The Davis Collective LTD is covered by the Anti-Money Laundering Regulations 2007 due to its classification as an Estate Agent under the terms of the Estate Agents Act 1979.

By law you are an Estate Agent if:

  • You deal with people wanting to buy or sell freehold or leasehold property
  • You do this as part of a business
  • You act on instructions from a client

This policy applies to all employees and board members within the The Davis Collective LTD organisation.

Policy Statement

The UK property industry is regularly targeted by both domestic and international criminals in order to launder corrupt money through the high value transactions common to the industry. The Davis Collective LTD is committed to demonstrating the highest standards of integrity, transparency and accountability in all aspects of business conducted. We have a legal obligation, in line with the Anti-Money Laundering Regulations 2007, to obtain and hold personal information of all clients and property owners of whom we enter into a business relationship, as a control to counter money laundering and terrorist financing activities.

Staff should at all times:

  • Be wary of unusually large cash transactions.
  • Be aware of the possibility of money laundering when faced by clients/potential clients.
  • Be wary of the absence of a legitimate source of funds.
  • Be wary of the absence of a legitimate proof of ID and/or Address and/or source of funds.
  • Be wary of a delay or reluctance to provide proof of ID and/or Address and/or source of funds.

Staff should note that, under the Proceeds of Crime Act 2002, it is a criminal offence to suspect Money Laundering and do nothing about it.

It is the policy of The Davis Collective LTD to avoid any and all action under this legislation by ensuring that all suspicious activity is reported to the MLRO, William Davis via an Internal Suspicion Report (ISR). The MLRO is obliged to report and submit a Suspicious Activity Report (SAR) to the National Crime Agency (NCA) if they deem it the proper course of action.

It is the responsibility of the company directors to ensure that this policy be reviewed every 2 years to account for changes in regulation.

Identification Procedure

Where The Davis Collective LTD is carrying out relevant business and:

  • Forms an ongoing business relationship with a client
  • Undertakes a one off transaction involving payment
  • Undertakes a series of linked one off transactions involving payments

Then the following identification procedure must be followed before any business can be conducted with the organisation or individual. Satisfactory evidence of identity must be obtained that is capable of substantiating that the client is who they claim to be.

Evidence of identity must be obtained as follows:

  • Original documents of ID (e.g. valid Passport or Driving Licence), address (e.g. bank statement or utility bill from the last 3 months) that can be certified, copied and stored in the client file will verify the identity of individuals, or individuals associated with a company client.

If a property is held in more than one name, then verification checks must be carried out on each individual. Clients and sellers based overseas must provide ID countersigned as authentic by a professional person within the individual’s jurisdiction.

  • Original Certificate of Incorporation, Memorandum and Article of Association, information documenting the ownership and control structure of the company (signed by a director) when verifying an organisation. This information should also be cross referenced against public information on the company.

Persons of Significant Control (PSCs) must be identified and pass an individual due diligence check where enhanced due diligence is required.

A list of acceptable ID document requirements are listed in the appendix.

The Davis Collective LTD has provided in-depth forms that must be completed by staff; covering client information, risk assessments and the different levels of due diligence to ensure that all business relationships have been fully vetted and verified to mitigate risks to the company.

Face-to-face

When meeting with a potential client face-to-face in person then the following original documentation will be required before any business between us and them can be conducted; 

  • One Photo Identification Document – I.e. Passport or Driving License etc. 
  • One Proof of address Document – I.e. Utility bill or bank statement etc.
  • Potentially check against fraud + deceased + sanctions + PEP lists if applicable 

Electronically 

When gathering documentation on a potential client electronically after speaking online via skype or equivalent the following documentation must be provided and approved before any business between us and them can be conducted; These documents must be scanned copies of the original documents – if for any reason the documents are deemed to be of a fraudulent nature we will refuse to work with the potential client and if required by law report the fraudulent documents to the NCA via a SAR report. 

  • One or two forms of Photo identification Documents depending on the level of risk posed by the potential client to the business. 
  • Proof of address and address history for the last 3 years. 
  • Bank statement within the last 3 months 
  • Utility bill within the last 3 months 
  • Checks must be carried out against fraud + deceased + sanctions + PEP lists.
  • For clients outside of the UK we will check all documents provided against the Public Register of Authentic Travel and Identity Documents Online (PRADO) 

If satisfactory evidence of identity is not obtained at the outset of the relationship, then the business relationship or transaction(s) should not proceed until this becomes available.

Enhanced Due Diligence

There are several occasions where an enhanced level of due diligence (EDD) will be carried out such as when:

  • The client has been identified as ‘high risk’ in the initial risk assessment.
  • The client has not been met face to face.
  • The client is from a country deemed ‘high risk’ by the EU, FATF or HMT.
  • False or stolen documents are used as identification (a SAR must be submitted)
  • The client has been identified as a Politically Exposed Person (PEP).
  • The transaction is complex or unusual.

This EDD will comprise of more rigorous identification checks and wider internet searches (e.g. Facebook & LinkedIn) to verify that the person is who they say they are and checks against HM Treasury’s Sanctions List and with the Office of Financial Sanctions Implementation (OFSI) to ensure they are not under financial sanctions.

The law states that particular care must be taken when the individual or organisation is not physically present when being identified. Where a face to face meeting cannot take place, the business will make contact via digital methods e.g. Skype, Video Call, or will accept a letter of authorisation from the director of the client company. 

Ongoing Monitoring

As part of our compliance with the Anti-Money Laundering Regulations 2007, all clients of [insert company name] will be subject to ongoing monitoring to ensure that all transactions are consistent with our knowledge of the client and in keeping with previously collated information. Client due diligence for low risk clients will be reviewed annually and ID reviewed every 3-4 years whilst the due diligence for high risk clients will be reviewed every 6 months with ID reviewed annually.

Record Keeping Procedures

All records on clients and documentation surrounding relevant business matters will be maintained for 5 years from the conclusion of the business relationship or one-off transaction(s) including;

  • Identification evidence
  • Details of business transactions carried out for the client for whom we have obtained evidence

This information must be available to provide as evidence in a subsequent investigation by the authorities into money laundering.

These maintained records must provide an audit trail during an investigation, e.g. distinguishing the client and relevant transaction and recording how funds were received or paid.

In practice, The Davis Collective LTD will make and keep records of work carried out with clients routinely as part of the businesses daily operations, these shall be sufficient for this requirement.

Staff Training

Staff will undergo training when joining the business and every 2 years thereafter. Training will be provided by The Davis Collective LTD via an online AML training programme. 

Appendix:

INDIVIDUAL IDENTITY DOCUMENTS

We will require one document from List A and one from List B dated within the past 3 months for each owner/buyer/landlord/tenant of a property (from both parties, if there is more than one owner). We will also require one item from List C for home owners and landlords. For probate, companies & trusts please see individual requirements:

List A – Identity Document

  • Current signed Passport
  • Resident Permit issued to EU nationals by the Home Office
  • Current UK/EU photo Driving Licence (the old, paper licences and new photocard licences are accepted)
  • Inland Revenue Tax notification
  • State Pension or Benefits book/notification letter

List B – Proof of Address

  • Current UK/EU photo Driving Licence, if not used in A (the old, paper licences and new photocard licences are accepted)
  • Current Local Authority Tax bill
  • State Pension or Benefits book/notification letter
  • Local Authority rent card or tenancy agreement
  • Most recent Mortgage statement
  • Bank, Building Society or Credit Union statement or passbook
  • Utility Bill (not mobile) from the last three months
  • Home or motor insurance certificate
  • NHS Medical card

List C – Proof of Ownership

  • Most recent Mortgage statement
  • Home or motor insurance certificate
  • Solicitors letter confirming house purchase/deeds/land registration

List C – Probate

If you are acting as a representative of an estate, we require the following:

  • Grant of Probate (if a will was left)
  • Letter of Administration (if no will was left)
  • Individual identity evidence from List A & B for the personal representative, either executor or administrator

Limited Company

If you are acting as a representative of a UK Company, we will also require ALL of the following:

  • Certificate of Incorporation
  • Articles of Association
  • Memorandum of Association
  • Latest Annual Return or Confirmation Statement, with details of current company officers
  • If offshore, nominee director declaration and a general Power of Attorney
  • Individual identity evidence from List A and B for all individuals or entities with 25% or more of the shares/or voting rights in the company

Offshore Company

If you are acting as a representative of an Offshore Company, we will also require the following:

  • Certificate of Incorporation
  • Articles of Association, Memorandum of Association, Latest Annual Return with details of current company officers, Share Certificate(s) showing the Ultimate Beneficial Owner OR Certificate of Incumbency
  • If the shares are owned by another company, repeat steps above for the holding company
  • Nominee director declaration and/or general Power of Attorney (if applicable)
  • Individual identity evidence from List A and B for all individuals or entities with 25% or more of the shares/or voting rights in the company

Trust

If you are acting as a Representative of a Trust we require the following:

  • Trust deed
  • List of trustees
  • List of beneficiaries

Individual identity evidence from List A & B for all individuals with a vest interest in 25% or more of the capital and/or those who exercise control over the trust.