U.K. Hits Online Realtor Purplebricks With Money-Laundering Fine

(Bloomberg) --

The U.K. tax authority has fined online realtor Purplebricks Group Plc. nearly 267,000 pounds (about $351,000) for violating rules on money-laundering.

Real estate agencies are required under U.K. regulations to carry out checks on customers to make sure their business isn’t being used to launder money, and to report suspicious activity. The penalty was imposed on Purplebricks for “failures in having the correct policies, controls and procedures, conducting due diligence and timing of verification,” according to a statement on the HM Revenue & Customs website.

“Money laundering funds serious and organized crime and costs the U.K. economy billions of pounds every year,” an HMRC spokesperson said in an emailed statement. “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.”

The fine relates to activity from 2018, a Purplebricks spokesperson said by email. Since then the company has “significantly improved” its compliance procedures, the spokesperson said.

The Times reported the fine earlier.

©2020 Bloomberg L.P.