Estate agents face more AML costs as HMRC seeks £100m industry contribution

first_imgHome » News » Estate agents face more AML costs as HMRC seeks £100m industry contribution previous nextRegulation & LawEstate agents face more AML costs as HMRC seeks £100m industry contributionConsultation launched this week and due to close in October, will see property industry shoulder part of ‘cash grab’ by government to fund better AML effort.Nigel Lewis23rd July 20201 Comment2,831 Views Estate agents face further cost next year if HMRC decides to implement an ‘economic crime levy’ on Anti-Money Laundering (AML) regulated firms within the property industry.The details have been revealed after the government department announced a consultation on the proposal yesterday, which would affect regulated sectors covered by current AML legislation.It will be a big ask – the government wants to raise £100 million extra to fund the policing of its dirty money detection activities via the 90,000 regulated organisations who will be asked to contribute.This includes estate agents, letting agents, financial and credit institutions, legal services providers, accountants, trust or company service providers, money services businesses, casinos and dealers of high value goods.The consultation follows on from the government’s decision to increase its AML activities but says this will only be possible via contributions from both the private and public sectors.AML risksThe government also believes it is right that those who contribute towards the risks within the UK economy should ‘pay towards the costs of addressing those risks’.“To help sustainably fund those actions, and wider new government action to tackle money laundering, we will introduce a levy upon the AML-regulated sector,” the consultation says.“The government is of the view that a levy would provide the fairest and most simple method for the AML-regulated sector to contribute further.”After the consultation ends on 31st October 2020, the government intends to implement the new funding initiative by 2023.Agents are already charged £300 a year per branch AML renewal fees by HMRC.Read the consultation in full.estate agents money laundering HMRC AML anti money laundering July 23, 2020Nigel LewisOne commentKelvin Francis, Kelvin Francis Ltd. Kelvin Francis Ltd. 23rd July 2020 at 5:47 pmThat’s like asking the Police to pay for the cost of dealing with criminal activity. Agents have to take a great risk and go to a lot of extra trouble, (not compensated for) to ensure that money laundering doesn’t happen, with large fines if they miss anything, or are duped. For this pleasure, we already pay £300 and now are going to be asked to supplement Government’s responsibility to provide the machinery. Why not utilise some of the large taxes we contribute from VAT, NIC & PAYE, stamp duty, to tax on profits (for those able to make some).Log in to ReplyWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021last_img

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