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AML check cost

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  • Anthear
    Anthear Posts: 224 Forumite
    Tenth Anniversary 100 Posts Name Dropper Combo Breaker
    BikingBud said:
    Anthear said:
    Anthear said:
    Agree 100% it is greedy - although they make a point of saying that other agents charge more - so they are more greedy ;-)

    What to do though??

    Explain to them that your solicitor is obliged to carry out AML checks and so can spare them the trouble.
    Apparently the agent is legal obliged to do the checks too.....
    Nope, unless you have the basis of the obligation. I determined they are not obliged to do the checks but to conduct a risk assessment.

    See this thread which stalled and no further discussion was provided. It might indicate it was a reasonable position, perhaps you might press to test with the EA and report back:
    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.

    But they will argue that by conducting these checks they are fulfilling a risk assessment.  I don't want to pay it but am coming up against a brick wall.

    I'll drop my solicitor a line and see what she says.
  • theartfullodger
    theartfullodger Posts: 15,690 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 6 February at 12:24PM
    Mention to them how powerful social media is .... And send them a bill for the same amount .

    Ask where this fee is mentioned in their website/documentation.  

    If still unsuccessful due them small claims... It'll cost them more to handle that 


  • BikingBud
    BikingBud Posts: 2,530 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Anthear said:
    BikingBud said:
    Anthear said:
    Anthear said:
    Agree 100% it is greedy - although they make a point of saying that other agents charge more - so they are more greedy ;-)

    What to do though??

    Explain to them that your solicitor is obliged to carry out AML checks and so can spare them the trouble.
    Apparently the agent is legal obliged to do the checks too.....
    Nope, unless you have the basis of the obligation. I determined they are not obliged to do the checks but to conduct a risk assessment.

    See this thread which stalled and no further discussion was provided. It might indicate it was a reasonable position, perhaps you might press to test with the EA and report back:
    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.

    But they will argue that by conducting these checks they are fulfilling a risk assessment.  I don't want to pay it but am coming up against a brick wall.

    I'll drop my solicitor a line and see what she says.
    No undertaking a risk assessment is a precursor for any action. Conducting the checks is to mitigate any perceived risk. At the moment they have not communicated what the risk is. I copy the important aspect here for ease of reference:
    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.
    By asking to see their policy they should also show you how they have determined that you present a certain risk characteristic and what that risk is.

    Else they're just money grabbing.
  • marcia_
    marcia_ Posts: 3,396 Forumite
    Sixth Anniversary 1,000 Posts Photogenic Name Dropper
     I would drop the vendor a message. They might not be impressed the agent is putting their sale at risk. 
  • AskAsk
    AskAsk Posts: 3,048 Forumite
    1,000 Posts Fourth Anniversary Name Dropper Photogenic
    if you are interested in the property then i would just pay it.  in the context of the cost of the purchase, it is small potato but it does seem mean.

    i have heard people post this before on this board and he was charged 2 x £55 as it was a couple.
  • AskAsk
    AskAsk Posts: 3,048 Forumite
    1,000 Posts Fourth Anniversary Name Dropper Photogenic
    edited 6 February at 12:53PM
    Anthear said:
    Anthear said:
    Agree 100% it is greedy - although they make a point of saying that other agents charge more - so they are more greedy ;-)

    What to do though??

    Explain to them that your solicitor is obliged to carry out AML checks and so can spare them the trouble.
    Apparently the agent is legal obliged to do the checks too.....
    this is true but my EA says he relies on the solicitors doing it and that is his get out clause.  another agent says they need to do the ID checks for ALM but he isn't charging me as the seller, although he is charging a lot in commission already so that is probably why!  would be interesting to see if they charge the buyers that fee.
  • BikingBud
    BikingBud Posts: 2,530 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    AskAsk said:
    Anthear said:
    Anthear said:
    Agree 100% it is greedy - although they make a point of saying that other agents charge more - so they are more greedy ;-)

    What to do though??

    Explain to them that your solicitor is obliged to carry out AML checks and so can spare them the trouble.
    Apparently the agent is legal obliged to do the checks too.....
    this is true but my EA says he relies on the solicitors doing it and that is his get out clause.  another agent says they need to do the ID checks for ALM but he isn't charging me as the seller, although he is charging a lot in commission already so that is probably why!  would be interesting to see if they charge the buyers that fee.
    Please provide the reference for the legal obligation.
  • Bobbityboo
    Bobbityboo Posts: 18 Forumite
    10 Posts
    We paid it to our sellers EA.  We queried it as obviously our solicitor checks our ID.  Didn’t really get a clear answer and it was just not going anywhere. We want the house, so paid to get things moving along (hoping to beat the stamp duty increase). We were charged £40 total for 2 people.  
  • Anthear
    Anthear Posts: 224 Forumite
    Tenth Anniversary 100 Posts Name Dropper Combo Breaker
    They are not budging and the company they use to do the checks will not deal direct with me.  Asking my solicitor what the score is and whether the checks they do would cover me but I suspect the Agent will dig their heels in.
  • DullGreyGuy
    DullGreyGuy Posts: 18,544 Forumite
    10,000 Posts Second Anniversary Name Dropper
    BikingBud said:
    AskAsk said:
    Anthear said:
    Anthear said:
    Agree 100% it is greedy - although they make a point of saying that other agents charge more - so they are more greedy ;-)

    What to do though??

    Explain to them that your solicitor is obliged to carry out AML checks and so can spare them the trouble.
    Apparently the agent is legal obliged to do the checks too.....
    this is true but my EA says he relies on the solicitors doing it and that is his get out clause.  another agent says they need to do the ID checks for ALM but he isn't charging me as the seller, although he is charging a lot in commission already so that is probably why!  would be interesting to see if they charge the buyers that fee.
    Please provide the reference for the legal obligation.
    To be part of the PropertyMark scheme they state their members must do AML checks on buyers, similarly various property law firms state an estate agent must do them "by law" without stating which law this is. One site mentioned MLR 2017 as the source of the requirement. 

    If they charge for doing this or not is naturally a separate matter. There will be more than one aspect of the charges though... the search for a single individual is probably c£5 but they must be registered with HMRC, the people performing the check must be appropriately trained, costs of records retention etc which all have to be paid for by someone even if its not a per-transaction fee. 
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