The Royal Institution of Chartered Surveyors has called for the introduction of a mandatory, legally recognised licensing scheme for all estate agents in Britain.
This call was prompted after anti-money laundering campaigners proposed harder sanctions against estate agents who assist rogues to hide their assets.
Expulsion
Transparency International said that all professional bodies should remove licences from individuals and companies found to be aiding corruption.
However presently, agents do not have to be a member of any professional body and could theoretically continue to practice following expulsion. Currently, The National Trading Standards Estate Agency Team are only allowed to ban estate agents.
In the wake of the leak of millions of documents detailing over 200,000 offshore entities set up by Panama-based law firm Mossack Fonseca, Transparency International has called for stronger action.
‘The Government should establish more effective administrative sanctions on professional enablers by encouraging professional bodies to withdraw licences from those implicated in such cases, in addition to prosecuting those who are personally involved,’ the firm stated.[1]
Risks
Head of advocacy and research for Transparency International, Rachel Davies, said, ‘if corrupt individuals are allowed to continue to buy up luxury property and enjoy life in the UK, then the Government risks its credibility in leading efforts to tackle corruption on the global stage.’[1]
In the wake of a television programme entitled From Russia With Cash, which showed estate agents dealing with an apparent corrupt Russian buyer, the NAEA and RICS called for an investigation into the findings.
RICS calls for mandatory licensing for agents
Investigation
Members of both firms were involved in the dealings, with an actor playing the part of the ‘businessman.’ After the calls from Transparency International, a spokesperson for RICS said, ‘RICS demands the highest standards from our members and where those high standards fall short, we will use the full weight of our regulatory powers to take action.’[1]
‘A full and thorough investigation into those named by the From Russia With Cash programme is currently ongoing. While it would be inappropriate to comment on an ongoing case, we will be making a full statement once our investigation has concluded. RICS will always take stringent action against our own members that are found guilty of wrong-doing.’
‘However at this present time, UK estate agents are not legally required to be licensed and many are not members of a professional body. We are calling for the introduction of a mandatory recognised licence for all estate agents,’ the report concluded.[1]
[1] http://www.propertyindustryeye.com/new-call-professional-bodies-counter-money-laundering/