Date Published 23 December 2019
The Fifth Money Laundering Directive will come into force in the UK on 10 January 2020.
The Fifth Money Laundering Directive will be implemented through amendments to the Money Laundering etc. Regulations 2017. The new businesses covered by the legislation are letting agents, art market participants (including operators of freeports), and providers of exchange or storage services for 'crypto-assets'.
Letting agents must carry out customer due diligence on landlords and tenants where for a period of a month or more, and at a rent which during at least part of that period is, or is equivalent to, a monthly rent of 10,000 Euros or more.
Where the customer is a legal person, trust, company, foundation or similar legal arrangement estate and letting agents must take reasonable measures to understand the ownership and control structure of that legal person, trust, company, foundation or similar legal arrangement.
All letting agents must register with HMRC for AML supervision if they are dealing with monthly rent of 10,000 Euros or more. If agents are already registered with HMRC for Sales business they need to advise of their Lettings work too, however, there is no extra charge.
Enhanced due diligence measures must include: obtaining additional information on the customer and on the customer's beneficial owner; additional information on the intended nature of the business relationship; information on the source of funds and source of wealth of the customer and of the customer's beneficial owner; obtaining information on the reasons for the transactions.