The FIC Act lists estate agents –as defined in the Estate Agency Affairs Act, 1976 (Act 112 of 1976) – as accountable institutions and requires them to be fully compliant with the FIC Act. Why are Property Practitioners listed in the Act as accountable institutions?
The property sector has been identified as being at risk of being abused by money launderers. This sector has been used to hide funds and as a vehicle to help criminals introduce their proceeds into the financial system.
The property space has the potential for criminals to put into practice all three aspects of typical money laundering activity: placement, laying and integration. Furthermore, they can clean or hide large amounts of money in a single transaction. The purchase of a dwelling, plot or building for a large sum of money, for example, may not raise too many alarm bells. For these reasons, estate agents can become easy targets for criminals wanting to use them to launder their illicit funds. Given that estate agents are familiar with their industry, their clients’ behaviour and their habits, these industry experts are also best suited to identify when certain behaviour is suspicious or unusual.
Central to being listed under Schedule 1 of the FIC Act as accountable institutions, estate agents are required to fulfil seven obligations to achieve compliance with the FIC Act.
To ensure you are on top of your game, take this 30-day online course.
FIC Compliance Course includes:
Video – Meumann & White Attorneys have supplied an hour video simply explaining the format that you must take when registering as a stakeholder, and how to stay compliant.
RCMP Template – Is taken from the Authorities website, please always ensure that you upload the latest template from their site in case changes have been made
Add-on Resource Material – A collection of templates to help you adapt them to your agency
Quiz – You must achieve 70% minimum compliance in this online course to achieve a PropAcademy Certificate of Competence