QUESTIONS AND ANSWERS FOR ESTATE AGENTS
Q:
Do I have to be registered with the FIC?
A:
Yes, an estate agent is deemed to be an accountable institution as listed in Schedule 1 of the FIC Act.
Q:
By when should I comply with the amendments to the FIC Act?
A:
As an estate agent, you should already be working to comply with the new requirements. After April 2019, if you are found to be non-compliant by the Estate Agency Affairs Board and FIC, the normal enforcement process will commence. This may involve remedial action and/or penalties.
Q:
If I am found to be non-compliant and penalised, can I appeal this decision?
A:
Yes, you can appeal the decision. Depending on who issued the penalty (FIC or the Estate Agency Affairs Board), the decision through the Estate Agency Affairs Board appeal process or the FIC adjudication process.
Q:
Can I outsource my FIC compliance function to a third party, such as a consultant?
A:
Yes, you may outsource your FIC compliance function. However, the ultimate responsibility for ensuring that you and your business meet the FIC requirements still lies with you as the estate agent
Q:
If one of my property transactions looks suspicious, can I still proceed with the transaction before submitting a suspicious or unusual transaction report (STR) or a suspicious activity report (SAR) to the FIC?
A:
Yes, you can still proceed with the transaction unless through your customer due diligence process you have identified that the customer is on an applicable sanctions list or the transaction is linked to terrorist activities (as per section 28A of the FIC Act).
Q:
Can I let my client know that I have reported them to the FIC?
A:
Under no circumstances may you inform your client you have reported them to the FIC, this is called “Tipping Off” and is an offence.
Q:
What happens if one of my property transactions looks suspicious, and I do not submit a suspicious or unusual transaction report (STR) or a suspicious activity report (SAR) to the FIC within the stipulated time lines?
A:
Failure to report these types of transactions, is an offence. You may still submit the report to the FIC with an explanation as to why it was not submitted in time.
Q:
Is my identity protected if I submit a report to the FIC?
A:
Yes, section 38 of the FIC Act makes provision that any person submitting information via cash threshold, terrorist property or suspicious or unusual reports to the FIC will have their identity protected. This person is also not compelled to testify at criminal proceedings.