Land buyers and sellers need to be prepared for increased security checks due to new regulations over money laundering.
The Government has introduced a new, tighter regime of identity checking for property transactions in a bid to reduce the opportunities for criminal organisations to launder money or finance terrorist activity.
According to the Central Association of Agricultural Valuers (CAAV), the requirements on agents selling and buying property have got "a lot tougher" as they now have to identify money laundering risks for the purchase – or sale – of land and farms.
This means checking identities, confirming the source of funds and reporting any suspicious activity to the authorities.
Buyers and sellers must therefore be prepared for increased security checks from land agents, said Kate Russell, policy and technical adviser at the CAAV.
“There are a number of different ways in which farmers can purchase property, and the security requirements will vary slightly depending on this,” explained Ms Russell.
“For those buying through private treaty, identification will be needed before an offer is accepted, whereas if you purchase through an auction you will have to register and confirm identification before you are allowed to bid.
“If you plan to acquire land via tender, buyers will have to confirm their ID as part of the tender process and before an offer is accepted.”
In cases where the buyer or seller is a trust, charity or a limited company, agents will also require information on the “beneficial owners” – those who own or benefit from the organisation, including trustees, beneficiaries, shareholders or directors.
Though agricultural sales may rank fairly low in terms of risk for fraud and money laundering, relying on the fact a person has known a land agent for years is no longer sufficient, Ms Russell explained.
They will still have to check identification and assess the risk of money laundering or terrorist financing in the transaction.
