AML fines issued are expected to increase in the estate agency sector

Research by Credas Technologies reveals that the average Anti-Money Laundering (AML) fine has increased by 63.7% in the estate agency sector. 

Although the fine has increased significantly, these fines are much lower than those in other sectors.

The average AML fine has increased in size by 19% in the past year across accountancy services, estate agency, money services, trust or company services, and high-value dealers. The fine has risen from an average £75,078 in 2020-21 to £89,372 in 2021-22. 

AML fine changes

The estate agency industry has seen fines go from £3,577 to £5,853 while the four remaining industries have seen a reduction

Fines for high value dealers have shrunk by -69.2%, accountancy is down -38.7%, and money services dropped by -29.5%. No change has yet been reported for Trust and Company Service Providers as records only started in 2021-22. 

Compared to these sectors, AML fees for estate agents are the second lowest with an average fine of £5,853. Those in accountancy have the lowest fee at £3,547. In contrast, money service providers could face a hefty £167,457. 

Credas Technologies predicts that the estate agency fee will hit £6,285 in 2022-23. That makes the estimated total in fines to pay £177,570. 

The leading identity verification checks provider also forecasts that the volume of AML fines issued to the estate agency sector is also set to drop in 2022/23. Therefore, while the average fine issued this year may increase, it is expected that there will be fewer fines in 2022/23.

Tim Barnett, chief executive officer of Credas Technologies, said: “On the face of it, an increase in the average AML fine issued to estate agents may seem like a backwards step, but when taken in context of where the sector was, we’re certainly moving in the right direction. 

“While the average fee may have increased, the total sum handed down in fines and the sheer volume of these fines is expected to fall substantially come the end of the 2022/23 financial year. At the same time, the severity of fines issued to the estate agency sector is extremely low when compared to many other sectors.”

“This suggests that those who do fall foul of AML sanctions are doing so accidently and due to a lack of awareness, rather than as the result of any intended illicit activities.’

In fact, the nation’s estate agents deserve praise for the manner and speed in which they have managed to get their AML ducks in a row at a time when the market has still been booming and they’ve been busier than ever, processing a record number of transactions and dealing with the practical fallout of a global pandemic.”