Government consult on extending AML rules to lettings
The Government have launched a consultation on extending the anti-money laundering rules to cover letting agents as set out in the Fifth Money Laundering Directive (5MLD).
Under 5MLD, the scope of obliged entities within the property sector is expanded to include the letting agency sector for high value transactions with a monthly rent of 10,000 Euros or more.
Why is this happening?
The 5MLD, which was passed in June 2018 makes amendments to the Fourth Money Laundering Directive (4MLD) which came into force on 26 June 2017.
The latest Directive contains amendments to 4MLD with the aim of improving transparency and the existing preventative framework to more effectively counter money laundering and terrorist financing across the European Union.
The requirements of 5MLD must come into effect through UK law by 10 January 2020.