Statutory requirements: details of financial intelligence act explained by IEA Estate agents to report suspicious deals GRAHAM NORRIS Property Editor THE estate agency industry now has clarity on what it will have to do to comply with the Financial Intelligence Centre Act, says Bill Rawson, national president of the Institute of Estate Agents.

Although the act was bought into operation last year, it could not be fully implemented until regulations had been issued. They have now been published and, from February 3, estate agents will be obliged to report 'suspicious and unusual transactions' to the Financial Intelligence Centre in Pretoria. From June 30, they will be required to verify the identities of all clients before doing business.

 Each estate agency has to develop internal procedures to ensure that all its staff comply with the act and regulations, and have a compliance officer to make sure that everyone follows them and keeps the necessary records. Rawson says the regulations are very detailed and require some study.

Every estate agency principal should obtain a copy from the Government Printer: ask for Government Gazette 24176 dated December 20, 2002.

The IEA will hold workshops for its members. With effect from February 3, every estate agent will be obliged to report to the FIC any 'suspicious and unusual transaction' that they come across in the course of their work.

The report should preferably be submitted online through the FIC website (www.fic.gov.za), but it may also be faxed or delivered by hand. An 8-page report form has been designed and published in the Government Gazette (No 24176 dated December 20, 2002).

From June 30, estate agents will also be required to verify clients' identities before doing business with them. This will entail verifying the full names, date of birth, ID or passport number, tax registration number and home address of everyone involved in the transaction.

If a company is involved, the estate agent will have to verify its registered name, its number, its head office and branch addresses, and its tax and VAT registration, as well as the identities of its representatives and any shareholders who control 25% or more of the voting rights.

This will not, however, be necessary if the company is listed on a stock exchange. Similar details will be required for any close corporation or trust involved. Verification does not stop at the actual client - if a client is represented by a third party, that third party's identity must be verified, too.