Letting agencies and the Money Laundering Regulations
HMRC is responsible for the money laundering supervision of certain businesses including letting agencies. Businesses that HMRC is responsible for supervising should be aware of the requirement to register with HMRC and the penalties for failing to register. It is a criminal offence to trade as a letting agency business (as defined within the Regulations) without being registered for money laundering supervision.
You may need to register with HMRC if your business operates as a letting agency business.
A letting agency business means a firm or sole practitioner whose work consists of things done in response to instructions received from a:
- prospective landlord seeking to find another person to let land to,
- prospective tenant seeking to find land to rent.
This is for a term of a month or more and over €10,000 per month. This covers both residential and commercial property lettings.
A lettings agent carrying out lettings activity not defined within the Regulations, for example, below €10,000 per month, is not required to register.
There are penalties for not registering in a timely manner. If you think you should have been registered or need further clarification, we would be happy to help.