What Are Pooled Client Accounts?
With various crucial roles in managing properties, an essential aspect of the operations of a letting agency is the use of Pooled Client Accounts (PCAs). These accounts consolidate multiple individual client accounts into one single centralized business account. Utilising PCAs simplifies financial transactions by allowing use of a single account number and bank balance, while also housing all of your transactional history within one area.
Information on exactly what belongs to whom within the PCA needs to be tracked. This is done through the agency’s accounting records rather than within the banking system. Though previously done through physical ledgers and paperwork, as we move forward with the technology available to letting agents, Property Management CRM systems have played a major role in ensuring the compliance to Anti Money Laundering (AML) rules is maintained.
Difficulties of Pooled Client Accounts
Despite the advantages of PCAs, many letting agents have faced hurdles over recent years. Various banks claim that these accounts contravene anti-money laundering (AML) rules, resulting in the closure of these accounts or stopping them from being opened at all. These claims from banks have been backs by and increase in AML convictions over recent years.
Without a client account, letting agents become ineligible for Client Money Protection (CMP), then causing the risk of illegal trading. Illegal trading can result in a £30,000 fine from Trading Standards. Propertymark, a leading professional body in the property sector, has claimed that banks misinterpret anti-money laundering regulations concerning PCAs, leaving letting agents who do not manage high-value properties with monthly rental incomes of £10,000 or more without accounts. Letting agents also report banks insisting on Customer Due Diligence (CDD) procedures as outlined in the Money Laundering Regulations, when not all of them are legally required to carry out such extensive checks.
The alternative to pooled client accounts is having separate bank accounts for each client. This however may bring a great deal of administrative burden due to the array of bank information that would then need to be used and the multi-levelled reporting of transactional history. This also brings the potential of higher banking fees to a letting agency.
Conclusion
Our in depth accounting features are tailored to every situation and our hands-on support team are only a phone call away. Regardless of your situation, whether you are dealing with a pooled client accounts or separate accounts, you can enhance your experience with FCP Agent Online Banking. Through this, RENT+ can communicate directly with your bank account or bank accounts, importing & exporting transactions at just the click of a button.
Email us at support@focus-property.co.uk or call us at 01865766241 to learn more about how RENT+ and FCP Agent Online Banking can revolutionize your property management experience.
