Becoming compliant as a property deal sourcer might seem daunting, but it’s essential to stay within legal boundaries and build trust with your clients. Here’s a breakdown of key compliance requirements:

• Anti-Money Laundering (AML) registration

Registering for AML supervision is a legal requirement for all deal sourcers. As Hav explains, “Money laundering can occur through property transactions, where illicit money is ‘cleaned’ through investments in property. By registering for AML supervision, deal sourcers contribute to preventing financial crimes, protecting the property market.” Compliance includes staying informed and maintaining AML protocols, which are essential to avoid potential legal issues.

• AML policies and procedures

Policies and procedures ensure you and your team follow best practices consistently. “It might sound tedious, but documenting these processes – from reporting suspicious activity to understanding money-laundering methods – is essential for compliance,” says Hav. With Sitefinder, these processes are streamlined, allowing deal sourcers to handle the paperwork quickly and effectively.

• Customer Due Diligence (CDD)

CDD, also known as Know Your Customer (KYC), involves verifying clients’ identities and ensuring they are legitimate. Hav explains, “Due diligence checks are not just good practice; they are legally required. Whether it’s verifying buyers and sellers or storing secure records, these steps build a trustworthy foundation for your sourcing business.”

• Professional Indemnity (PI) Insurance

All compliant deal sourcers must have PI insurance. Unlike standard estate agents, deal sourcers need specialised coverage that protects against any potential issues with property deals. Hav notes, “You wouldn’t drive without insurance. Think of PI insurance as your professional ‘safety net,’ protecting you from potential liability.”

• GDPR and Data handling

The importance of GDPR compliance cannot be overstated. “Data security is paramount in deal sourcing,” Hav says. “Handling clients’ personal information responsibly demonstrates professionalism and builds trust.” GDPR compliance includes following protocols for collecting, storing, and sharing data, ensuring client confidentiality.

“Compliance might seem overwhelming, but with the right tools and support, it’s a straightforward process that provides immense value to your business.”