Estate agents were today warned they have “a moral and legal duty” to report buyers they suspect of using dirty money to purchase luxury properties.
Security minister Ben Wallace said it was vital that more tip-offs were provided to the authorities from the property industry, where organised criminals launder their illicit wealth.
Any failure to report suspicions risked allowing people-traffickers, drug dealers and other criminals to fund further crimes, he said.
Mr Wallace added that “high-end real estate” was particularly vulnerable because “luxurious properties in the UK are seen as a badge of wealth and respectability”.
His comments came as he launched the latest phase of the Government’s Flag It Up campaign against money laundering.
It has previously focused on increasing the number of “suspicious activity reports” provided to the authorities by solicitors and accountants. The campaign now hopes to encourage more estate agents to come forward, as they are compelled by law to raise the alarm when they suspect dirty money is being used to buy property.
Mr Wallace said today that the 710 reports submitted by estate agents during the last financial year was far behind the 5,036 provided by accountants and the 2,660 alerts from legal professionals.
“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,” Mr Wallace said.
“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.”
Campaigners, including the anti-corruption organisation Transparency International, have long complained London property is being used by overseas criminals, and those from the UK, as a safe haven for their illicit wealth.
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Ministers have responded recently by introducing an “unexplained wealth order” power under which those with property bought with suspect wealth can be compelled to explain the source of their money.
The first person to fall foul of the law was named this month as Zamira Hajiyeva, the wife of a banker from Azerbaijan. She owns a Knightsbridge home bought for £11.5 million and a £10.5 million golf club in Ascot.
The National Crime Agency believes both were acquired with money that her husband, Jahangir, stole from the state bank he ran. She denies the allegations.
The reporting drive announced today is backed by the National Association of Estate Agents and the Royal Institution of Chartered Surveyors.
