PropList Blog
The Fifth Directive

Today, the Fifth Directive on Money Laundering has come into being.  This increases the requirement on everyone within the commercial property arena in ensuring that Know Your Client (KYC but also known as CDD Customer Due Diligence) are conducted not just for sales or lettings involving a premium but also for any letting (commercial or residential) of one month or more at a rent of 10,000 or more during part of the term or equivilant to the monthly rental.

The details, from RICS, the Law Society, Revenue and Customs has been publicised for many, many months but it still seems that this part of the regulations has crept up and surprised at lot of people.

At PropList we don't propose to re-iterate the full set of conditions but feel that it's a good time to remind everyone of both the main clause that is wrong footing everyone and also include a link to the legislation here.

So if you are involved in rentals at above 10,000 per month, we'd draw your attention to Part 3 of the regulations:
 

“(7A) A letting agent must also apply customer due diligence measures in relation to any transaction which consists of the conclusion of an agreement for the letting of land (within the meaning given in regulation 13(7))—

       (i)  for a term of a month or more, and

       (ii) at a rent which during at least part of the term is, or is equivalent to, a monthly rent of 10,000 euros or more.

 (7B) The letting agent must apply customer due diligence measures under paragraph (7A) in relation to both the person by whom the land is being let, and the person who is renting the land."

PropList are also committed to improving accesability to KYC / CDD checks, and we'll be issuing updates from our Sales and Marketing Director Sam Empson on how we can assist you going forward.

If you want to catch-up earlier, then please email [email protected] or [email protected]