REPORTING SUSPICIOUS BEHAVIOUR
As one of the seven compliance obligations, the requirement for institutions to submit regulatory reports to the FIC is vital to combat money laundering and terrorist financing. Accountable institutions listed as Schedule 1 in the FIC Act, which includes estate agents, are obliged to submit report the following regulatory reports to the FIC: cash transactions of R24 999, 99 and above (cash threshold reports); where transactions arouse suspicion or appear unusual (suspicious or unusual transaction reports) and when the prospective client is linked to terrorism and related activities (terrorist property report). It is important to note that institutions must be registered with the FIC (another compliance obligation) before they can begin to submit reports.
Estate agents and other accountable institutions are at the transaction coalface. They have direct access to information on their customers, their transactions, customer behaviour and other information. This unique insight enables accountable institutions to provide detail-rich regulatory reports if and when necessary. The FIC uses the information in the reports submitted to it to develop financial intelligence which is shared with competent authorities for their follow up action and investigations. In submitting regulatory reports, estate agents can help in the fight against crime and contribute to a safer, a more stable business environment and economic growth. Over and above this, being vigilant and reporting helps prevent the estate agent’s own business from being targeted for abuse by criminals. As a first step, all estate agents must register with the FIC. Registration can be done online, via www.fic.gov.za. Once the registration process is complete, estate agents will be able to submit reports to the FIC. Not knowing about the legal obligation to register and report to the FIC as an estate agent is not an acceptable excuse. If you are an estate agent and you have not yet registered, then do so today by accessing the FIC’s website on www.fic.gov.za.