owner; additional information on the intended nature of the business relationship; information on the source of funds and source of wealth of the customer and of the customer’s beneficial owner; obtaining information on the reasons for the transactions.
“Propertymark is working to understand the changes and will be providing resources to members in the New Year” says the ARLA statement.