Smart Compliance Secures Best Supplier Award at RAN Award Conference
Smart Compliance Secures Best Supplier at the RAN Awards
Smart Compliance has been honoured with the Best Supplier Award at the RAN Awards, which took place on the evening of the 6th November. The awards, hosted by industry notables Simon Whale, David Mintz, and Richard Durrant, buzzed with an infectious energy. Amy Shields and Will Sendall, representing Smart Compliance, were met with rousing applause as they took to the stage—a testament to the strong bonds and mutual respect within the RAN network.
Smart Compliance’s journey with RAN members has been one of mutual growth and support. By assisting them with their Anti-Money Laundering (AML) obligations, Smart Compliance has enabled members to streamline their processes, freeing up valuable time and resources, and even creating opportunities for additional revenue.
Amy Shields, Commercial Director, shared her thoughts on the award win: “I can’t express how thankful we are to the RAN members for backing us. Winning the Best Supplier Award really shows that what we’re doing resonates with them. It’s more than just an award for us; it’s a big thumbs-up for the hard work our team puts in every day. Our clients are the reason we push the boundaries and why we love what we do. Here’s to continuing our journey together and to even more success for all RAN members!”
The award, voted for by the members themselves, is a significant endorsement for Smart Compliance. It reflects the industry’s acknowledgment of the company’s pivotal role as a support system for estate agencies navigating the complexities of AML compliance. As we celebrate this achievement, we are already looking to the future. This award reinforces our commitment to the RAN members and the property sector at large.
If your estate agency is looking to enhance its AML processes, we invite you to learn more about Smart Compliance. Click the link below to book a call and discover how our award-winning services can benefit your business.
Agents Share Their Experiences with Charging for AML Compliance
As agents become increasingly vigilant about Anti-Money Laundering regulations and engage third parties for compliance checks, frequently asked question arises: Is it OK to charge clients for AML?
Like other business functions, AML compliance incurs costs from technology, staff training, and operations like document verification and checks. Given this, it’s understandable that many agents might choose to pass these expenses onto clients.
Those partnering with Smart Compliance and introducing AML charges vouched for the ease of its implementation, facing no resistance from buyers or sellers. Listen to their experiences in the video below.
Sharp Rise in AML Charges
Sharp Rise in AML Charges:
Over Half of Agents Now Charge Purchasers, Smart Compliance Data Reveals
As agents grow increasingly vigilant of Anti-Money Laundering (AML) regulations and turn to third parties to carry out AML checks, a frequently asked question arises: Is It OK to charge your clients for AML? A February 2023 Estate Agency Today article highlighted that 28% of agents were contemplating or already implementing such charges. Seven months later, Smart Compliance reports an upward shift: 52% of their partnered agents charge both buyers and sellers, while 55% charge only purchasers.
Like any other business process, AML compliance comes with its own set of costs, whether managed internally or outsourced to an AML specialist. These can include technology expenses, investment in staff training to remain up to date with regulations, and operational costs associated with hours spent chasing documents, carrying out checks, and reviewing compliance packs. Given these costs, it’s not surprising that agents feel it’s OK to pass on this expense to clients, especially if it ensures an efficient and compliant property transaction.
Clients of Smart Compliance who’ve started charging for AML have vouched for the ease of its implementation, without any pushback from their buyers and sellers. The agents surveyed likened the process of charging for AML services to that of an Energy Performance Certificate (EPC) – it’s a legal requirement. Just as clients pay for an EPC when selling or renting their property, understanding its importance and legal necessity, they can be advised about the importance of AML services in a similar way.
Amy Shields, the Commercial Director at Smart Compliance, and a former branch manager, emphasises the strain of compliance costs on agents. She states, ” Agents can’t continue to cover every compliance cost. I view these expenses similarly to an EPC – it’s a legal requirement. Many agents we speak to are trying to cut or minimise costs related to their suppliers and ‘tech stack’ due to market changes. I love being able to help clients stay compliant without any additional business costs.”
Tips for Making the Change
For agents considering charging their clients for AML, here are some tips:
Be Transparent & Informative: Confidently explain the reason behind the charge, emphasising AML compliance as a legal necessity. Provide straightforward explanations on your website and in your agency terms to ensure complete transparency with both sellers and buyers.
Outline Requirements Early On: It’s always good to set expectations at the beginning of a transaction. This can be done by detailing the AML requirements and charges at the start of the client relationship.
Include Information on All Marketing and Correspondence: From valuation documents to online property listings, make sure AML charges are thoroughly documented. Incorporate marketing materials in valuation packs and distribute them during viewings to inform about your company’s compliance procedures.
Highlight the Benefits of Smart Compliance:
Using Smart Compliance? Highlight its unique client benefits. These include a complimentary 3-month Lifetime Legal membership, which includes: a standard or mirror Will, expert legal advice, and Mover Protection – allowing clients to potentially reclaim up to £2570 should their sale or purchase fall through due to no fault of theirs*.
In conclusion, introducing a new charge can initially seem challenging. However, as agents have discovered, it often just a case of a change in mindset and, much like discussing fees, having confidence in your professional service. Agents’ experiences show that with the right approach, clients not only understand but also appreciate the necessity of paying for AML services. Discussing AML isn’t about selling; it’s about informing and advising.
*t’s and C’s Apply
Mover Protection Refund Guidelines
Mover Protection Refund Guidelines
With the benefits of Mover Protection, if your house sale or purchase fails for reasons beyond your control, you may be eligible for a refund of certain costs incurred.
Mover Protection only covers the first property named on your mortgage application. To request a refund, you should contact Lifetime Legal on: 0344 880 2087
- You will be sent a Mover Protection refund form and required to provide details of the circumstances and copies of receipts, or receipted invoices, for each individual fee
- Costs that may be refunded include legal fees, marketing fees, estate agency fees, survey and search fees. Other costs may also be considered
- The maximum that may be refunded is £720 for a house sale, £1,850 for a house purchase, or £2,570 for both (inc. VAT), subject to item limits shown on the back page
- Refunds are made at the sole discretion of Lifetime Legal
Below are examples of the most common circumstances for a Mover Protection refund of failed transaction costs.
Common Reasons For A Mover Protection Refund
If you are buying and…
- The property is withdrawn from sale by the vendor due to reasons beyond your control;
- The vendor receives and accepts an offer from a prospective buyer, which is a minimum of £5,000 greater than the offer they previously accepted from you and you are not prepared to increase your offer;
- The mortgage lender’s survey or valuation on the property identifies that rectification work needs to be carried out, the cost of which exceeds 5% of the sum originally offered or values the property at less than 90% of the sum offered for the property and which has been accepted and you decide not to proceed;
- The mortgage lender insists on a secondary survey such as damp and timber or electrical survey and the mortgage lender insists on additional rectification work being carried out to the property, the cost of which exceeds 10% of the agreed asking price and you decide not to proceed;
- The vendor is not legally entitled to sell the property or to transfer interest in the property to you;
- A survey or valuation is carried out and highlights that the property has been underpinned or shows signs of subsidence and you decide not to proceed with the purchase or the lender will not lend;
- A Local Authority search highlights that the property is the subject of a compulsory purchase order, in a flood plain, on contaminated land or over a mining area;
- A search highlights the fact that there is a defect in the title and this cannot be rectified and you decide not to proceed with the purchase or the lender will not lend;
- You or a member of your immediate family dies or contracts a critical illness, sustains a serious injury, is given notice of redundancy or relocation and you decide not to proceed;
…then Mover Protection may refund your purchase costs up to £1,850.00
If you are selling and…
- The property remains on the market 12 months after the date it was first listed, having been continuously listed throughout the 12 month period (apart from any period where the property was temporarily removed from the market as a result of an offer being accepted and subsequently withdrawn in which case the property must have been returned to the market within 14 days of the sale falling through), as long as:
– You have not received and rejected two or more offers of at least 95% of the asking price during the 12 month period of continuous marketing;
– You have not refused advice from your estate agent to reduce your asking price during the 12 month period of continuous marketing;
- A Purchaser’s survey on the property identifies that rectification work needs to be carried out, the cost of which exceeds 5% of the asking price and without the completion of which no other Purchaser can be found within 12 months of the date the property was first placed on the market;
- Without your prior knowledge a survey or valuation which is carried out highlights that the property has been underpinned or shows signs of subsidence and as a result the market value of the property is reduced by at least 10% and you withdraw the property from the market;
- Without your prior knowledge a Local Authority search which is carried out highlights that the property is the subject of a compulsory purchase order, in a flood plain, on contaminated land or over a mining area and as a result the market value of the property is reduced by at least 10% and you withdraw the property from the market;
- Without your prior knowledge a search highlights the fact that there is a defect in the title and this cannot be rectified and as a result the market value of the property is reduced by at least 10% and you withdraw the property from the market;
- You or a member of your immediate family dies or contracts a critical illness, sustains a serious injury, is given notice of redundancy or relocation and you decide not to proceed;
…then Mover Protection may refund your sale costs up to £720.00
How Mover Protection Has Helped Our Customers
Just after their full survey, Mr and Mrs K were shocked when their purchase property was withdrawn from sale by the vendor, leaving them £1,531 out of pocket. They realised they were covered by Mover Protection and we paid in full.
Mrs R claimed £498 when she and her partner were gazumped on a purchase by a third party. We paid in full.
The breakdown of refundable costs can be found in the table below:
Full terms and conditions at: www.lifetimelegal.co.uk
Download this handy guide for future reference.
Document Submission for Clients Opting Out of Credas
Document Submission for Clients Opting Out of Credas
As an Estate Agent, you may come across clients who opt out of using Credas for their identity
verification process. In such cases, it is essential to know which documents are required to establish
their identity and comply with Anti-Money Laundering (AML) regulations. This guide will walk you
through the necessary steps and the documents you need to obtain from your clients in these
situations.
Proof of identity (photo ID)
For clients who opt out of Credas, you should request one of the following Photo ID documents:
• Passport
• Driving Licence
Pooled documents for clients without photo ID
In cases where your client does not have an in-date or valid Photo ID, you should request one
document from each of the below sections, as outlined in the Joint Money Laundering Steering
Group guidance.
Proof of address documents
For proof of address documents, it’s any of the documents in section 2.
Download this handy guide for future reference.
How to Certify Documents
How to certify documents
We recommend getting a ‘rubber stamp’ made to save time and prevent queries.
Each document must be signed and dated by the certifier, and must include the following:
• The certifier’s full name
• The certifier’s occupation, business address, and telephone number (and if possible, a business stamp)
Certification Requirements
We require Photo ID documents to be certified within the last 12 months and proof of address documents to be dated and certified within the last 3 months. The certification should include the specific wording as per the UK Government website:
For Photo ID:
‘I certify that this is a true likeness of (title and full name) and a true copy of the original document’
For Proof of Address:
‘I certify that this is a true copy of the original document’
Download this handy guide for future reference.
Smart Compliance and Street Collaborate to Streamline Compliance Processes for Estate Agents
Smart Compliance and Street Collaborate to Streamline Compliance Processes for Estate Agents
Smart Compliance is excited to announce its collaboration with Street, the award-winning CRM for estate agents. This collaboration aims to empower agents by streamlining their compliance processes and enabling them to focus on their core business operations while ensuring ongoing adherence to regulatory requirements.
With the integration of Smart Compliance and Street CRM, estate agents can now access comprehensive compliance features directly through their CRM platform. This seamless integration eliminates the need for repetitive, manual data entry and allows agents to effortlessly manage compliance tasks within their existing software environment.
Amy Shields, commercial director at Smart Compliance, highlights the ease of integration, stating, “Our API is designed to seamlessly plug into agency software, providing a user-friendly experience for estate agents. With just a few simple steps, agents can unlock the power of Smart Compliance within their existing CRM system, saving time and ensuring compliance at every step.”
One of the key benefits of this integration is the comprehensive compliance pack offered by Smart Compliance. This pack includes enhanced due diligence, where necessary, and automatic storage of property title deeds. In the event of an HMRC audit, estate agents can readily download the compliance pack, providing peace of mind and swift access to all necessary documentation.
Heather Staff Co-founder of Street, expressed enthusiasm about the integration, stating, “We are thrilled to collaborate with Smart Compliance to offer this integration to our valued estate agent clients. By combining the power of Street CRM with Smart Compliance’s cutting-edge compliance solutions, we are empowering agents to streamline their operations and stay compliant effortlessly.”
Vicky Bibiris, managing director of estate agency Location Location, an early adopter of the integration, shared her positive experience, saying, “The integration has been a blessing for our agency. It has significantly reduced the time and effort spent on compliance tasks, allowing us to focus more on serving our clients and growing our business.”
Unlock the potential of this powerful solution to revolutionise your agency’s compliance processes and streamline operations. Visit street.co.uk to learn more about Street CRM
Helpful tips & guidance
Helpful tips & guidance
How you can help speed up the process
- Please put notes on the lead you pass
- If you have customer documents then mention that in the lead notes but do NOT send to Lifetime Legal, Smart Compliance yet
Make sure your customers are expecting our call and are aware they need to pay (if applicable)
- Ensure they have their ID to hand for our call
- Make sure they know we may ask for additional information if needed
Enhanced due diligence
We may ask your customer to provide further information or documentation. In those cases, your customer will be referred to the Enhanced Due Diligence (EDD) team. The EDD team will be able to resolve many queries without needing to contact your customer but in others they will need to gather more information.
When and how to send documents to EDD
- Please don’t send documents in advance, only when asked by our team
- When certifying documents, please use the correct wording (see How to Certify Documents)
- Please send document as separate PDF’s
- Please name the .pdf file before sending it to EDD – the correct format should name the .pdf as the 6-digit case reference number and what the document is. For instance, the file name should be in the format: “456789grantofprobate.pdf”
How to certify documents
We recommend getting a ‘rubber stamp’ made to save time and prevent queries. Each document must be signed and dated by the certifier, and must include the following:
- The certifier’s full name
- The certifier’s occupation, business address, and telephone number (and if possible, a business stamp)
- A certification statement in the following terms:
For Photo ID: “I certify that this is a true likeness of (title and full name) and a true copy of the original document”
For Proof of Address: “I certify that this is a true copy of the original document”
The Certified Photo ID must have been certified within the last 12 months. The Certified proof of address must have been issued within the last 3 months.
5 day alerts requesting your assistance
If after 5 days of being with the EDD team the case has not passed, the EDD team will contact the person who referred the customer (or someone nominated in the company) and ask for assistance in obtaining any outstanding documentation required to pass the case.
10 day case fails
If after 10 days of being with the EDD team (rare) the case has not passed – it will be marked as ‘Failed’ and a ‘Failed Pack’ will be sent to the person who referred the customer (or someone nominated in the company). In the pack will be the reasons why the pack has failed. No further action will be taken by the EDD team unless the correct outstanding items are obtained by us and sent to EDD.
Useful to know
- Customers who don’t use Credas facial recognition will automatically be referred to EDD therefore extending the time taken to secure a pass.
- Always check the Agent Portal/your system first and remember on the Agent Portal to click the little document icon to read more notes.
- Never email a compliance pack to a customer
Download this handy guide for future reference.
Introducing Smart Compliance’s New App in Reapit’s AppMarket
Smart Compliance Unveils Key Insights: 55% of Case Loads Require Enhanced Due Diligence, as 6% Opt Out of Technology
Estate agents are grappling with an alarming burden of Anti-Money Laundering (AML) compliance, despite the availability of technology solutions designed to streamline the process. Smart Compliance, the UK’s leading provider of fully managed HMRC guaranteed AML compliance solutions, has unveiled a startling statistic: over 55% of AML checks conducted on behalf of buyers and sellers are referred to their Enhanced Due Diligence team. This demanding process necessitates extensive expertise and specialisation to adhere to the stringent regulatory guidelines set by HMRC.
Of the referred cases, a significant 15% which are flagged for Enhanced Due Diligence, involve transactions with executors and grants of probate. These cases require meticulous identification of all parties involved, in addition to thorough scrutiny of court documents, wills, and certificates. An additional 6% of the overall referred volume comprises of Limited Companies, Trusts, and Complex Corporate Structures, further intensifying the workload. Experienced professionals on the Smart Compliance team diligently perform these checks daily.
Additionally, it has been found that 6% of the overall referred volume opt out of the use of tech preferring traditional methods of compliance, leading to increased efforts on the part of Smart Compliance professionals to ensure meticulous checks are conducted.
Recognising the need to streamline AML compliance procedures for estate agents, Smart Compliance has launched a new App in Reapit’s AppMarket, which agents can access directly through their AgencyCloud CRM. This App enables estate agents to focus on their core business operations while ensuring ongoing compliance with regulatory requirements. The comprehensive compliance pack, inclusive of enhanced due diligence, where necessary, and property title deeds, is automatically saved and readily downloadable in the event of an HMRC audit.
Mark Armstrong, Group CEO at Reapit, said: “AML compliance is one of the biggest issues keeping agents awake in 2023. Fortunately, Smart Compliance’s new app now available on Reapit’s AppMarket will help agents perform their due diligence and meet their compliancy requirements with seamless efficiency.”
Steve Thompson, Director at Thomas Morris, and an early adopter, added: “With increasing legislation and fines within our vulnerable sector, we were keen to have a belt and braces approach, that’s where Smart Compliance came in. We have peace of mind that we are fully compliant, paired with the fact that our app integrates into Reapit for ease of use.”
Find Smart Compliance in the Reapit AppMarket Here
Reapit technology is used by over 78,000 agents in more than 15,000 branches worldwide, with over a million properties under management. For more information, please visit www.reapit.com.
Lifetime Legal Launches Smart Compliance: The Guaranteed AML Solution for Estate Agents
- Greater peace of mind
- Increased staff productivity
- Improved risk management
- Reduced risk of financial penalties