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Financial Crime & Mortgage Fraud Hub

At PMS, we work closely with all of our lender partners and would like to share information on the latest mortgage fraud trends and some hints and tips to help keep your advisers and business safe.

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Financial Crime newsletter

Following your feedback we've launched our Financial Crime newsletter , to bring you regular insights to the latest developments, trends and updates from across the market, to help you keep your business and your customers safe from financial crime.

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Income and employment fraud for residential business icon

Income and employment fraud for residential business

This area accounts for the biggest percentage of declines on residential transactions. First Time Buyers generally have a larger percentage of frauds in this area compared to all buyer types. See the link below for some hints and tips on income checks that can be done.

View some hints and tips
Staged income and employment fraud for BTL business icon

Staged income and employment fraud for BTL business

Due to a heavier reliance in personal income in the BTL market space following the tax changes in 2016 and the PRA underwriting standards in 2017, this area is also one where income and employment fraud tend to be a hot topic.

View some tell-tale signs
Solicitor impersonation fraud icon

Solicitor impersonation fraud

There has been instances where the client has had an email purporting to be the solicitor which asks them to pay the deposit into a specific bank account but the solicitors emails has been infiltrated. The client pays the money into this account unknowingly and the deposit is lost. Please make your clients aware of this and ask them to check by phone with the solicitor that the details are correct.

Provide clients with this link
Property hijack icon

Property hijack

Fraudsters will act as tenants and go through the motions to rent out a property using fake ID documents and it will normally present as a capital raising re-mortgage on an unencumbered property. Once approved, one of the tenants will proceed to change their name by deed poll to match the owner’s name, which will be stated in their tenancy agreement. With the owner’s name and matching fake documents, the rogue tenant can then go to an estate agent to put the property on the market and request to sell it. Your clients can protect their property using the Land Registry Property Alert Service, which provides an alert if anyone tries to deal with the property. The alert would be sent to the client by email if anyone carries out an official search or makes an application in relation to your property.

Set-up property alerts
Scheme abuse icon

Scheme abuse

Although not top of the list, this does still happen, usually on either a BTL application for a residential purchase or vise versa.

Read more
Introducer fraud icon

Introducer fraud

Fraudulent introducers, (some might previously been advisers and have been taken off lender panels) will approach an adviser or firm to offer to introduce business to them. If an introducer approaches you with an opportunity that sounds to good to be true, be aware, it probably is.

Download hints and tips
Tax evasion icon

Tax evasion

There is a relatively new corporate offence of the Failure to Prevent the Facilitation of Tax Evasion which came into effect on 30th September 2017. A common example is the identification/suspicion that a customer may not be declaring rental income for tax purposes. Failing to identify and report the facilitation of financial crime (tax evasion) could have serious consequences, such as a removal from the lender’s panel and/or prosecution with the relevant agencies.

Read more
Deposit fraud icon

Deposit fraud

The most common stage for money laundering to occur in a mortgage advice process is when dealing with a customer’s deposit. In this part of the process you are dealing with large sums of money and you must know where that money is coming from in order to satisfy yourself that it is not the proceeds of crime. There should be lots of considerations made to the plausibility of where that money has come from, any increased risk such as involvement in a cash business or funds coming from a high risk country. All of these should help build a picture of the customer and their wealth.

Download checklist

Remember, if you suspect the proceeds of crime are being used, you should submit a Suspicious Activity Report to the National Crime Agency.

Submit a report

If you suspect fraud, you should submit a report to Action Fraud.

Submit a report

Financial crime in the news

False and altered documents drive increase in mortgage fraud

Read more

What are the current mortgage fraud challenges?

Download

Is money laundering alive and well in the UK property market?

Download

Protect Against Fraud

Download

Fraud: Protecting your business

Download

Santander for Intermediaries Q&A

Download

Working with you...Check before you submit

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Get support today

We’ve teamed up with Bankhall, the largest supplier of support services to directly authorised firms in the UK, to support you to protect your firm and customers against financial crime.

Their team of experts will work to design and implement tailored approaches to guard you against financial crimes, including fraud, corruption and misconduct.

To find out more about how Bankhall can help you protect and future-proof your business please contact 

 

 

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PMS is a trading style of Premier Mortgage Service Limited a company registered in England and Wales with number 5011650. Registered office: Aviva, Wellington Row, York, YO90 1WR. PMS is an appointed representative of Sesame Limited.

Mortgage Strategy 2021 shortlist
PMS Mortgage Club of the Year Finalist MI Awards 2019
PMS Mortgage Club of the Year 2019
Money Facts 2021
Stephanie Charman -Finalist Business Leader Specialist Distributer
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PMS is a trading style of Premier Mortgage Service Limited a company registered in England and Wales with number 5011650. Registered office: Aviva, Wellington Row, York YO90 1WR. PMS is an appointed representative of Bankhall Support Services Limited.

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