HMRC Issues 170 Penalties to Property Agents Over Money Laundering Breaches
- Sean McMahon
- 5 days ago
- 2 min read
HMRC has recently published a list of approximately 170 penalties issued to property agents for breaches of money laundering regulations, highlighting ongoing compliance failures within parts of the property sector.
According to HMRC, a total of 369 penalties were issued across multiple industries, with a combined value of £1,881,237. Of these, estate agents accounted for 170 penalties, totalling £835,842, while accountancy service providers received 134 penalties amounting to £513,930. Further penalties were issued to money service businesses and other organisations, with total fines exceeding £500,000 across remaining categories.
A number of well-known industry names appear on the list, including RentGuarantor, Letwise, and the Tenancy Deposit Scheme, underlining that compliance failures are not limited to smaller operators. The majority of penalties were issued for trading while unregistered under the Money Laundering Regulations — a fundamental requirement for any agent involved in property sales or lettings.
HMRC also confirmed that some businesses received a reduced penalty after voluntarily approaching HMRC to disclose errors, reinforcing the importance of proactive compliance rather than reactive damage control.
👉 The full list can be viewed here:
Our Approach: Zero Compromise on Compliance
At The Property Experts / The Letting Experts, compliance is not an afterthought — it is built into every transaction we handle.
We operate a strict Anti-Money Laundering (AML) policy, with three-stage verification checks carried out on every transaction, without exception. These checks are independently verified, internally audited, and continuously monitored to ensure full alignment with HMRC regulations and industry best practice.
This three-fold approach dramatically reduces risk for our clients and ensures that every sale, purchase or tenancy we handle is compliant, traceable and protected.
One of the Safest Client Money Systems in the UK
In addition to our AML controls, our Client Money Protection policy is one of the most robust available in the UK. Client funds are managed through PayProp, an industry-leading, fully audited payment platform specifically designed for property professionals.
PayProp provides:
Segregated client accounts
Automated payment reconciliation
Full transaction transparency
Real-time reporting and audit trails
Our client money procedures are regularly reviewed, stress-tested and independently scrutinised, ensuring landlords, sellers and tenants can have complete confidence that their funds are secure at all times.
Why This Matters to Landlords and Sellers
The HMRC penalty data highlights a hard truth: not all agents operate to the same standard. Choosing an agent without robust AML controls or secure client money systems can expose landlords and sellers to unnecessary financial and legal risk.
By contrast, working with an agent that prioritises compliance, transparency and security means:
Reduced exposure to fraud and regulatory breaches
Faster, cleaner transactions
Complete peace of mind
In a market facing increasing scrutiny and regulation, strong compliance is no longer optional — it’s essential.
Thinking of selling or letting?
If you want an agent that takes regulation seriously, protects your money properly, and operates to the highest professional standards, we’d be delighted to talk. Sean McMahon, our Property Expert for Edinburgh has over 35 years experience in estate agency sales, lettings, property management, financial services and marketing.
Request a free valuation here or send Sean a message directly on 07304058040
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