AN online anti-money laundering system for estate agents and related organisations has been launched in the North-East.

Technology company Veriphy, in Newcastle, has developed a custom-made electronic solution to help companies deal with new legislation.

From December 15, estate agents will be inspected by trading standards officers to ensure they are performing money-laundering checks on their clients.

They will also be inspected to ensure they have an anti-money-laundering policy in place and are retaining records of checks for five years.

Veriphy's new system, called Veriphy, simplifies checks, making it easier for companies to adhere to the legislation.

Veriphy managing director George Stark said: "Come December, not only will these checks need to be made but, for the first time, compliance with the legislation will be rigorously policed.

"Penalties for not complying include unlimited fines and up to two years' imprisonment, even if no money laundering has taken place."

Veriphy has gone from strength to strength since it launched this year, with more than 100 organisations using the company's services, including solicitors, accountants, financial firms and lenders.