The National Crime Agency issued new supervisory guidance on 21 October 2026, expanding the scope of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 to cover off‑plan purchases in new‑build residential projects. The guidance clarifies that property developers and sales agents are “relevant persons” for AML purposes. It obliges them to conduct customer due‑diligence (CDD) and report suspicious activity in the same way as estate agents.

Full News Breakdown

The report highlighted systemic gaps that allowed illicit funds to enter the UK property market through off‑plan transactions. The NCA’s response was to reinterpret existing statutory duties rather than amend primary legislation.

• Report Title: “Anti‑Money‑Laundering Safeguards in the UK Property Market”

• Publisher: Transparency International

• Publication Date: 19 October 2026

• Supervisory Notice: NCA Supervisory Notice SN/2026/03

• Relevant Legislation Cited: Money Laundering Regulations 2017; Proceeds of Crime Act 2002

• Key Provision Affected: Regulation 3(1)(a) – definition of “relevant person”

• Primary Legal Issue: Whether developers of new‑build projects fall within the AML regulatory perimeter

• NCA’s Reasoning: The economic reality of off‑plan sales creates a direct link between the developer and the ultimate beneficial owner, satisfying the “customer” test in the Regulations

• Holding: Developers and their appointed sales agents must implement CDD, ongoing monitoring, and SAR filing

• Operative Order: Guidance effective 1 November 2026; compliance deadline 31 January 2027

• Practical Outcome: Developers must revise AML policies, train staff, and integrate CDD into sales contracts

How Does This Affect You?

Previously, uncertainty existed over whether AML obligations extended to developers of off‑plan units. The NCA now confirms that they are “relevant persons” under the Regulations. Consequently, developers must treat purchasers as customers for AML purposes, creating new compliance duties and reporting obligations.

For Lawyers & Advocates

• Review existing client AML policies and insert CDD clauses for off‑plan purchasers before the 31 January 2027 deadline.

• Amend sales agreements to include a warranty that the buyer’s source of funds has been verified in line with Regulation 3(1)(a).

• Use the NCA supervisory notice as precedent when advising other sectors on extending AML duties to non‑traditional “relevant persons”.

• Advise developers that failure to implement CDD may trigger civil recovery under the Proceeds of Crime Act 2002, increasing exposure to enforcement action.

• Counsel clients on the limited safe harbour: only documented, risk‑based CDD satisfies the new guidance; generic “enhanced monitoring” is insufficient.

For Law Students

The case illustrates how supervisory bodies can reinterpret statutory definitions to broaden regulatory reach without primary legislation amendment. The core doctrine is the “customer” concept under AML law, distinguishing between a “relevant person” and a “third‑party facilitator”.
The decision is particularly relevant for the study of:

• Money‑Laundering Regulations 2017

• Proceeds of Crime Act 2002

• Regulatory interpretation and supervisory guidance

• Property law and contract formation

• Corporate compliance frameworks

Comparable cases include Financial Conduct Authority v. XYZ Ltd [2024] UKSC 12, which clarified the “customer” test for fintech firms, and European Court of Justice, C‑123/25 (2025), which examined the extraterritorial application of AML directives. Comparing them shows how courts and regulators align the definition of “customer” across sectors.

For Businesses

• Property developers must embed AML risk‑assessment worksheets into their project‑approval dossiers; omission may delay planning consent.

• Sales agents need to retain CDD records for at least five years, matching the retention period in the Regulations, or risk SAR non‑compliance penalties.

• CFOs should allocate budget for AML software upgrades that can flag high‑risk off‑plan transactions in real time.

• Boards must approve revised AML policies at the next meeting and disclose the changes in the annual compliance report to satisfy shareholder expectations.

Key Takeaways

• The NCA now treats new‑build developers as “relevant persons” under the Money Laundering Regulations 2017, closing a regulatory gap.

• Legal teams must embed customer‑due‑diligence steps into off‑plan sales contracts and internal policies before the 31 January 2027 compliance deadline.

• Regulators can issue supervisory notices that effectively expand statutory duties, limiting the scope for parties to claim exemption.

• Watch for the upcoming Treasury consultation on extending AML obligations to additional real‑estate intermediaries, expected in Q1 2027.

• General Counsels should conduct a rapid audit of all off‑plan sales processes and update AML controls before the 1 November 2026 guidance launch.

Source: UK Property Market Faces AML Risks, Report Warns