Statutory requirements: details of financial intelligence act explained by IEA Estate agents.

Posted On Sunday, 12 January 2003 02:00 Published by
Rate this item
(0 votes)
Statutory requirements: details of financial intelligence act explained by IEA Estate agents to report suspicious deals GRAHAM NORRIS Property Editor THE estate agency industry now has clarity on what it will have to do to comply with the Financial Intelligence Centre Act.

Statutory requirements: details of financial intelligence act explained by IEA Estate agents to report suspicious deals GRAHAM NORRIS Property Editor THE estate agency industry now has clarity on what it will have to do to comply with the Financial Intelligence Centre Act, says Bill Rawson, national president of the Institute of Estate Agents.

Although the act was bought into operation last year, it could not be fully implemented until regulations had been issued. They have now been published and, from February 3, estate agents will be obliged to report 'suspicious and unusual transactions' to the Financial Intelligence Centre in Pretoria. From June 30, they will be required to verify the identities of all clients before doing business.

 Each estate agency has to develop internal procedures to ensure that all its staff comply with the act and regulations, and have a compliance officer to make sure that everyone follows them and keeps the necessary records. Rawson says the regulations are very detailed and require some study.

Every estate agency principal should obtain a copy from the Government Printer: ask for Government Gazette 24176 dated December 20, 2002.

The IEA will hold workshops for its members. With effect from February 3, every estate agent will be obliged to report to the FIC any 'suspicious and unusual transaction' that they come across in the course of their work.

The report should preferably be submitted online through the FIC website (www.fic.gov.za), but it may also be faxed or delivered by hand. An 8-page report form has been designed and published in the Government Gazette (No 24176 dated December 20, 2002).

From June 30, estate agents will also be required to verify clients' identities before doing business with them. This will entail verifying the full names, date of birth, ID or passport number, tax registration number and home address of everyone involved in the transaction.

If a company is involved, the estate agent will have to verify its registered name, its number, its head office and branch addresses, and its tax and VAT registration, as well as the identities of its representatives and any shareholders who control 25% or more of the voting rights.

This will not, however, be necessary if the company is listed on a stock exchange. Similar details will be required for any close corporation or trust involved. Verification does not stop at the actual client - if a client is represented by a third party, that third party's identity must be verified, too.


Publisher: Weekend Argus
Source: Weekend Argus

Most Popular

Thavhani City set for more growth in 2021 as its Motor City and medical developments accelerate

Feb 15, 2021
Thavhani_City_Locality_Layout
Thavhani City mixed-use urban precinct in Thohoyandou, designed to be the future economic…

It’s cheaper to buy than to rent a home in 2021

Feb 08, 2021
Carl_Coetzee_BetterBond_CEO
If the past year has taught us anything, it is how important our homes have become to us.

Brand new residential development in La Lucia 60% sold through Pam Golding Properties

Feb 15, 2021
Kent_Exterior
Such is the consistent high demand for centrally located, well-priced residential…

Optimistic budget masks a number of key risks

Feb 25, 2021
Maarten_Ackerman_Chief_Economist_and_Advisory_Citadel
Finance Minister Tito Mboweni’s budget has been received very positively, as demonstrated…

Relief at no increase in personal tax, says Dr Andrew Golding

Feb 25, 2021
Andrew_Golding_Golding_PropertyGroup
Relief at no increase in personal tax, says Dr Andrew Golding, chief executive of the Pam…

Please publish modules in offcanvas position.