PROPERTY COMPLIANCE
Various techniques are used by property-related money launderers such as the over or under value of property prices when compared to market-related pricing , canceling property transactions prematurely , or paying rent in advance , and then requesting a refund , or purchasing properties using complex company or trust structures to conceal the identity of the launderer .
Several risk factors should be considered by estate agents when dealing with their clients . Where considerable deposits are paid for the purchase of properties or high-value property is being purchased , more stringent measures should be implemented to ascertain the source of funds for the transaction and also whether the amount appears to be within the apparent standing or economic profile of the client and their stated income and that the
transaction makes economic or business sense .
“ Estate agents , being predominantly involved in selling , buying and renting properties on behalf of owners and purchasers , are generally seen as the first point of contact in a property transaction and therefore it is vital that potentially illicitly gained funds are identified at this stage .”
192 AUGUST 2022 SA Real Estate Investor Magazine