HMRC fines Countrywide £215k in money laundering crackdown

Countrywide has been fined £215,000 by HMRC as part of a crackdown on estate agents turning a blind eye to money laundering.

The fine follows a week of unannounced inspections which saw HMRC visit 50 estate agents across England after they were suspected of trading without being registered as required under money laundering regulations.

During the visits, HMRC inspectors questioned the businesses to establish whether they were trading in breach of the regulations.

Now-defunct Tepilo, which was owned by Emoov, was slapped with a £68,595 fine.

Simon York, director of HRMC's Fraud Investigation Service, said: "Estate agents need to understand that criminals prey on weaknesses, so it’s vital they take all steps to protect themselves. The money laundering regulations are key to that, but there’s still a minority of agents who ignore their legal obligations. These inspections are a wake-up call that if you continue to trade illegally we will come knocking."

Ben Wallace, minister for national security and economic crime, said: "Criminals who seek to use this country as a place to launder money should be in no doubt that they have nowhere to hide. Estate agents are a crucial line of defence against them and that’s why they’re under a legal - and moral - obligation to file a report when they spot something amiss.

"It’s wrong to think of money laundering as a victimless crime. Those with dirty cash to clean don’t just sit on it - they reinvest it in serious organised crime, from drug importation to child sexual exploitation, human trafficking and even terrorism."

HMRC said it will now take action against the business that failed to comply, which can include fines, publication and criminal proceedings.

At 1555 GMT, Countrywide shares were down 0.9% to 10.64p.