Anti-Money Laundering (AML) Risk Assessment and Policy
Oakhill Estate Agents Limited
Directors: Justin Maisey, Michael Maisey, Andy Walker Registered Office: 6 South Street, Isleworth, TW7 7BG Date: 30th October 2024
1. Introduction
Oakhill Estate Agents Limited ("Oakhill") is an independent, family-run estate agency based in Isleworth, specializing in residential sales, lettings, and property management in Isleworth, St Margarets, Twickenham, Whitton, and surrounding areas. Founded in 2012 by brothers Justin and Michael Maisey, with Andy Walker joining in 2015, Oakhill is committed to preventing money laundering and terrorist financing in compliance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017). As an estate agency, Oakhill is supervised by HM Revenue & Customs (HMRC) and adheres to guidance from the Financial Conduct Authority (FCA) and the Joint Money Laundering Steering Group (JMLSG) where applicable.
This document outlines Oakhill’s AML risk assessment and policies, tailored to our operations as a small to medium-sized enterprise (SME). It addresses the risks associated with property transactions and lettings, ensuring compliance with MLR 2017, particularly Regulation 18, which mandates a written risk assessment.
2. AML Risk Assessment
The following risk assessment evaluates the money laundering and terrorist financing risks relevant to Oakhill’s operations, proportionate to the size, scope, and nature of the business.
2.1. Business-Wide Risk Assessment
2.1.1. Nature of Services
Oakhill provides estate agency services, including:
- Facilitating the sale and purchase of residential properties.
- Managing property lettings for landlords and tenants.
- Providing property management and valuation services.
Risk Level: Medium to High
Rationale: Estate agents are vulnerable to money laundering due to the high-value nature of property transactions, which can be used to launder illicit funds or obscure beneficial ownership. The National Risk Assessment (NRA) 2020 by HM Treasury identifies the property sector as a key target for money laundering, particularly through cash payments or complex ownership structures. As an SME focused on local markets, Oakhill’s transaction volume may limit exposure compared to larger firms, but risks remain due to the nature of property transactions.
2.1.2. Client Profile
Oakhill serves a diverse client base, including:
- UK-based individuals and businesses purchasing or renting properties in Isleworth and surrounding areas.
- International clients, including high-net-worth individuals, seeking properties in the UK.
- Potential involvement with politically exposed persons (PEPs) or clients with complex ownership structures (e.g., trusts or corporate buyers).
Risk Level: Medium to High
Rationale: International clients from high-risk jurisdictions (as listed by the Financial Action Task Force, e.g., Iran, North Korea) pose a higher risk due to potential exposure to PEPs, sanctions, or weaker AML controls. UK-based clients, particularly local residents in Isleworth and nearby areas, generally present lower risk, but due diligence is required for all clients, especially for high-value transactions or cash payments.
2.1.3. Geographic Risk
Oakhill operates primarily in the UK, focusing on Isleworth, St Margarets, Twickenham, Whitton, and surrounding areas, but may engage with clients or transactions involving:
- Low-risk jurisdictions (e.g., EU countries with robust AML frameworks).
- High-risk jurisdictions (e.g., FATF high-risk countries or jurisdictions with high corruption indices).
Risk Level: Medium
Rationale: Transactions involving high-risk jurisdictions increase the likelihood of money laundering or terrorist financing. Oakhill’s focus on local UK markets reduces geographic risk, but properties in high-value areas like West London may attract higher-risk clients, necessitating enhanced017 due diligence.
2.1.4. Delivery Channels
Services are delivered through:
- Online platforms (website: www.oakhillagents.co.uk).
- In-person consultations at Oakhill’s office (6 South Street, Isleworth) or property sites.
- Email (info@oakhillagents.co.uk) and telephone communications (0208 568 4433).
Risk Level: Medium
Rationale: Online and remote interactions increase the risk of identity fraud or impersonation, as verifying client identities remotely is more challenging. In-person consultations allow for direct verification but may still involve complex transactions requiring scrutiny.
2.1.5. Transaction Profile
Oakhill handles transactions involving:
- High-value property sales, ranging from mid-range to premium residential properties.
- Rental agreements with monthly payments for residential lettings.
- Potential cash payments or third-party funding for property purchases.
Risk Level: High
Rationale: High-value transactions, particularly those involving cash or third-party funds, are a common method for money laundering. The NRA highlights that criminals may use property purchases to integrate illicit funds into the legitimate economy. Oakhill’s focus on residential properties in West London, a high-value market, increases this risk.
2.2. Risk Mitigation Measures
To address the identified risks, Oakhill implements the following mitigation strategies:
- Customer Due Diligence (CDD): Conducting CDD for all buyers, sellers, landlords, and tenants involved in property transactions or letting agreements, as required by MLR 2017.
- Enhanced Due Diligence (EDD): Applying EDD for high-risk clients, including PEPs, clients from high-risk jurisdictions, or transactions involving significant cash payments.
- Transaction Monitoring: Scrutinizing the source of funds for property purchases, particularly for high-value or cash-based transactions.
- Staff Training: Ensuring all employees are trained on AML obligations and red flags for suspicious activity.
- Record-Keeping: Maintaining records of CDD, transactions, and risk assessments for at least five years, as required by MLR 2017.
3. AML Policy
This AML policy outlines Oakhill’s procedures to comply with MLR 2017 and prevent money laundering and terrorist financing.
3.1. Roles and Responsibilities
- Directors (Justin Maisey, Michael Maisey, Andy Walker): Oversee AML compliance, appoint the Money Laundering Reporting Officer (MLRO), and ensure the implementation of this policy.
- Money Laundering Reporting Officer (MLRO): Responsible for receiving and assessing reports of suspicious activity, reporting to the National Crime Agency (NCA) via Suspicious Activity Reports (SARs), and maintaining AML compliance records.
- Employees: Required to conduct CDD, report suspicious activity to the MLRO, and complete annual AML training.
3.2. Customer Due Diligence (CDD)
Oakhill will conduct CDD for all clients involved in property transactions or letting agreements, including:
- Identification: Verifying client identity using government-issued ID (e.g., passport, driving licence) and proof of address (e.g., utility bill).
- Beneficial Ownership: Identifying the beneficial owner(s) of corporate or trust entities involved in transactions.
- Source of Funds: Verifying the source of funds for property purchases, particularly for high-value transactions or those involving cash payments.
CDD will be conducted before establishing a business relationship or completing a transaction, as per Regulation 27 of MLR 2017.
3.3. Enhanced Due Diligence (EDD)
EDD will be applied in high-risk scenarios, including:
- Clients identified as PEPs.
- Clients or transactions involving high-risk jurisdictions (per FATF lists).
- Transactions involving significant cash payments or unusual patterns (e.g., third-party funding without clear justification).
- Complex ownership structures (e.g., offshore trusts or layered corporate entities).
EDD measures include obtaining additional documentation, verifying the source of wealth, and consulting external databases (e.g., sanctions lists).
3.4. Suspicious Activity Reporting
- Employees must report any suspicious activity to the MLRO immediately, including transactions with no apparent economic purpose, unusual payment methods, or reluctance to provide CDD information.
- The MLRO will assess reports and, if necessary, file a SAR with the NCA within 24 hours of suspicion, as required by the Proceeds of Crime Act 2002.
- Oakhill will not “tip off” clients about SARs, in compliance with MLR 2017. 3.5. Training
- All employees, including Directors Justin Maisey, Michael Maisey, and Andy Walker, will receive annual AML training covering MLR 2017, red flags, and reporting procedures.
- New staff will receive AML training within 30 days of joining.
- Training records will be maintained for five years.
3.6. Record-Keeping
- Oakhill will retain CDD records, transaction details, and risk assessments for at least five years after the end of a business relationship or transaction, as per Regulation 40 of MLR 2017.
- Records will be stored securely in electronic and/or physical formats at 6 South Street, Isleworth, accessible for HMRC inspections.
3.7. Ongoing Monitoring
- Oakhill will monitor client relationships and transactions for suspicious activity, including reviewing high-value transactions or changes in client behavior.
- The MLRO will conduct quarterly reviews of AML compliance and update the risk assessment as needed.
3.8. Sanctions Compliance
- Oakhill will screen clients against UK sanctions lists (maintained by the Office of Financial Sanctions Implementation) to ensure compliance with sanctions regulations.
- Any matches will be reported to the MLRO and, if necessary, to HMRC or the NCA. 4. Implementation and Review
- This AML policy is effective from May 27, 2025, and will be reviewed annually or upon significant regulatory changes.
- Justin Maisey, Michael Maisey, and Andy Walker, as Directors, will ensure compliance with this policy and appoint an MLRO to oversee day-to-day AML operations.
- Any breaches of this policy will result in disciplinary action and may be reported to HMRC.
5. Contact Information
For AML-related queries or to report suspicious activity:
Money Laundering Reporting Officer
Oakhill Estate Agents Limited
Email: info@oakhillagents.co.uk
Phone: 0208 568 4433
Address: 6 South Street, Isleworth, TW7 7BG