This Template Lettings Agency Firm Wide Risk Assessment is for use by
Residential Letting Agents dealing with high value lettings (at a monthly
rent of 10,000 euros or more) to assess the risks of money laundering and
terrorism financing to which its business may be subject.
Under The Money Laundering, Terrorist Financing and Transfer of Funds
(Information on the Payer) Regulations 2017 as amended by The Money
Laundering and Terrorist Financing (Amendment) Regulations 2019 (‘the
Regulations’) from the 10 January 2020, letting agents dealing with high
value lettings must have a risk assessment in place. The risk assessment
must be in writing and subject to annual review. HMRC (the supervising
authority for letting agents dealing with high value lets) can request a
copy of this risk assessment which you must provide to them.
Letting agents who are caught by the Regulations are required to gather
information in order to prepare their risk assessment. For example, agents
may review old files or discuss risks with staff or ask staff to complete a
questionnaire. How and what information is gathered must be recorded and
provided to HMRC upon request.
Letting agents caught by the Regulations must consider the risk factors
that their own business may be exposed to and identify these in their
assessment. This Template has a list of risks which letting agents are
likely to be exposed to. The list is not exhaustive. You must tailor these
to your specific business and expand on the risks where relevant.
As a regulated business you must read the Regulations and HMRC guidance to
ensure that you are complying fully with the legislation. This template
Lettings Agency Firm Wide Risk Assessment is intended as a starting point
to assist you in implementing the requirements set out in the Regulations
Guidance from HMRC on the money laundering regulations can be accessed
here. We expect HMRC will produce specific guidance for letting agents
on money laundering supervision in due course but at the time of writing this
has not yet been published.
Failure to comply with the Regulations can result in civil penalties or
criminal prosecution. Senior managers and nominated officers can also be
found personally liable for a breach of the Regulations. If you are unsure
as to the risks your business may be exposed to or how to complete this
template, you should seek professional advice.
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