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Question Title: Money Laundering
| Question: 341 |
| I have just been talking to a lady who is looking to rent a flat in the town. She and her husband, both British subjects, live predominantly in Tenerife but she needs to spend sometime here. She has been told by two other local agents that they cannot let a property to her because of the new money laundering regulations. Is this really the case?
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| Answer: |
| The new money laundering regulations have been introduced to comply with the new European Directive and the Proceeds of Crime Act 2003 and became effective on 1 September 2003. All businesses are required to comply with the Act, and monitor any activities or transactions where it might appear that there is an intention to defraud, conceal or otherwise support a money-laundering operation. However, there seems to be nothing in the example given to suggest that this simple letting transaction would appear to be suspicious to any reasonable person. In contrast, had the couple wanted to ask the agent to help them invest a substantial sum of money, received from abroad, into investment properties, then it would be reasonable for the agent to make identity checks, prove nationality, and record address details before entering into any arrangement. (see LUJ Oct 2003, p10).
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References:
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Pages:
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Hyperlinks:
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Letting Update Journal |
Apr 2004 page 10 |
letting-update-journal.html
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Letting Update Journal |
Oct 2003 page 10 |
letting-update-journal.html
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For more information, discuss on the Forum
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