HM Revenue and Customs (HMRC) has fined a number of estate agents more than £500,000 for breaching anti-money laundering (AML) requirements.

The 68 estate agents were fined a total of £519,645 for not complying with rules designed to stop criminals from laundering money from illegal activity.

The fines followed the first prosecution of an estate agent for trading despite not registering with HMRC, to ensure compliance with money laundering regulations.

London-based Century House Estate director Felix Uwuigbe was sentenced to 120 hours of unpaid community service and banned from acting as an estate agent for 2 years after he was convicted of trading for three months while unregistered. 

HMRC deputy director of economic crime Nick Sharp says: “We are determined to create a level playing field for businesses who play by the rules. That means taking action against the minority of businesses who fail to fulfil their legal responsibilities under the money laundering regulations.”

“Money laundering is not a victimless crime. Our regulations are there to protect businesses from those criminals who would prey on their services to wash their dirty money.”

“Serious and organised crime costs the UK billions of pounds every year and our anti-money laundering supervision is a vital tool in combatting that.”

SmartSearch managing director Martin Cheek adds: “Once again, estate agents, unfortunately, find themselves in the spotlight for compliancy failures with 68 firms fined more than half-a-million pounds. This latest round of fines and ongoing pattern of non-compliance clearly shows the urgent need to improve standards in the sector.”

“It’s also a wake-up call to all regulated businesses with a total of 175 firms receiving fines totalling a hefty £2.1m.”

“As HMRC continues to take action against those who ignore their legal responsibilities, it almost becomes a question of when not if for those who lack fundamental AML processes. Without doubt, the case for digital onboarding, electronic verification and enhanced due diligence has never been so vital.”