Letting agents to be exempted from money laundering laws

News Category: Legal

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Letting agents are to be made exempt from the 2007 Money Laundering Regulations after discussions between the government and Rics.

The industry body has negotiated the agreement with the Treasury after recent EU legislation had looked set to bring letting agents and those in charge of property management into the regulated sector.

Rics argued that such a move would mean that agents would become subject to unnecessary legal checks and registration, despite the fact that they will not necessarily ever be involved in handling clients' money.

As a result, it was able to successfully argue that the regulations have "very little relevance" to letting agent activity, prompting the exemption from the government.

Steven Gould, director of regulation for Rics, hailed the decision, saying: "Rics is keen to see the residential market regulated properly, but it is also vigilant against over-regulation. Thankfully on this occasion the government has been clear-sighted."

Rics also announced this week that it has allied with Arla and the National Association of Estate Agents to create the Property Standards Board, a new body designed to provide better regulation over the private lettings sector.

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