His Majesty’s Revenue and Customs (HMRC) has imposed significant financial penalties on estate agency businesses for breaches of anti-money laundering (AML) regulations. In its most recent update, covering the period from April to September 2025, HMRC revealed that estate agents accounted for a substantial portion of the fines issued across all sectors under supervision.
The regulatory action underscores authorities’ ongoing focus on compliance within the property industry, as the government continues its efforts to combat financial crime and ensure the integrity of the UK property market.
HMRC Issues New Fines for AML Breaches
Between April and September 2025, HMRC issued 369 penalties totalling £1,881,237 across all supervised business sectors. Estate agency businesses were subject to 170 of these penalties, with fines amounting to £835,842.
The figures were published in HMRC’s latest register of enforcement actions, providing transparency on businesses not meeting AML requirements. A significant portion of the fines related to operations without requested anti-money laundering supervision.
Out of the total penalties, 332 were issued for businesses trading without appropriate registration. This highlights continued challenges with registration compliance in the sector.
Estate Agents Account for Largest Proportion of Penalties
Estate agencies represented the largest single group of businesses fined during this period. The enforcement activity demonstrates HMRC’s increased scrutiny on estate agents and property businesses in relation to money laundering risks.
Accountancy service providers were also notably affected, receiving 134 penalties at a combined value of £513,930. In addition, money service businesses and other regulated sectors faced targeted sanctions as part of HMRC’s effort to ensure broad compliance across the UK’s financial landscape.
Regulatory Requirements for Estate Agency Businesses
Estate agents in the UK must register with HMRC for AML supervision and must implement effective systems and controls designed to prevent money laundering and terrorist financing.
The law requires both estate agency businesses (EABs) and letting agency businesses (LABs) to be supervised, with HMRC’s Economic Crime Supervision teams leading monitoring and enforcement.
Failure to fulfil these obligations can lead to severe financial and reputational consequences. The regulatory framework was introduced to prevent the exploitation of the UK property sector by criminal activity, with estate agents acting as a front line in national and international anti-money laundering efforts.
Voluntary Disclosure and Reduced Penalties
HMRC confirmed that businesses voluntarily disclosing their breaches may receive reduced penalties. This approach aims to encourage early engagement and transparency, underscoring the value of self-reporting and corrective action.
An HMRC spokesperson said, ‘Anti-money laundering supervision is a vital line of defense for businesses against criminal exploitation.
We are committed to helping businesses protect themselves and we take action against the minority who fail to fulfil their legal obligations, as these penalties clearly show.’
Sector-wide Enforcement Activity
While estate agents accounted for the largest value of fines, other sectors are also subject to comprehensive scrutiny. The range of enforcement demonstrates the authorities’ broad commitment to upholding AML standards across the regulated community.
The publication of enforcement actions is intended to serve as both deterrent and guidance within the industry, helping businesses identify compliance shortcomings and avoid similar infractions in future periods.
Final Summary
HMRC’s latest enforcement activity signals a determined approach to anti-money laundering compliance within the UK property sector. The £835,842 in fines levied against estate agents in just six months serves as a warning to the wider industry and reflects ongoing expectations for registration, monitoring and reporting.
With voluntary disclosure recognised through reduced penalties, the regulatory message remains clear: proactive engagement is essential.
Estate agency professionals are encouraged to review their current compliance measures regularly for further guidance or tracking of regulatory updates, use of tools such as the Pie application may provide helpful support.
