AML Supervision: Is Your Sourcing Business Risking a Fine From HMRC?

Through NAPSA - The National Association for Professional Sourcing Agents - we have researched and written findings this week on HMRC's fines issued to sourcing agents between April and September last year. 

The findings are really quite staggering considering as a sector, we are seen as 'small fry'!

In total, 35 sourcing agents / businesses were fined a combined £150k during those 6 months - all for failing to register in an appropriate time for anti-money laundering (AML) supervision. 

One sourcing business was fined £23,400!

Some of these of course included more than just failing to register, however with the minimum fine starting at £1,450 - is it really worth the risk when registering costs approx. £340?

You can read more about the findings, including the fines issued and reasoning here: https://napsa.org.uk/hmrc-aml-fines-sourcing/

All Property Businesses Need to Register

If you are operating a sourcing business - Ltd or Sole Trader (deal sourcing, finder, packager) the rules still apply to you. Your business MUST be registered with HMRC for AML Supervision.

HMRC have been able to find businesses registered under different SIC codes (not the correct one 68310), as well as sole traders not registered on Companies House at all. 

We don't know the specific 'appropriate' time frame you have to register your business once set up on Companies House, however we would highly advise you do this within 30 days. The longer you leave it, the bigger the fine - especially if you've traded - which is why some sourcing agents have been give fines above £10k. 

Not Set Up Your Business?

Please do not register for AML Supervision UNTIL you have all of your compliance in place. This is vitally important.

You are at an advantage if reading this to not make the same mistake that other agents make - and unfortunately is taught on many training courses. 

If you want to know more of what you need to have, please click here: https://www.getpropertycompliant.co.uk/property-sourcer-programme-napsa

Concerned about your business? You can: 

Email NAPSA Team at: [email protected]

Book a Free Call: https://professionalsourcingcompliance.as.me/schedule.php?appointmentType=62764886

If you have registered with Companies House and not HMRC, we recommend you act fast to get your compliance in place.