Definition of Money Laundering

Money laundering is the process by which criminals disguise money and other assets to make them appear legitimate, concealing any obvious link to their criminal origins. Within the property sector, money laundering may involve:

• purchasing a property using the proceeds of crime, then letting or selling it on to give the criminal an apparently legitimate source of funds;

• using complex company structures across multiple countries and bank accounts to obscure the real purpose of a transaction and its beneficial ownership;

• making large payments to an estate agency or lettings business and reclaiming them later;

• using funds derived from mortgage fraud to purchase a property.

Related Legislation

The primary UK legislation covering anti-money laundering (AML) and counter-financing of terrorism (CFT) includes:

• Proceeds of Crime Act 2002

• Terrorism Act 2000

• Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 & Money Laundering & Terrorist Financing Amendments 2019

• Criminal Finances Act 2017

• Economic Crime (Transparency & Enforcement) Act 2022

• Terrorist Asset-Freezing Act 2010

• Anti-terrorism, Crime and Security Act 2001

• Counter Terrorism Act 2008, Schedule 7

• Bribery Act 2010

Seddons’ Commitment

Seddons is committed to ensuring that it has robust controls in place to counter money laundering and terrorist financing activities, in line with the Money Laundering, Terrorist Financing & Transfer of Funds (Information on the Payer) Regulations 2017 and the 2019 Amendments.

Seddons is registered with HMRC for anti-money laundering supervision under the Money Laundering Regulations.

Risk-sensitive policies and procedures have been established to anticipate and prevent money laundering and terrorist financing.

A risk-based approach is applied, whereby customers are assessed for the likelihood of using the business for money laundering. While Seddons assumes that the majority of clients and customers will not engage in money laundering, it has identified certain criteria that indicate higher risk (e.g., no face-to-face meeting to establish identity).

Seddons has carried out a comprehensive risk assessment of its business activities to ensure compliance measures are proportionate to the risks identified.

The company’s risk assessment defines the types of transactions it engages in and sets out procedural requirements according to risk levels. This assessment is regularly reviewed and updated.

Seddons is committed to staff training in AML legislation, which forms part of the induction process for all new staff.

The Seddons Money Laundering Reporting Officers (MLRO) are Rob Hann, based at Seddon Estate Agent, 6 High Street, Cullompton, Devon, EX15 1AA, Dan Barclay, based at Seddon Estate Agent, 8 Fore Street, Tiverton, Devon, EX16 6LH, and Emerald Seddon, based at Seddon Estate Agent, 4 Fore St, Bampton, Tiverton, Devon, EX16 9ND, who will forward reports to the National Crime Agency (NCA) where necessary.

Adherence to Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) procedures is mandatory to mitigate the risk of the business being misused for money laundering or terrorist financing.

This policy must be read alongside the Seddons Company Risk Assessment.

Client Identification Policy

Seddons requires all vendors and purchasers to be fully identified with at least two forms of ID:

• Photographic proof of identity, and

• Proof of residence (e.g., a utility bill dated within the last three months).

This requirement also applies to landlords and tenants where:

• Monthly rental value exceeds €10,000, or

• An “occasional transaction” of €15,000+ occurs (e.g., rent paid in advance).

For sellers and landlords, checks may include a Land Registry title search.

All clients must be identified before Seddons enters into a business relationship, and customers must be identified when a transaction is agreed (subject to contract), before a sealed bid, or before a tenancy begins.

Where no face-to-face meeting takes place, enhanced due diligence is applied, requiring additional information and certified documents from recognised professionals (lawyer, accountant, surveyor, etc.). The professional’s validity will be verified and recorded.

Online AML ID checks, including PEP and sanctions screening, are also carried out with an approved provider.

Special Cases

Probate
Executors are identified through:

• An original or certified copy of the will naming them, or

• An original or certified copy of the grant of probate (or letters of administration, where no will exists).

Trusts
An original or certified copy of the Trust Deed must be obtained, naming the Settlor, Trustees, and Beneficiaries. Due diligence is carried out on the controlling party.

Lasting Power of Attorney
An original or certified copy of the Lasting Power of Attorney (for wealth) must be obtained, naming the attorneys. Due diligence is undertaken on these individuals.

Limited Company/LLP/RLE
For corporate clients, Seddons obtains relevant information such as company registration number, registered address, and evidence of authority to act. For UK-registered companies, Companies House searches are used.

Documentation requirements extend to all shareholders or voting right holders with 25%+ interest.

Risk Assessments

• Documented risk assessments are completed for all cases.

• For sales transactions, assessments are carried out at the outset, reviewed mid-transaction, and signed off at conclusion. Any changes in circumstances trigger a revised risk assessment.

• For lettings, assessments apply where rental values exceed €10,000/month or where a €15,000+ payment is involved. Assessments are updated if circumstances change (new parties, funding sources, bank details, etc.).

PEP and sanctions checks are always performed, with concerns escalated to the MLRO.

Politically Exposed Persons (PEPs)

PEPs are individuals entrusted with prominent public functions in the UK or abroad. This includes heads of state, government ministers, MPs, senior judiciary, central bank members, ambassadors, senior military officers, directors of state-owned enterprises, and senior members of international organisations.

The definition also covers:

• Family members (spouse/partner, children and their spouses/partners, siblings, parents).

• Close associates (business partners, joint ownership arrangements, beneficial owners of entities established for PEPs).

Enhanced due diligence is applied in all PEP cases, including verifying the source of wealth and funds.

Sanctions

Seddons screens all clients against sanctions registers (including FATF lists).

The firm will not transact with anyone on the sanctions list and will submit a Suspicious Activity Report (SAR) to the NCA if there is reasonable cause to suspect an offence.

Payments must be made from an account in the client’s name, with bank details verified both manually and via the Seddons verification system.

Suspicious Activity Reporting

Suspicious activity is reported to the Seddons Money Laundering Reporting Officers (MLRO); Rob Hann, based at Seddon Estate Agent, 6 High Street, Cullompton, Devon, EX15 1AA, Dan Barclay, based at Seddon Estate Agent, 8 Fore Street, Tiverton, Devon, EX16 6LH, and Emerald Seddon, based at Seddon Estate Agent, 4 Fore St, Bampton, Tiverton, Devon, EX16 9ND.

The MLRO may escalate to the National Crime Agency (NCA) where necessary.

Suspicious activity may include, but is not limited to:

• New customers unwilling to provide ID or disclose the source of funds.

• Use of intermediaries to obscure identity.

• Transactions with no clear commercial purpose.

• Payments made by or to unrelated third parties.

• Large unexplained cash payments.

• Sales below market value with unconnected persons.

Reports must be kept confidential.

Record Keeping

Seddons maintains records for five years, including:

• Copies/references of ID verification (five years post-relationship or transaction).

• Supporting documents for transactions (five years post-completion).

Records demonstrate compliance and support investigations.

Compliance audits are conducted annually (or more frequently if required) and used for staff training and development.

Review

This policy will be reviewed annually as part of the audit process or sooner if legislation changes.