Nationwide seminars to guide estate agents



The Estate Agency Affairs Board (EAAB) is conducting nationwide seminars to guide estate agents in fulfilling the obligations they have under the new Financial Intelligence Centre Act. The Act, parts of which have already been implemented, has been formulated to combat money laundering and to assist the South African Revenue Service (SARS) with tracking tax evaders. It establishes the Finance Intelligence Centre and places duties on accountable institutions such as estate agencies and banks to report suspicious transactions. The EAAB, as the supervisory body of the industry, has played an active role in the formulation of the Act and will continue to protect the industry by monitoring the effects of its implementation. "This is a detailed and complicated act to interpret," said Stanley Moshidi, CEO of the Estate Agency Affairs Board. "The Board is holding nationwide seminars to provide information and advice to estate agents regarding their new duties. Moshidi said that a manual would soon be available, setting out the EAAB's guidelines for agents. The Act states that estate agents must establish and take reasonable steps to verify their clients ID. It states that agents must report suspicious transactions to the Financial Intelligence Centre and must set up internal administration procedures to meet the regulations under the Act. These include keeping detailed records of all transactions, setting up internal training to educate staff about the requirements of the Act, creating systems to monitor compliance with the Act and to appoint an internal compliance officer. "The Board must emphasise that there is no need for agents to over-react and become suspicious of every buyer or seller. Suspicion should not arise based merely on appearance, race or nationality," said Moshidi. Over 500 agents attended the Board's first lecture in Cape Town recently to learn about their role under a new law. Article: 1 April 2003 Rodney Hayter The Property Professional On-line Edition 63 email: hayter@icon.co.za