Real estate deals are made in cash and/or through a financial institution as loans or withdrawals. This intersects the regulated AML/CTF sector of financial institutions that monitor the potential of money laundering through real estate.
as a registered agent, you need to put anti-money laundering/counter terrorism financing (AML/CFT) measures in place if you
Real estate deals involve huge cash transactions that conceal information of ownership and source of funds. This allows shell companies and proceeds of crime to be laundered through real estate, exposing agents to risks of being exploited. Various types of transactions involving third parties, deals above market value; or business relationship with clients based overseas or in a sanctioned country; are some issues real estate sector deals with.
By following requirements of KYC, and enhanced due diligence of “know your buyer” and “ultimate beneficial owner”, real estate agents can remain compliant. Scrutiny of high-cash transactions, investigation of deals that are attempted but not completed, and declaration of the source of funds, are other ways agents can avert being used as conduits for money laundering/terrorism financing (ML/TF).
The ability to buy real estate using cash, allows illicit funds to be integrated into the legitimate economy. Other factors like artificially enhancing real estate value with renovations, and lack of transparency in transactions and ownership structures, makes real estate sector vulnerable to ML/TF. By addressing these gaps, the real estate sector can avert money laundering, identity frauds, scams, and abnormal inflation of the property.
Real estate agents are expected to lay the groundwork for a risk-based compliance:
Once you have set up your compliance programme, you need to put the systems in place to ensure the programme is being followed.
Ongoing compliance involves:
Our PEP and sanction screening service will help you reach your compliance requirements.
Our details scan reports provide you with an overview of in-depth information on potential risks to your organisation.
We provide access to multiple data sources to meet the varying requirements of users.
We update the information for all of our data sources daily to provide you with up-to-date relevant data.
Save the time manually checking names by using our batch scanning feature to scan bulk files of names simultaneously
Our service is straight-forward and easy yo use, making compliance easy by simplifying processes.
Perform due dilligence by assigning risk, determining true matches and recording decisions in the NameScan dashboard.
Conduct further research into potential matches and risks to your organisation through various sources.
Use our API to integrate with your existing systems to automate the screening process.
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