Anti-Money Laundering

Introduction

At Fuller Gilbert, we are committed to maintaining the highest standards of integrity and compliance in all our operations. As a regulated estate agency in the UK, we adhere to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs), as amended by subsequent legislation, including the Economic Crime (Transparency and Enforcement) Act 2022. These regulations are designed to prevent money laundering and terrorist financing by ensuring that estate agents conduct thorough due diligence on their clients.

Customer Due Diligence (CDD)

In compliance with the MLRs, we are required to verify the identity of all clients and, where applicable, their beneficial owners. This process includes:

• Obtaining and verifying identification: We require one form of photo identification (e.g., passport or driving licence) and one proof of address (e.g., recent utility bill or bank statement dated within the last 3 months) for each individual involved in the transaction. If we have not met you in person, we will require certified copies of these documents.
• Beneficial ownership identification: We must identify and verify the beneficial owners of any legal entity involved in the transaction. A beneficial owner is defined as an individual who owns or controls more than 25% of the entity. If we are unable to identify the beneficial owner, we must identify and verify the senior person in the entity.
• Source of funds: In certain circumstances, we may request information regarding the source or destination of funds to ensure compliance with AML regulations.

Without this information, we will be unable to proceed with any work on your behalf.

Enhanced Sanctions Checks for Lettings

Effective from May 14, 2025, the UK government has extended financial sanctions reporting obligations to include all letting agents, removing the previous €10,000 (£8,300) rent threshold. This means that all rental agreements, regardless of value, are now subject to Anti-Money Laundering (AML) and financial sanctions checks.

As part of these enhanced obligations, we are required to:

• Conduct sanctions checks: Verify that all prospective tenants and landlords are not listed on the UK financial sanctions list before entering into any rental agreement.
• Report suspicions: If we know or have reasonable cause to suspect that a tenant or landlord is a designated person (i.e., subject to financial sanctions), we must report this to the Office of Financial Sanctions Implementation (OFSI) as soon as practicable.
• Disclose related assets: If a designated person is identified, we must disclose any related funds or assets held by us on their behalf.

These requirements apply to all lettings, including both residential and commercial properties, and encompass all parties involved, including tenants, landlords, and guarantors.

Verification Process

To facilitate the verification process, we utilise Credas (www.credas.com), a secure electronic identity verification service. An email and/or text message will be sent to each individual, prompting them to complete the verification process online.

Additional Requirements

Depending on your role in the transaction, additional documentation may be required:

• Probate: If you are acting as a personal representative of an estate, we will require the Grant of Probate or Letter of Administration, along with identification documents for the personal representative.
• Limited Companies: For corporate clients, we require the Certificate of Incorporation, Articles of Association, Memorandum of Association, and the latest annual return or confirmation statement, along with identification documents for all beneficial owners holding 25% or more of the shares or voting rights.
• Offshore Companies: For offshore entities, we require the Certificate of Incorporation, Articles of Association, Memorandum of Association, and the latest annual return or confirmation statement or Certificate of Incumbency, along with identification documents for all beneficial owners holding 25% or more of the shares or voting rights.
• Trusts: For trusts, we require the Trust Deed, a list of trustees and beneficiaries, and identification documents for all beneficial owners holding 25% or more of the capital or those who exercise control over the trust.

Enhanced Due Diligence (EDD)

In certain high-risk situations, we are required to conduct Enhanced Due Diligence. These situations include:

• Transactions involving high-risk third countries.
• Transactions that are complex or unusually large.
• Transactions with no apparent economic or legal purpose.
• Transactions involving politically exposed persons (PEPs).

In these cases, we will undertake additional checks and obtain further information to assess and mitigate the risks associated with the transaction.

Reporting Discrepancies

Under the MLRs, we are obligated to report any material discrepancies in beneficial ownership information to the relevant authorities. If we identify such discrepancies during our due diligence process, we will notify the appropriate regulatory bodies as required by law.

Ongoing Compliance

We are committed to maintaining up-to-date records and conducting regular reviews of our AML procedures to ensure ongoing compliance with all relevant regulations. This includes:

• Regular training for all staff on AML obligations and procedures.
• Implementing robust internal controls and monitoring systems.
• Keeping abreast of changes in legislation and best practices.

For more information on our AML policies or to discuss any concerns, please contact us directly. Your cooperation in providing the necessary documentation and information is essential in helping us maintain a secure and compliant environment for all our clients.