Money Laundering Regulations 2007

New money laundering regulations came into force on 15 December 2007.

The OFT has been given a new role under the Money Laundering Regulations 2007 (the regulations). This page outlines our new role and provides information for affected business.

Who will the OFT supervise?

The OFT is the Supervisory Authority for:

• Estate Agents – those engaged in estate agency work as defined by the Estate Agents Act 1979
• Consumer Credit Financial Institutions (CCFIs) – a CCFI is someone carrying on consumer credit lending activity who is not authorised by the FSA.

Some other business sectors are supervised by FSA and HMRC.

Who is my supervisor?

We are working with the FSA, HMRC and other supervisors to produce a flow chart which should help you work out who your supervisor will be. This will be available on this site shortly. In the meantime you may find it helpful to refer to the FSA's draft flowchart.

When do firms have to register with OFT?

We have decided that we will require firms to register with the OFT. We are currently developing our thinking of how and when to require registration.

What fees are payable?

We have not calculated fees due from businesses. No fees are payable at the moment. We will advise later in the year on fees payable.

What guidance is available to help business?

The OFT's core guidance for estate agents and CCFIs on their obligations under the regulations provides information on what they are required to do. This guidance was developed with industry representatives from the estate agency and consumer credit sectors.

Download Money Laundering Regulations 2007: core guidance (pdf 160 kb).

We have also produced an information summary for estate agents and CCFIs (pdf 65 kb) which provides a short summary of what they must do under the regulations. This information summary is not intended to be a substitute for the core guidance but to provide estate agents and CCFIs with a brief overview.

The Joint Money Laundering Steering Group which is made up of industry trade associations has published draft guidance on business's legal obligations. This guidance is aimed at business in the financial sector and can be found at the JMLSG website.

The National Association of Estate Agents (NAEA) and the Royal Institute of Chartered Surveyors (RICS) also publish guidance for their members on estate agents' obligations.

How will the OFT supervise firms?

Our focus initially will be on raising levels of awareness and helping business to reduce the risks of being used for money laundering. 

We have powers to take enforcement action against those businesses that fail to put in place the anti-money laundering systems and controls. We have powers to take prosecutions and to impose civil financial penalties for breaches of the regulations. If appropriate where we see non compliance we would aim to alert the business and to ensure that they took the necessary action to address the issues identified.

We will publish our enforcement approach to the anti-money laundering supervisory regime in early 2008.

What is Trading Standards role?

Local authority trading standards services will share monitoring and enforcement powers with the OFT under agreements to be negotiated. Until the arrangements are in place the OFT will be responsible for supervision.

Further information

If you have any questions about the OFT's new role please email amld3@oft.gsi.gov.uk Please note that we can only answer questions about the OFT role.

Information about registration and fees will be published on this site in due course.

Further details about the draft regulations and the Third Money Laundering EU directive can be found on the Treasury website.

See information on estate agency and the Estate Agents Act 1979.

See information on consumer credit licences and how to apply for a licence.

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