Professional body Propertymark has released a new position paper outlining crucial suggestions for the Government to incorporate into future legislation aimed at reducing economic crime in the property sector.
This initiative is spurred on by the recent introduction of the Economic Crime (Transparency and Enforcement) Act, enacted after Russia’s invasion of Ukraine. Also, the establishment of the Register of Overseas Entities and the UK Government’s Economic Crime Plan for 2023-2026 have heightened the focus on the property sector. All these measures are aimed at enhancing the UK’s reputation as a safe haven for legitimate businesses while effectively ousting illicit money from the country.
As Propertymark highlights, property agents hold a critical role in curbing economic crime. It is therefore essential that they implement effective measures to mitigate the risks of money laundering. However, the industry body asserts that more support is needed to help these professionals comply and reduce the property sector’s vulnerability to criminal activities.
The recommendations outlined in Propertymark’s position paper target improvements in six crucial areas: the UK property sector, compliance, supervision, enforcement, Suspicious Activity Reports, and the Register of Overseas Entities.
Previously, Propertymark had successfully campaigned for the creation of the Register of Overseas Entities and contributed to its development and usability with Companies House. The ultimate goal of the position paper is to reinforce the role of property agents in tackling economic crime and to influence future policy decisions.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “The proposals outlined in our position paper will help reduce economic crime in the property sector and ensure the UK isn’t used as a haven for criminal activity.” He emphasised the need for qualified and regulated professionals, a tailored supervision regime for the property sector, and increased support for agents in fulfilling their legal obligations and conducting appropriate checks.
To learn more, you can access Propertymark’s position paper, “Reducing Economic Crime in the Property Sector,” here.
