OFT consults on future anti-money laundering supervisory approach and fee structure

15/10 9 February 2010

The OFT is consulting on its future approach to supervising estate agents and certain credit lenders under the Money Laundering Regulations 2007 and the appropriate fee structure.

The OFT has, to date, operated an interim compliance monitoring regime. It is now seeking views on a more appropriate model for monitoring and enforcement activity for the longer term. The consultation covers:

identifying those who have not registered with the OFT
monitoring and enforcement
penalties, and
future fee structures.

The OFT has a duty to supervise effectively estate agents and certain consumer credit lenders (known as CCFIs).

John Parker, OFT director of Anti-Money Laundering, said:

'This is an opportunity for firms that fall under our supervision to have their say on the best way for us to meet the obligations set out in the Regulations.

'We want to have an active dialogue on the best long-term approach and would encourage firms to respond to this consultation.'

NOTES

1. See the Anti-money laundering consultation.

2. The Money Laundering Regulations 2007 came into force on 15 December 2007. They implement the Third Anti Money Laundering Directive. Prior to 15 December 2007 the businesses supervised by the OFT had to comply with the Money Laundering Regulations 2003. They did not have a supervisor.

3. The supervisory regime is self-funding. The OFT has the power to charge fees to recover the costs of supervision.

4. In July 2009 the OFT launched a registration scheme. Existing businesses should have registered by 31 January 2010. New firms must register with the OFT before trading. Carrying on business as an estate agent or CCFI after that date without being registered is an offence and could result in a financial penalty by the OFT or prosecution.

5. Information on registration (and application forms) is available on the Anti-Money Laundering registration page.

6. Fees for an application for registration received during 2009/10 are £115 per premise with:

a minimum fee of £115, for those firms who have no, or single premises, and
a maximum fee of £2,300 - equivalent to a firm with 20 premises.

7. For background information on the Money Laundering Regulations 2007 please see Money Laundering Regulations 2007.

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