Almost 200 estate and lettings agents have been fined by HMRC for anti-money laundering (AML) failings, latest figures have revealed, making it the most heavily sanctioned sector falling under the Money Laundering Regulations.
Data published by HMRC at the end of June (26 June 2025), shows that a total of 336 penalties were issued to businesses that should have been registered for AML with HMRC between 1 October 2024 and 31 March 2025, with 194 fines given to estate agencies.
Fines issued during this period had a total value of more than £3.2m, with those imposed on estate agents reaching a combined total of £1.09m.
Individual fines ranged from £1,250 up to £27,000. Most of the fines were for trading while unregistered.
For the full list of businesses that have not complied with the money laundering regulations, see GOV.UK by clicking here.
Estate agency is a regulated activity, and agents must comply with the Money Laundering Regulations 2017, enforced by HMRC, or run the risk of fines or prosecution.
Some of the main AML checks estate agents must undertake include:
- Registering with HMRC. Businesses that carry out estate agent activity as defined under section 1 of the Estate Agents Act 1979 must register with HMRC.
- Undertaking Customer due diligence (CDD) to ensure buyers and sellers are who they say they are.
- Verification of funds. Estate agents must check proof of funds and verify the source of funds used in property transactions.
- Policy statement. All regulated businesses, including estate agents, must produce, maintain and update a policy statement that stipulates their money-laundering controls and procedures proportionate to their risk.
- Staff training. Estate agents need to take the appropriate steps to ensure employees know the law relating to money laundering and that they are aware of their responsibilities.
More stringent AML compliance requirements were introduced on the estate agency sector from 14 May 2024.
These new regulations require all lettings agents in the country to complete UK Financial Sanctions checks and report any suspected breaches to HM Treasury’s Office of Financial Sanctions Implementation (OFSI).
Read more here.
AML Compliance for Estate Agents
It is crucial to remember that the AML regulations apply to estate agents.
At the Regulation and Compliance Office (RACO), we work with estate agents of all sizes, whether they are independent, a franchise or a chain, to establish an efficient AML strategy tailored to suit your needs.
Our services are specifically designed to facilitate effective management of a compliance structure that works, covering:
- Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) compliance.
- GDPR and Data Protection compliance.
- Bribery Act 2010 compliance.
- Complaint investigations, management and handling.
- Treating Customers Fairly compliance.
- Employment Regulations compliance.
All agents must register with HMRC for AML purposes. If you have not made your application, we will work with you to submit and obtain approval.
Estate agents need to ensure they stay on top of the new regulatory requirements that are currently being rolled out in the sector. As these regulations come into force, RACO will develop strategies with estate agencies to ensure they can obtain and maintain the necessary authorisation.
When you have approval, we will help you retain your approval status and protect your agency.
For more information about how we work with Estate Agents, please review our Services Page.
If you would like to discuss our services in more detail, please call us at 0203 985 8550 or email us at info@regulationandcomplianceoffice.co.uk
