Skip to main content

The Lloyds Warning That is Equally Applicable to Conveyancers

By
Lloyds Banking Group has warned brokers that the increase in paper work associated with the Mortgage Market Review changes may increase the risk of fraud and they need to remain vigilant.

In the same way that brokers are faced with new administrative burdens the same is also true of conveyancers who in recent times face burdensome compliance obligations  and ever changing CML Handbook requirements. All this at a time of increased volume as the UK property market bounces back to pre-recession levels.

Criminals are stealing identities and using false documentation to take out loans using the victim's name and details. Also on the rise are cases of vendor fraud where the fraudsters have successfully sold other people’s homes. Their "modus operandi" is to get access to properties first by renting them and then acquiring fake documents in the real owner’s name and attempting to sell the flat or house.

Only this weekend I was talking to an owner of an estate agency in London who had come across two cases at his branch in the last year of vendor fraud where an absent owners identity was stolen and the property was sold to an innocent buyer.

But it’s not just vendor fraud on the increase. Fraudsters are expected to continue to produce more sophisticated fake documents while brokers and lenders embed changes brought about by the new regulations.

Peter Curran, director of strategic partnerships at Lloyds Banking Group said: "Spotting fraud is an ongoing challenge particularly in the face of increased paperwork."

He said: "Think about the plausibility, validity and authenticity of the documents - simply collecting paper will not help stop fraud."

Lloyds said brokers need to be mindful of the challenges presented by increased volume and must not get swept away by a rise in demand for mortgage finance if they are not able to effectively manage the risks it will bring. Surely the same is true of conveyancing.
Labels:

Comments

Post a Comment

Popular posts from this blog

Argie Bargie over Home Information Packs

By
In response to a question from Conservative MP David Amess on what methodology would be used to use to evaluate the effectiveness of the Home Information Pack programme, Communities and Local Government Minister Ian Austin was involved in heated argument. The wording of the debate ( reported in Hansard ) makes interesting reading, so I thought I would share it with you : Mr. David Amess (Southend, West) (Con): What methodology his Department plans to use to evaluate the effectiveness of the home information pack programme; and if he will make a statement. Mr. Andrew Mackay (Bracknell) (Con): What methodology his Department plans to use to evaluate the effectiveness of the home information pack programme; and if he will make a statement. Mr. David Jones (Clwyd, West) (Con): What methodology his Department plans to use to evaluate the effectiveness of the home information pack programme; and if he will make a statement. The Parliamentary Under-Secretary of State for Communities and Local...
Post a Comment
Read more

Paperwork is not a shield: Why your SRA aml audit demands more than just a dusty manual

By
The Solicitors Regulation Authority continues its aggressive crackdown on financial crime with a recent fine issued against Whiteheads Solicitors (Staffordshire) Ltd . This decision serves as a stark reminder that the regulator is looking far beyond simple paperwork during an SRA aml audit . The firm was fined 2,584 GBP plus 600 GBP in costs following an investigation into its compliance with the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. While the firm had a firm-wide risk assessment and general policies in place, the SRA identified critical failures at the matter level. Key compliance failures included: Failure to conduct adequate client and matter risk assessments . The SRA found a consistent pattern where the firm failed to sufficiently assess client matter risk levels as required by Regulation 28. Inadequate scrutiny of source of funds . In one specific property transaction, the firm failed to properly investigate the origin of funds provided by ...
Post a Comment
Read more

The High Street Practitioner’s Guide to Surviving the FCA

By
For a sole practitioner or the MLRO in a small high-street firm, "AML compliance" often feels like just another mountain of paperwork standing between you and your actual work. When you are juggling a heavy conveyancing caseload, a sensitive probate matter, and the day-to-day survival of your practice, the last thing you need is a new regulator with a reputation for being data-heavy and "zero-tolerance." But the ground is shifting. As the Financial Conduct Authority (FCA) takes over AML supervision from the SRA, the "high-street way" of doing things—relying on long-standing local reputations and gut instinct—is being replaced by a requirement for hard, documented proof. The end of "I’ve known them for years" In a small town, you often act for the same families for generations. You know their business, their parents, and their reputation. Under the old mindset, that felt like enough. Under the FCA, it isn’t. T...
Post a Comment
Read more