Purplebricks hit with fine after money-laundering breach

Online estate agent Purplebricks has been fined more than £260,000 for breaching laws on money laundering.

HM Revenue & Customs said the Solihull headquartered company has been penalised for “failures in having the correct policies, controls and procedures, conducting due diligence and timing of verification”.

The company cannot appeal against the £266,793 fine.

Under 2017 money-laundering rules, estate agencies and buying agencies are responsible for carrying out checks on the financial background of their clients to stop money being laundered through the buying and selling of property.

Purplebricks featured in HMRC’s latest list of businesses for the tax year 2019 to 2020 that have not complied with the 2017 regulations.

In its 2019 report, Purplebricks stated that it was in discussions with HMRC about certain aspects of “non-compliance with AML legislation”.

Then, in its 2020 annual report, the company, without revealing the sum of the penalty, said: “Regrettably, the group incurred a fine from HMRC for historical breaches of certain aspects of the UK’s anti-money laundering legislation. We have since improved our antimoney laundering controls.”

An HMRC spokesperson said: “Money laundering funds serious and organised crime and costs the UK economy billions of pounds every year. The money laundering regulations are a vital line of defence against that.

“We’re here to support businesses in protecting themselves from criminals who would prey on their services.

“That also means taking action against the minority who fail to meet their legal obligations under the regulations and in doing so invite abuse.”