In recent news, the Financial Intelligence Centre (FIC) issued a warning concerning South Africa’s compliance with Financial Action Task Force (FATF) directives. The focus of concern lies primarily within the legal profession and real estate sectors, where non-compliance with reporting requirements poses a threat to the country’s removal from the FATF grey list.

Christopher Malan, the FIC’s executive manager for compliance and prevention, highlighted the risk associated with ongoing non-compliance, particularly concerning Directive 2A and Directive 2B. These directives emphasize the identification and investigation of high-risk entities, crucial steps in combating money laundering and ensuring better governance both locally and globally.

The current situation reveals a concerning lack of compliance, with only 43% of property practitioners and 50% of legal practitioners, including conveyancers, submitting their risk and compliance returns (RCRs) to the FIC. This non-compliance raises questions about the effectiveness of existing measures and underscores the importance of proactive adherence to regulatory requirements.

Real estate agents play a pivotal role in upholding compliance standards within the industry. As representatives of their agencies, agents need to inquire about their agency’s compliance status and take proactive steps to ensure adherence to FIC obligations. By prioritizing compliance, real estate agents not only contribute to safeguarding the integrity of the industry but also demonstrate their commitment to ethical business practices and regulatory standards.

In conclusion, ensuring compliance with FIC directives is not only a legal obligation but also a fundamental responsibility for real estate agents. By staying informed, proactive, and vigilant, agents can uphold the highest standards of integrity and contribute to fostering a transparent and trustworthy real estate environment in South Africa.