Anti-money laundering directive affects landlords

NetSpend, Wells Fargo And PayPal
NetSpend, Wells Fargo And PayPal

SAVILLS says all letting agents will fall within the regulated sector for anti-money laundering purposes when the fourth anti-money laundering (AML) directive is implemented next June.

Theresa Wallace, head of compliance and customer relations for Savills lettings, says: “The overall aim of this new directive is to combat money laundering and terrorist financing activities. At Savills we already undertake these checks as part of our due diligence, and while it can seem onerous and frustrating, it is something we are legally bound to do.”

Adrian Moody, head of Savills’ Henley lettings department, adds: “For landlords it is worth it because if a tenant gets caught money laundering, their funds will be frozen, resulting in no rent. By doing this due diligence, it reduces the possibility of letting your property to a money laundering tenant.

“The making of this directive into law further illustrates the additional responsibilities and complexities of the lettings industry as a whole and substantiates the necessity of using an ARLA-registered agent, from the perspective of both landlords and tenants.”

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