It is not clear at this late stage in the development of
the
Home
information pack (HIP) implementation whether money
laundering rules and due diligence checks should apply.
The
Law
Society has been querying this key issue with the
Department of
Communities & Local Government but in keeping with
many other concerns that professional bodies have
regarding HIPs, there remains uncertainty.
The Law Society is lobbying
for an exemption for
HIPs from the money laundering rules. They have
taken this approach because they consider the HIP
process to be outside of the operational principles of
the 2003 Regulations. There is no transferring of funds
or property at the time the pack is prepared. This
should allow for an exemption it is argued.
If the exemption for
solicitors is not agreed, then there will be an
increased burden of work for the profession and no
assurance that estate agents or their
regulators
will take similar steps. There would be a very
unbalanced playing field.
