"To combat the rising tide of suspicious activities, property developers must strengthen their compliance and anti-money laundering procedures. Embracing digital compliance technologies is a pivotal step in this direction"
The UK property industry is under siege, with 40 per cent of property developers reporting a surge in Suspicious Activity Reports (SARs) over the past six months, as reported by my firm SmartSearch. An equally concerning trend is that almost half of these developers continue to rely on manual checks for customer verification, leaving them vulnerable to potential compliance breaches.
The National Crime Agency mandates that regulated firms submit SARs when they suspect money laundering activities. Recent statistics reveal that the number of SARs submitted has doubled over the past five years, and is projected to reach one million for the first time this year.
It is clear that criminals view the property sector as an attractive avenue for laundering their dirty money, making it a prime target for such activities. In fact, Transparency International estimates that approximately £6.7 billion of suspicious funds have been funnelled into UK property since 2016. These figures underline the urgency of addressing this issue to protect the industry's integrity and reputation.
Despite the increasing number of suspicious activities, many property developers persist in using manual checks to verify customer identities. This antiquated approach involves relying on physical copies of official documents such as passports and driving licenses.
Unfortunately, this offers a false sense of security as criminals have become skilled at forging such documents. Relying on outdated manual methods not only increases the risk of financial crime but also hampers effective efforts to combat money laundering.
To combat the rising tide of suspicious activities, property developers must strengthen their compliance and anti-money laundering procedures. Embracing digital compliance technologies is a pivotal step in this direction.
The rise in Suspicious Activity Reports within the UK property development industry demands immediate action from all stakeholders. The escalation of criminal efforts to launder illicit funds jeopardises the industry's credibility and integrity.
The compliance landscape is evolving rapidly, and those who adapt will be better equipped to safeguard their businesses, protect their clients, and play a role in fortifying the UK property industry against the onslaught of criminal activity.
By leveraging digital compliance solutions, property developers can demonstrate their commitment to combating financial crime and pave the way for a more secure and trustworthy property market for all stakeholders.
