Quantity Surveyors and AML Compliance: The Client Due Diligence Requirements You Cannot Ignore
Quantity surveyors who provide professional services in connection with property transactions are designated persons under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010. The designation carries the same compliance obligations as those placed on solicitors and accountants — and it is enforced in the same way.
The Society of Chartered Surveyors Ireland has updated its AML guidance for member practices. What the guidance requires, and what the Act requires, are not always the same thing. This article addresses the statutory obligations directly.
Designation
Which QS Services Trigger Designated Person Status
Under Schedule 2 of the CJ(MLTF)A 2010 (as amended), designated person status applies to any person who, in the course of business, provides services involving the preparation or execution of transactions for a client in connection with the buying or selling of real property, the managing of client money or assets, or the organisation of contributions for the creation or management of companies.
For quantity surveyors, the services most likely to trigger the designation are:
- —Cost planning and financial management services provided as part of a property acquisition or development transaction;
- —Contract administration where client funds are managed, certified, or directed through the practice;
- —Employers' agent services on development schemes where the QS is acting in a capacity that involves the financial structuring of the transaction;
- —Providing professional services to a developer, investor, or purchaser whose primary purpose is a property transaction.
Providing cost estimates for an existing owner-occupier undertaking renovation does not typically trigger designated person status. The trigger is the connection to a property transaction — buying, selling, or structuring the financial arrangements of a development.
Identification Standards
Multi-Source Identification: The Same Standard as Solicitors
The identification and verification standard under s.33 of the 2010 Act is the same for all designated persons regardless of profession. A QS practice is not afforded a lighter-touch standard than a law firm. The obligation is to establish identity and verify it using documents, data, or information from a reliable and independent source.
For individual clients, verification requires at minimum a current government-issued photographic identity document and an independent address verification document dated within 90 days. A driving licence addresses photographic identification only — it must be supplemented with a second document from an independent source for address. A document issued by the client themselves, or by an entity controlled by the client, does not satisfy the independence requirement.
For corporate clients, the obligation extends to identifying and verifying the ultimate beneficial owner — defined as any natural person holding or controlling more than 25% of shares or voting rights, or otherwise exercising control over the entity. For development SPVs and holding structures, this frequently requires tracing through multiple layers of corporate ownership. The Central Register of Beneficial Ownership of Companies and Industrial and Provident Societies (RBO) is a starting point, but it is not a substitute for independent verification — the registered information is self-reported and may be incomplete or inaccurate.
Source of Funds
Source of Funds vs Source of Wealth: The Distinction That Matters
Source of funds and source of wealth are related but distinct inquiries, and the obligation to document each arises in different circumstances.
Source of funds refers to the specific origin of the money being used in the transaction or engagement — the funds from which the client is paying for the development, acquisition, or construction project. A QS practice must establish the source of funds for every designated-person engagement.
Source of wealth refers to the origin of the client's overall net worth — how they accumulated their financial position. Source of wealth verification is required under enhanced due diligence, which applies to all high-risk client relationships.
High-value construction contracts and enhanced due diligence
Enhanced due diligence is mandatory under s.37 of the CJ(MLTF)A 2010 for clients assessed as high-risk. For QS practices, high-value construction contracts — particularly those involving private investors, offshore-controlled entities, or clients with complex corporate structures — are likely to attract a high-risk rating on the basis of transaction complexity alone. Source of wealth verification must be completed and documented before services are provided, not after.
Documentation & Upcoming Obligations
Documented Thought Process — and What Changes in July 2027
The SCSI's AML guidance for member practices is clear that the compliance record is the documented thought process, not the outcome. A file that records 'CDD completed — Low risk' without the underlying analysis provides no protection on inspection.
Every designated-person engagement must have a documented file note explaining: how the client was identified and verified; what sources were used for verification; what risk rating was assigned and why; whether any factors required escalation; and what ongoing monitoring is in place. This note is a compliance record, not an administrative formality.
From July 2027, Regulation EU 2024/1624 (the AML Single Rulebook) applies directly across all Member States without national transposition. One of the most significant changes for QS practices is the mandatory independent audit function: all designated person firms — regardless of size — will be required to have their AML framework independently reviewed. This obligation does not exist under the current CJ(MLTF)A 2010 framework for smaller practices. The 14-month window before July 2027 is the time to build the structures that will satisfy that audit.
Immediate Action Checklist
Four tasks. Each addresses a specific compliance requirement under the CJ(MLTF)A 2010.
- —Map all current and prospective engagements against the Schedule 2 trigger conditions. Any service involving property transactions, client fund management, or financial structuring of a development requires CDD.
- —For every designated-person engagement, produce a written CDD file note: identity documents obtained, verification sources used, risk rating with narrative, and ongoing monitoring trigger points.
- —For corporate clients, trace and verify the ultimate beneficial owner. The RBO register is a starting point only — independent verification is required. Record the verification process and outcome.
- —Begin building the AML framework documentation — written procedures, staff training records, and risk assessment methodology — that a July 2027 independent audit will require. Do not leave this for 2027.
The SCSI guidance does not replace the statutory obligations — it supplements them. The standard applied on inspection is the CJ(MLTF)A 2010, not the professional body guidance.
Oibrio monitors AML designation obligations for Irish construction professionals so your practice is inspection-ready.