New research from client due diligence platform Thirdfort reveals that estate agencies’ compliance teams are experiencing an increased workload.
Some 40% of compliance leaders have reported feeling overwhelmed by their workload last year, while 34% work overtime weekly to manage anti-money laundering compliance issues.
Estate agencies face tough anti-money laundering compliance requirements. Money laundering costs the UK economy some £100bn annually, while the UK Government reportedly lost £21bn to fraud between 2020 and 2022, according to the National Audit Office.
The HMRC’s latest figures suggest that agents are failing to meet their regulatory obligations, resulting in fines and regulatory reprimands from the HMRC.
ANTI-MONEY LAUNDERING COMPLIANCE
Despite the increase in workload, the research by Thirdfort shows that 54% of compliance leaders say that the role of compliance is well understood within their agency. However, despite this, 32% expect their firm to decrease investments in anti-money laundering compliance compared to just 16% who expect to see it increase.
Olly Thornton-Berry, co-founder and CEO at Thirdfort, says: “With changes in regulation such as letting agents being deemed relevant firms under financial sanctions regulations, compliance teams face an increasing workload.
“While this report demonstrates how compliance professionals in estate agencies go above and beyond their responsibilities, it’s crucial for management to understand the role of compliance and invest in the tools that can help combat the increased threat of anti-money laundering in the UK.”
Thirdfort’s platform offers secure client due diligence checks for regulated professionals, through automated ID verification, anti-money laundering and Source of Funds checks on individuals and businesses in life’s big moments such as buying property, drafting a will or instructing a financial advisor.
