Estate agents turn blind eye to ‘dirty money’ property deals

ESTATE agents are failing to flag up possible “dirty money” transactions, Home Office figures show.

They submitted just 710 reports of suspect deals to the National Crime Agency (NCA) – which is cracking down on Russian money-laundering – in the year to March.

This compared with 5,036 from accountants and 2,660 from independent lawyers, according to the data.

Ministers fear estate agents may be the weak link in the battle against money-laundering. It follows claims that UK property worth £4.4 billion may have been bought with suspicious wealth. More than a fifth of that – £880 million – went to Russians.

Ben Wallace, the security minister, said: “Estate agents are a crucial line of defence and that’s why they’re under a legal – and moral – obligation to report when they spot something amiss.”

Mr Wallace said money-laundering was not a “victimless” crime, adding: “They reinvest it in serious organised crime, from drug importation to child sexual exploitation, human trafficking and even terrorism.”

The Government’s “Flag It Up” campaign provides advice and support on reporting suspicious transactions.

Under legislation introduced last year, professionals are expected to report signs such as a client being evasive or contradictory about the source of a large sum of money, or using many different bank accounts.

The anti-corruption group Transparency International has said London is “the choice destination for Russians with suspicious wealth to move and they have had little trouble doing so, taking advantage of lax regulation and offshore secrecy”.