Financial crime within the property sector is on the rise and the stats are alarming. According to data from Apex Bridging, there were a total of 1.1 million cases of property fraud between April 2022 and March 2023, a 15 percent increase on the previous year, while a CIPFA study found that of 80,000 cases of fraud in UK local authorities, property fraud accounted for 71 percent.
The fraudulent activity can range from individuals falsifying mortgage applications to complex organised schemes involving multiple properties and false identities and the consequences can be devastating for individuals, businesses and the economy as a whole, not to mention the lack of trust it builds in the industry.
It’s no surprise therefore that the property sector is under increasing pressure from regulators (and the ever-evolving legislation they must adhere to) in the battle against dirty money. Regulators are imposing crippling fines for any compliance breaches, which is concerning considering that 1 in 5 regulated businesses are unaware of the penalties associated with non compliance and that’s not forgetting the significant reputational damage that comes with non-compliance.