EA asking buyer to pay for ID/AML checks

BikingBud

SadieO said:

Robbo66 said:

Angepet said:

We've just bought and simply provided EA with ID and bank statements at no charge. Solicitor did checks via credas for which we were charged. Be better if this was uniform across yhe industry.

Then the agent you bought from didn't do as the legislation requires, simply taking copies of bank statements and I.D isn't doing an AML check. Not doing it correctly can mean huge fines. Have a look at this article it explains the actual process agents need to follow  
https://www.estateagenttoday.co.uk/features/2022/2/insight--an-estate-agents-guide-to-aml

How do you know the agent didn't go through that process? From the article it seems that the agent needs to run the buyer's details through various checks, which they would do once they had recieved their ID and bank statements. Unless I am missing something there is nothing to suggest due process wasn't followed, it's just that the agent might not have actually informed the buyer that they were doing so??

To resurrect an earlier post but pertinent to the discussion, the guidance provided by a trade body is not legislation!

The HMRC guidance provides:

Risk based approach 
5.1   A risk-based approach is where you assess the risks that your business could be used for money laundering, terrorist financing or proliferation financing and put in place appropriate measures to mitigate those risks. A risk-based approach should balance the costs to your business and customers with a realistic assessment of the risk that criminals may exploit the business for money laundering, terrorist financing and proliferation financing. It allows you to focus your efforts on the areas of highest risk areas and reduce unnecessary burdens.

and

5.19   You must also show how you will: 

- carry out customer due diligence checks and conduct ongoing monitoring 

5.20   The following actions are also required to be covered within your policies, controls and procedures and must be kept under regular review: 

- ensure identification and acceptance procedures reflect the risk characteristics of all clients.

5.45   Procedures should be easily accessible to staff and detailed enough to allow staff to understand and follow them easily. They must include as a minimum: 

- the types of clients and transactions that you consider to be lower risk and why they may qualify for simplified due diligence and those that are higher risk and merit closer scrutiny 

Without reading the whole 197 page document it would appear that they are not obliged to complete AML checks but to carry out risk assessments, including determining which clients might be lower risk, due diligence only and higher risk, merit closer scrutiny.

Hence, using the information provided by the solicitor is perfectly acceptable, reduces duplication, reduces cost and also reduces risk of differing assessment leading to stalled progress.

Ask to see their AML policy.