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Cameron says money laundering via property must stop
The National Association of Estate Agents has welcomed David Cameron’s commitment to take action on money laundering.
The NAEA also revealed that its own inquiry, following the From Russia With Cash programme on Channel 4, is under way.
The RICS would not comment on its own investigation.
Yesterday, the Prime Minister announced measures designed to unmask corrupt offshore company using the UK property market to hide their ‘dirty money’.
Cameron said that some properties in the UK are being bought with “plundered and laundered cash”.
He pledged a new system whereby the Land Registry will publish information on property owned by foreign companies.
There will also be a consultation on improving transparency.
In total, around £122bn worth of property in England and Wales is owned by offshore companies. More than 100,000 property titles are registered to overseas companies, including over 36,000 in London.
The recent C4 TV programme From Russia With Cash showed several agents, including NAEA and RICS members, apparently turning a blind eye to money laundering when dealing with an undercover reporter posing as a clearly dodgy Russian buyer.
Within hours of transmission of the programme, the NAEA said it would launch its own investigation.
A spokesperson for the NAEA said yesterday: “The NAEA inquiry has commenced and is moving forward as originally set out.
“We cannot comment any further at this stage as the investigation is still ongoing.”
NAEA managing director Mark Hayward said: “We do not tolerate the behaviour of any estate agents who are involved in money laundering within the UK property market, and agree with the Prime Minister that our property market should never be a place that facilitates corruption of any kind.
“All agents should report any activities of such nature to HMRC or the National Crime Agency, and failure to notify them, or to allow money laundering activities to knowingly take place, is a criminal act.
“Our members agree to abide by the professional standards that the NAEA has put in place, and we operate a range of sanctions to combat any breach of these strict standards.
“As a result of the recent From Russia with Cash documentary we are working closely with HMRC and the NCA in order to educate all of our members on the subject of money laundering, in order to fight against any such abuses in the UK property market.”
A spokesperson for the RICS said: “As the institution which represents over 120,000 surveyors globally, we are very concerned by the findings from the National Crime Agency.
“Money laundering through property is a problem which agents, solicitors and lenders must take seriously and we have issued clear Treasury-approved guidance on the responsibilities of estate agents in relation to Anti Money Laundering.
“RICS will investigate any complaint against an individual RICS member or firm and we are liaising with HMRC to ensure as close as possible cooperation in relation to specific cases.
“It is likely that in the near future RICS will play a more substantive role in overseeing compliance with AML legislation for its own members under the newly passed 4th European AML directive.”
http://www.propertyindustryeye.com/cameron-says-money-laundering-via-property-must-stop/
