Letting Agents Risk Assessment

Lettings Agency Firm Wide Risk Assessment

PROP.AML.HV.01

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 and guidance.

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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