Countering financial crime professional standard

You must register with HMRC if your business carries out any work defined as estate agent activity in accordance with section 1 of the Estate Agents Act 1979 if you act:

• on instructions from a customer who wants to buy, sell or let an interest in land, in the UK or abroad
• to introduce your customer to a third party who wants to buy, sell or let an interest in land
• after such an introduction to secure the sale or purchase of the interest in land

The types of business that must register are:

• high street or online residential estate agencies
• commercial estate agencies
• property or land auctioneers
• land agents
• relocation agents, property finders, private acquisitions specialists
• a sub-agent providing estate agency services to a main estate agency business
• asset management businesses that also provide estate agency services
• business brokers or transfer agents brokering the sales or transfer of client businesses to third parties
• social housing associations that offer estate agency services
• letting or property management agents that offer estate agency services to landlord customers
• construction companies (residential property builders) with a sales office on-site, where they act or offer additional estate agency services other than the sale of their own construction properties

• Letting Agency work is defined in the MLRs as consisting of things done in response to instructions received from a prospective landlord seeking to find another person to let land/property or,
• a prospective tenant seeking to find land/property to rent, and where an agreement is made for the letting of land/property, for a term of at least one calendar month or more​. The rent must be or equivalent to a monthly rent of 10,000 Euro or more (or equivalent in another currency, such as GPB)​

The types of Letting Agency work that is captured in the MLRs:

• High street or online residential Letting Agency businesses​
• Commercial Letting Agency businesses​
• Land agents that also carry out Letting Agency work​
• A sub-agent that does Letting Agency work to a principle Letting Agency or Estate Agency business​
• Asset management businesses that also do Letting Agency work​
• Business brokers or transfer agents that broker a lettings agreement or arrangement such as the tenancy agreement​
• Social housing associations that do Letting Agency work ​
• Property management agents that also do Letting Agency work ​
• In Scotland, a solicitors’ property centre that also conducts Letting Agency work

There are exclusions set out in the MLRs which may mean that your lettings agency business is out of scope for AML supervision. This provides an exception for firms which are considered as engaging in financial activity on an occasional or very limited basis.​ In order to qualify for the exception, all seven criteria in must be met. ​Unless all the exemptions apply, you should register for supervision with HMRC and seek clarification from them direct if you are unsure.

• Recording, reviewing, analysing, calculating and reporting financial information.
• Producing client reports on financial accounts.
• Giving a customer specific tax advice, including advice on whether something is liable to a tax or duty.
• Providing material aid or assistance on someone’s tax affairs.
• Capital allowances computations – providing purely valuation advice in respect of capital allowances is not in scope of the money laundering regulations. However, advice on whether an asset is eligible for capital allowances, the calculation of capital allowances or advice on the tax relief that can be claimed on the asset falls within the definition of an Accountancy Service Provider and AML supervision is required.
  

• Acting as company secretary
• Acting as a director
• Providing registered office addresses

Valuation is not an activity covered by the money laundering regulations but any firm that provides material aid, assistance or advice on someone’s tax affairs, whether provided directly or through a third party, will need to register for AML supervision. This includes any specific tax advice given to clients, including completing and/or submitting tax returns, advice on whether something is liable to tax, or advice on the amount of tax due. This work is captured by the Money Laundering Regulations which cover accountancy, tax, and trust or company services. Any firm that needs to register for AML supervision for accountancy, tax or trust and company services should investigate whether they should register with a professional body supervisor or with HMRC. There are a number of professional bodies who act as the main AML supervisors for tax and accountancy professionals, and members of professional bodies should register for AML supervision with their professional body. HMRC is the default AML supervisor when no professional body supervisor is available Contact details for tax and accountancy professional supervisors, and HMRC is available here.  The Association of Tax Technicians has also provided advice for their members in relation to AML supervision of capital allowances advisers on their website here.