The three month compulsory registration period for Estate Agents to register with FICA has recently ended on 28 February 2011. Since that date the requirements of the Financial Intelligence Centre Act 38 of 2001 is applicable to all estate agents.
In short The Act prescribes certain duties to all accountable institutions (including estate agents).
The areas that will mainly affect the operations of estate agents are the following:
- 1. Duty to identify clients.
- 2. Duty to keep records.
- 3. Period for which records must be kept.
- 4. Duty to report suspicious and unusual transactions.
- 5. Duty to report cash transactions above the prescribed limit (Currently R25,000).
- 6. Duty to report transfers of money to and from the Republic.
- 7. Formulation and implementation of internal rules.
An accountable institution that fails to comply with the provisions of the act is guilty of an offence. A person convicted of an offence is liable to imprisonment not exceeding 15 years or to a fine not exceeding R10,000,000.