Real Estate Investor Magazine South Africa May 2013 | Page 9

FINANCIAL INTELLIGENCE CENTRE ACT

ADVERTORIAL

Estate Agents
Must Report
Suspicious Transactions

T

Examples of transactions that could
be suspicious within the estate agency
environment include:

he Financial Intelligence Centre (the FIC)
reminds estate agents of their obligations
to report any suspicious or unusual
transactions which they may be aware of in their
businesses.
The FIC is the national centre for developing
and disseminating financial intelligence to law
enforcement and intelligence agencies, the South
African Revenue Service, and other local and
international agencies.

•

The FIC uses the financial information it receives
to identify the proceeds of unlawful activities, with
a view to combat money laundering activities and
the ?nancing of terrorism. Suspicious and unusual
transaction reports (known as STRs) are an essential
element in helping the FIC to identify suspected
criminal activity and the potential proceeds of crime.

•

The obligation to submit STRs to the FIC, in terms
of section 29 of the Financial Intelligence Centre Act,
No. 38 of 2001, as amended, applies to all businesses
in South Africa, including estate agents.

•
•

The obligation is imposed on any person who:
Carries on a business
Is in charge of a business
Manages a business
Is employed by a business.
While STRs are being submitted by some businesses,
the FIC is concerned that some estate agencies are
not meeting their obligations in terms of ?ling STRs.
This requirement applies to both estate agents trading
as sole proprietors as well as group estate agents.

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Paying a large cash deposit without disclosing the
source of the funds
Poor explanation for the early redemption of
mortgages
The using of false identity when buying or selling
property
The buyer insists that the property be registered
in the name of an unrelated third party
The buying price is paid by an unidenti?ed third
party
The buying price is paid into a foreign bank
account
Inconsistent or weak reasons for paying cash
Use of cash coupled with a speedy sale
A purchase made without the property being
viewed
Immediate resale of the property
Any other activity which does not make business
sense.

Submitting an STR does not mean that you cannot
continue with the transaction or that you will lose
your commission on the deal.
The FIC Act protects persons who submit reports
to the FIC. In addition to protection against legal
liability, the identities of those involved in making a
report to the FIC remain con?dential.
Failure to comply
Failure to report suspicious or unusual transactions
could lead to action being taken against the

offending estate agency and employees of the
estate agency, amounting to imprisonment of up to
15 years or a ?ne of up to R100 million.
By reporting suspicious and unusual transactions to
the FIC, estate agents are helping in the ?ght against
crime. This will contribute to a safer and more stable
business operating environment, encouraging and
improving investor con?dence.
How to submit STRs
Visit the FIC’s website - www.?c.gov.za – and click
on the Reporting button.

For further information
call
0860 222 200 or
e-mail us at
?c_feedback@?c.gov.za