Carrying out AML checks on Housing Developers and Housing Associations can seem more complex than verifying an individual client. The guidance below provides an overview of the customer due diligence (CDD) steps typically required.
You should always refer to your agency's AML policy and seek further guidance from your Money Laundering Officer (MLO) or an independent compliance adviser if you are unsure how to proceed.
Housing Developers
Housing developers are typically registered companies and can usually be found on Companies House. They will normally be either a:
- Private Limited Company (Ltd)
- Public Limited Company (PLC)
The customer due diligence (CDD) requirements are generally straightforward.
For both Ltd and PLC companies, you should:
- Confirm that the individual instructing you is authorised to act on behalf of the company.
- Obtain a Companies House Report.
Private Limited Companies (Ltd)
For a Private Limited Company (Ltd), you should also verify the identities of the company's Persons with Significant Control (PSCs).
Public Limited Companies (PLC)
Public Limited Companies (PLCs) do not usually have named PSCs, as their shares are publicly traded. HMRC generally considers PLCs to present a lower money laundering risk, so obtaining a Companies House Report and confirming the authority of the instructing individual will usually satisfy the CDD requirements.
Housing Associations
Housing Associations are typically registered as limited companies, but they may also be registered with the Financial Conduct Authority (FCA) as a registered society and/or with the Charity Commission as a registered charity.
When acting for a Housing Association, you should:
- Confirm that the individual instructing you is authorised to act on behalf of the Housing Association.
- Obtain the organisation's registration details from the relevant register, such as Companies House, the FCA, or the Charity Commission.
- Identify the appropriate individuals responsible for the organisation. This may include:
- The Persons with Significant Control (PSCs) listed on Companies House.
- The Trustees listed on the Charity Commission register.
- Senior officers, such as the Chief Executive, Finance Director, or Company Secretary.
- Carry out appropriate customer due diligence (CDD) on the individuals identified
More Complex Business Structures
Some businesses have more complex ownership structures, where one company is owned or controlled by another. In these cases, additional due diligence may be required.
Where the Person with Significant Control (PSC) is another company, you should:
- Obtain a Companies House Report for the client company.
- Obtain a Companies House Report for the company listed as the PSC.
- Identify the PSCs of that company and carry out customer due diligence (CDD) on them.
- If the PSC is another company, continue following the ownership chain, obtaining a Companies House Report for each company until you identify the ultimate beneficial owners.
Where the ownership structure is particularly complex, you have two options:
- Verify the identities of the individuals named as the ultimate PSCs at the top of the ownership structure; or
- If this is not practical due to the remoteness or complexity of the ownership chain, verify the identities of at least two directors of your client company instead.
If you remain uncertain at any stage, seek advice from your MLO before proceeding.