Jacksons Est Ltd is committed to ensuring that it has adequate controls in place to fulfil its obligations to comply with the Money Laundering Regulations 2017, the Proceeds of Crime Act 2002, Terrorism Act 2000, Criminal Finances Act 2017, Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019, ISIL (Da’esh) and Al-Qaida (United Nations Sanctions) (EU Exit) Regulations 2019 and Counter-Terrorism (International Sanctions) (EU Exit) Regulations 2019), Sanctions and Anti Money Laundering Act (2018), Anti-terrorism, Crime and Security Act 2001 and the Counter-Terrorism Act 2008, Schedule 7.
Throughout the year we will be undertaking control sampling to ensure that the procedures outlined in this policy are being adhered to. As a minimum, these control checks will be undertaken on a quarterly basis with a report being prepared and filed with this policy.
Questions about the Money Laundering Regulations and/or the AML policy should be directed to the nominated MLRO or the AML Policy owner (see below).
| ROLES & RESPONSIBILITIES AML Policy Owner Carl Jackson Jacksons Est Ltd Alpine Lodge, 85 South Promenade, Lytham St Annes, FY8 1WD It is the responsibility of the policy owner to ensure that all staff are briefed on this legislation and our policy including all new starters and all staff on an annual basis. Money Laundering Reporting Officer (MLRO) Carl Jackson Jacksons Est Ltd Alpine Lodge, 85 South Promenade, Lytham St Annes, FY8 1WD The officer has responsibility to deal with any queries, to receive internal reports and to forward, where necessary, reports to the National Crime Agency. Attend compulsory training to ensure understanding of the Company’s approach to AML, the legislation and individual/company responsibilities (includes new starter, and annual refresher training). Carl Jackson Jacksons Est Ltd Alpine Lodge, 85 South Promenade, Lytham St Annes, FY8 1WD Report any suspicious activity or suspected suspicious activity to the nominated MLROs. Carl Jackson Jacksons Est Ltd Alpine Lodge, 85 South Promenade, Lytham St Annes, FY8 1WD |
PROCESS
The Directors of the Company have taken a risk-based approach to assess the risk of its customers/clients laundering money through its business. Although it is accepted that the majority of customers/clients will not launder money, we have identified criteria that would indicate a potential higher risk and, in these cases, will deploy enhanced customer/client due diligence checks. It is the policy of The Property Experts that all buyers and sellers will be subject to due diligence checks. In all cases marketing will not commence until we have completed due diligence checks, unless specific written approval from the nominated MLROs has been obtained. In these cases, outstanding documents will be chased over the following 21 days and if satisfactory documents not received within 28 days then marketing will be suspended.
STEP 1. RISK ASSESSMENT
The Anti-Money Laundering (AML) Risk Assessment Form for sellers and buyers should be used to carry out the initial risk assessment. This will help to determine whether the customer/client is high or low risk. In an instance where a customer or client is high risk then the MLRO and Policy Owner should be notified to decide if we should continue to engage in a business relationship with the customer or client. A high-risk status customer or client will be subject to a more vigorous identity check and due diligence process.
Risk Assessments are living documents and should be updated at each stage of the process to record any changes in the risk posed, for example, if a buyer refuses to provide proof of funds this would elevate them to a high risk and a decision will need to be made as to whether to continue with the business relationship.
By default, the automated process (as outlined below) should be followed using HIPLA. In instances where the HIPLA automated process cannot be used, please follow the manual HIPLA process.
STEP 2. VERIFICATION PROCESS
| Send an invite using the HIPLA ID / AML service for each buyer or seller requesting they upload either one or two forms of ID depending on their risk rating. See list of acceptable documents for each risk rating below. The listing agent and a member of the Administration team will check HIPLA to ensure the buyer or seller has completed the process. For sellers, the Agent must also ensure they have sent an invitation to complete the Digital Legal Pack. This will provide the Land Registry Title Deeds so we can confirm the legal owners of the property. Once all parts have been completed, the Agent must download all documents and upload them to the CRM system. Any matches/fails on the HIPLA report may elevate a client to a higher risk category and the agent with support from the Administration team must carry out additional due diligence, which must be evidenced on the CRM system. For full details on HIPLA reports and additional due diligence requirements see the HIPLA policy and procedure. Where a buyer or seller is identified as High Risk an email must be sent to the MLRO notifying them of the buyer or seller status. Additionally, the administrator will update our register of High-Risk buyers and sellers. Once we have achieved an AML pass status and (for sellers) positively confirmed the legal owners of a property, then we can engage in a business relationship. In some circumstances, for example, if a person is identified as a sanctions target or we believe the identity to be fraudulent it is not possible to enter into a business relationship. In these circumstances, the MLRO will be required to issue either a SAR or a report to OFSI and you must cease all business with this person without letting them know the reason why (tipping off). Copies of proof of identity should be taken for each buyer or seller (see list of acceptable documents below based on risk rating). These copies should be counter signed by the person that has seen the original including the date and time. Electronic copies should be uploaded to our CRM system Once we have captured counter signed copies of the original identification, we should run an external report for each individual to verify the identity, PEP status and International Sanctions Register. The results should be documented on our CRM system. Any matches/fails on the report may elevate a client to a higher risk category and the agent with support from the Administration team must carry out additional due diligence, which must be evidenced on the CRM system. Where a buyer or seller is identified as High Risk an email must be sent to the MLRO notifying them of the buyer or seller status. Additionally, the administrator will update our register of High-Risk buyers and sellers. Once we have achieved a pass status and (for sellers) positively confirmed the legal owners of a property, then we can engage in a business relationship. In some circumstances, for example, if a person is identified as a sanctions target or we believe the identity to be fraudulent it is not possible to enter into a business relationship. In these circumstances, the MLRO will be required to issue either a SAR or a report to OFSI and you must cease all business with this person without letting them know the reason why (tipping off). |
STEP 3. PROOF OF OWNERSHIP/ PROOF OF FUNDS
| Proof of Ownership Reasonable steps must be taken to satisfy ourselves that the seller, has legal ownership of the property and is entitled to instruct us. Proof of Ownership can be confirmed using the following: Land Registry title deeds Declaration or Deed of TrustDeath Certificate & WillDeed of VariationPower of Attorney Confirmation from a Solicitor (see reliance below for further action required) The most effective way to do this is through the HIPLA legal pack which will provide a copy of the title deeds, alternatively, you may: download and pay for the title deeds yourself from HM Land Registry;Obtain original Title Deed documents from your seller; orObtain evidence from a solicitor (see reliance below for further action required) Once we have achieved a KYC pass status and positively confirmed the legal owners of a property, then we can engage in a business relationship. | Proof of Funds All buyers must provide evidence of funds for the purchase price and stamp duty. Proof of funds must show that the funds are either held by the purchaser or there is an agreement in place to receive them (mortgage/gifted money etc) and must clearly show the source of funds. These can be in any of the following forms: An agreement in principle/decision in principle for mortgage. Memorandum of sale/completion statement (proceeds from sale)mortgage statement (equity release/proceeds from sale – mortgaged)Bank statements of deposit amount (for mortgage buyers)Bank statements of cash amount (for cash buyers)Further bank statements from past months/years to show how the money has built up over timeA gifted money letterEvidence of money being left in a willReceipts of shares being soldIn more unique circumstances a lottery win requires proof; gambling winnings require receipts/evidence of winnings. In all cases, proof of funds must be obtained prior to a memorandum of sale being issued. Where this is not feasible, specific written approval from the nominated MLROs must be obtained and satisfactory documentation will be chased, obtained and recorded on our CMS system prior to the exchange of contracts. Once we have achieved a KYC pass (Know Your Client) pass status and positively confirmed the proof of funds, then we can engage in a business relationship by accepting the offer and issuing the memorandum of sale. |
STEP 4. RECORD & DOCUMENT RESULTS ON AML RISK REGISTER
Once the process has been finished the Administration team member will update the high risk register with any buyer or seller that is identified as High Risk either from our risk assessment or as a result of the AML check. This is to be reviewed on a monthly basis by the MLRO/AML Policy Holder.
https://docs.google.com/spreadsheets/d/1LmrKpbKoeo7B6-N6HwpytreAZpAG4tg7c7o4I2EtoKA/edit?usp=sharing
LOW RISK DUE DILLIGENCE IDENTITY CHECK – ACCEPTABLE DOCUMENTS
A low risk customer or client is a situation where we have met the buyer or seller in person at their own property and in the instance of the seller the property being sold. The customer or client must have also passed The Property Experts AML Risk Assessment as a low risk. We will need one document which should show either the date of birth and the address of the owner / owners of the property. Below is a selection of the acceptable documents. The copy of the document that we retain must be clear and legible.
| Description Stipulations UK or EU Passport Must be valid – i.e. expiry date must not have passed UK Photo card Driving Licence – can be full or provisional Must be valid – i.e. expiry date must not have passed A National Identity Card Must be valid | |
HIGH RISK DUE DILLIGENCE IDENTITY CHECK – ACCEPTABLE DOCUMENTS
A buyer or seller that has been flagged as a high-risk status as a result of the AML risk assessment check will need to provide a minimum of two forms of identification. The first to verify identification and the second to verify address. The same document cannot be used to evidence both identification and address.
In an instance where we haven’t met the buyer or seller in person, we will need the documents to be countersigned by a professional person such as Solicitor, Doctor, MP, JP, Accountant, Tax Advisor or other professional body. The person verifying the document must state that
• They have seen the original document
• That it is a true copy of the original document
• That it is a true likeness of (state sellers name) (for name verification only)
• Signature of person verifying
• Full name of person verifying
• Profession of person verifying
• Details of firm/person providing verification
In addition, we must record the steps taken to verify the professional body providing the certification and save this to the persons record on the CRM system.
| Description | Stipulations | Evidence |
| Any document listed in Low Risk table above | ID or Address | |
| Non Photo card Driving Licence – FULL licence only | Must be valid – i.e. expiry date must not have passed | ID or address |
| State Benefit Letter | • Must be a letter issued by Government Body showing the entitlement to state benefit • Government body examples: Department of work and pensions, job centre, local authority • State Benefit examples; jobseekers allowance, housing benefit, maternity allowance, incapacity benefit, employment and support allowance, child benefit, disability living allowance, carers allowance, universal credit | ID or address |
| State Pension Letter | Must be a letter issues by Government Department of work and Pensions and show the entitlement to a state pension | ID or address |
| HMRC Tax Code Notification | This should be an official letter from HMRC – standard acceptable types are • Notification of tax code • Tax Calculation • Annual Tax Summary • Letter telling customer to complete a self-assessment return P45 and P60 documentation is not acceptable as they are produced by an Employer and not HMRC All documents must be dated within the last 12 months | ID or address |
| Tax or Pension Credit Letter | Must be a letter issued by Government body such as Department of work and Pensions, job centre, local authority or HMRC All documents must be dated within the last 12 months | ID or address |
| Recent Utility Bill | • i.e. water, gas, oil, electricity, landline phone, broadband • Mobile phone bills are not accepted • Date of issue must be within the last 3 months with the exception of Water bill which can be from the last 12 months NOTE: cannot be copies printed from the Internet | Address |
| Bank Statement | This can be a statement for the customers: • Current account • Credit card • Loan Account • Mortgage Account All should be dated within the last 3 months The document must have the Customers name and current address Copies printed from the internet Cannot be accepted | Address |
| Council tax bill | Must be dated within the last 12 months | Address |
| Building Society statement or passbook with printed address | • Statements must be dated within the last 3 months • Passbooks must have a transaction recorded within the last 3 months • Copies printed from the Internet Cannot be accepted • Passbooks and statements must have printed address details on • Passbooks must still be current (i.e. not for closed accounts) | Address |
| Local Authority Tenancy Agreement | Must be from Local Authority Agreement must be dated in last 12 months | Address |
KEY POINTS
| Politically Exposed Person (PEP) | Buyers or sellers identified as being a PEP will need to be referred to one of the nominated MLROs before proceeding further. A PEP is an individual whose prominent position in public life may make them vulnerable to corruption. The definition extends to immediate family members and known close associates. Refer to the full definition of a PEP in The Money Laundering regulations. All buyers or sellers confirmed as a PEP will be added to our High Risk Register and permission to enter into a business relationship must be sought from the MLRO. | ||
| Sanctions | If you think you have identified a client as a sanctions target then you must not deal with them or make any funds or assets available to them. You must immediately report this to the MLRO who must report it to OFSI as soon as practicable even if the individual has ‘tried’ to use your services. All business must be ceased and you must not tell the person why you are no longer able to do business with them (Tipping off). | ||
| Proliferation financing | Although the risk of being indirectly used for proliferation financing is low, care should be used when assessing whether a client is a sanctions target and if found to be then a OFSI report must be made as soon as practicable and the business relationship ended. | ||
| Reliance on third parties | We can accept shared checks from a third party if the following steps are undertaken: due diligence must be undertaken on the third party to ensure they are within a regulated industry (SRA for solicitors, FCA for financial advisors) and they are not subject to disciplinary action/adverse media;the third party must clearly state that they consent to us placing reliance on their information; we must obtain copies of the evidence the third party has used to complete their checks; and we must be satisfied that the evidence is sufficient to fulfil our AML obligations. The requestor remains liable, so if challenged we must provide our due diligence and why we believe the evidence is sufficient to meet our obligation. We can decline to accept third-party checks and insist on completing the checks ourselves, especially for high risk cases or cases where we are more concerned. | ||
| Tipping off | It is a criminal offence to “tip off” (i.e. inform) a person suspected of money laundering that (a) a lawful disclosure (i.e. a SAR) has been made or (b) there is a money laundering investigation taking place, where the tipping off is likely either to prejudice any investigation arising from the disclosure or to prejudice the investigation disclosed to the person suspected of money laundering. This offence carries a maximum penalty of five years imprisonment and/or an unlimited fine. | ||
| Suspicious Activity Reporting (or suspected) | refer to UK Financial Intelligence Unit (UKFIU) Guidance Signpost A report should be made to the nominated MLRO if you think there is a possibility that a buyer or seller is or has been engaged in money laundering or terrorist financing. This report, and any other information about the transaction must be kept totally confidential. Suspicious activity can be a ‘gut feeling’ but there are some triggers to be mindful of: o Reluctance to provide details of identity o Trying to use intermediaries to hide identity or involvement o No genuine reason to use your services o Property being sold at a price higher/lower than market value o Properties beings sold within a short time of purchase o Cash transaction is large and source of funds not disclosed | ||
| Buyers and sellers who are not private individuals | Company information will be required including registration number and registered address. A search will be undertaken at Companies House. Any shareholder who has a holding of 25% or more will be subject to the due diligence checks. | ||
| Overseas companies buying and selling property in the UK | Overseas companies who want to buy, sell or transfer property or land in the UK, must register with Companies House and provide information on who their registrable beneficial owners or managing officers are. In line with the Economic Crime (Transparency and Enforcement) Act 2022 agents must request the unique Overseas Entity ID and identify legal/beneficial ownership on all overseas entities and where the entity is not yet registered, remind sellers and buyers of the requirement to register on the ‘Register of Overseas Entities’. | ||
| The Financial Action Task Force (FATF) list of high-risk and other monitored jurisdictions (source: https://www.fatf-gafi.org/en/countries/black-and-grey-lists.html Feb 25 | Country | High-Risk Jurisdictions subject to a Call for Action (Black List) | Jurisdictions under Increased Monitoring (Grey List) |
| Algeria | X | ||
| Angola | X | ||
| Bulgaria | X | ||
| Burkina Faso | X | ||
| Cameroon | X | ||
| Côte d’Ivoire | X | ||
| Croatia | X | ||
| Democratic People’s Republic of Korea (DPRK) | X | ||
| Democratic Republic of the Congo | X | ||
| Haiti | X | ||
| Iran | X | ||
| Kenya | X | ||
| Lao People’s Democratic Republic | X | ||
| Lebanon | X | ||
| Mali | X | ||
| Monaco | X | ||
| Mozambique | X | ||
| Myanmar | X | ||
| Namibia | X | ||
| Nepal | X | ||
| Nigeria | X | ||
| South Africa | X | ||
| South Sudan | X | ||
| Syria | X | ||
| Tanzania | X | ||
| Venezuela | X | ||
| Vietnam | X | ||
| Yemen | X | ||
UK FINANCIAL INTELLIGENCE UNIT (UKFIU) GUIDANCE SIGNPOST
| Suspicious Activity Reports (SARs) guidance notes can be found on the NCA website by clicking on the UKFIU title on the NCA home page – www.nationalcrimeagency.gov.uk You can also follow the UKFIU on Twitter using the handle @NCA_UKFIU | |
| Useful reference documents | Estate and letting agency business guidance for money laundering supervision: https://www.gov.uk/government/publications/money-laundering-regulations-2007-supervision-of-estate-agency-businesses (Published 20 June 2014 Last updated 27 July 2022) HM Treasury Sanctions Notices, Guidance and News Releases: https://www.gov.uk/government/organisations/office-of-financial-sanctions-implementation • Further guidance and information across all of the UK sanctions framework: https://www.gov.uk/guidance/uk-sanctions SARs Annual Report 2018 • Guidance on Submitting Better Quality SARs v1.0 (September 2016) • SAR Glossary Codes and Reporting Routes v3.0 (January 2017) • Requesting a Defence under POCA and TACT v1.0 (July 2016) • Vulnerable Persons Reporting Routes v1.0 (November 2016) • SARs Reporter Booklet (February 2017) • DAML FAQ (May 2018) (can also be found via Google – ‘DAML FAQ’) |
| Anti-money laundering webinars | • HMCR webinar Estate Agency Business – what’s expected of you and how to do it https://register.gotowebinar.com/register/4906793162637996556 HMRC July 2018 https://www.gov.uk/guidance/help-and-support-for-anti-money-laundering • Law Society (England & Wales) March 2018 https://www.lawsociety.org.uk/support-services/advice/articles/suspiciousactivity-reporting/ |
| Useful contacts | • Defence Against Money Laundering (DAML) – all contact with the UKFIU DAML Team is via email: DAML@nca.x.gsi.gov.uk • Queries regarding SAR Online/general enquiries – Telephone: 0207 238 8282 – option 2 or 3. Email: ukfiusars@nca.x.gsi.gov.uk • Queries related to disclosures concerning terrorist financing – UKFIUTFT@nca.x.gsi.gov.uk • Feedback on guidance provided or ideas for the UKFIU magazine – ukfiufeedback@nca.x.gsi.gov.uk |