There were an estimated 5.5 million anti-money laundering (AML) and identity checks conducted across the UK property market over the last year, new figures have revealed.

Identity verification service, Credas Technologies, also revealed that these checks have been conducted at a cost of £15.5m.

AML and identity checks have been a legal requirement since April 2018, when the European Parliament passed the Fifth Money Laundering Directive to prevent organised criminals from laundering money through the property sector.

Credas estimates that the average property transaction will see buyers and sellers undergo 5.4 checks, including an AML check, as well as identity checks for fake or stolen passports, identity and impersonation fraud, known as deceased, checks for Treasury sanctions, a Politically Exposed Person check, and also to see if they are subject to CCJs or personal insolvency. 

With over a million homes sold across the UK in the last year, this equates to an estimated 5.5 million checks carried out across the sector – assuming that all buyers and sellers are checked as the law prescribes. Based on the average cost per check, Credas estimated the total cost to the industry sat at £15.5m over the 12 months between October 2020 and September 2021.

“AML and identity checks are a reality of the world we live in and they go a long way in the fight against organised criminals, who have long targeted the UK property market in order to launder their ill-gotten gains,” said Credas Technologies CEO, Tim Barnett.

“However, they can be both time consuming and expensive for those working within the sector, who are already under extreme pressure due to the high volume of transactions that are taking place. 

“These factors have been the driving force behind the Credas proposition and we’ve been able to combine these checks into one quick and easy process, providing a low-cost, HMRC compliant option so that property professionals can carry out these requirements passively, rather than reactively. All while saving a considerable sum each year.”

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