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- November
Additions to the FICA rulings will place estate agents on the line when it comes to cash payments
Posted: 25th October 2010
South African estate agents will find in the coming months that they are expected to be particularly diligent when it comes to checking on the details surrounding any cash payments of R25,000 or higher.
Pointing this out recently, Lanice Steward, MD of Anne Porter Knight Frank, said that an addendum to the FICA (Financial Intelligence Centre Act) now makes it essential that certain businesses receiving a cash payment of over R25,000 have to verify the identity of the payer (if necessary checking with his bank and the South African Police) and have to inform SARS of the transaction.
“The revised act,” said Steward, “specifically states that attorneys, motor dealers and casinos are to be diligent in this respect.”
The amendments to the act, she said, are aimed at preventing ‘hot’ or dubious money from being laundered via a property or other transaction.
The term “cash transactions”, added Steward, includes the receipt of domestic and foreign notes and coins as well as travellers’ cheques, but it excludes cheques, electronic fund transfers and bank transfers for the simple reason that in these transactions the source can usually be easily traced.
Estate agents complying with the ruling, said Steward, are expected to do so by electronic report and must establish with FICA their login details. Each branch of an agency is required to get its own login credentials with FICA and to report without going via its head office.
Steward commented that the Financial Intelligence Centre Act, which was introduced in 2002, has always stipulated that any suspicious money transactions or client identities have to be reported to them.
“This is a very serious obligation,” she said, “and two facts have over the years become abundantly clear. The first is that failure to do so is a criminal act and can lead a jail sentence or a heavy fine. Secondly, proof of ‘hot’ money or any other irregularity is not essential. The agent is under obligation to pass on any suspicious details he has to FICA and leave further investigation to them. If he neglects his duty in this respect he is likely to be held responsible for aiding and abetting a criminal act.”
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za
Pointing this out recently, Lanice Steward, MD of Anne Porter Knight Frank, said that an addendum to the FICA (Financial Intelligence Centre Act) now makes it essential that certain businesses receiving a cash payment of over R25,000 have to verify the identity of the payer (if necessary checking with his bank and the South African Police) and have to inform SARS of the transaction.
“The revised act,” said Steward, “specifically states that attorneys, motor dealers and casinos are to be diligent in this respect.”
The amendments to the act, she said, are aimed at preventing ‘hot’ or dubious money from being laundered via a property or other transaction.
The term “cash transactions”, added Steward, includes the receipt of domestic and foreign notes and coins as well as travellers’ cheques, but it excludes cheques, electronic fund transfers and bank transfers for the simple reason that in these transactions the source can usually be easily traced.
Estate agents complying with the ruling, said Steward, are expected to do so by electronic report and must establish with FICA their login details. Each branch of an agency is required to get its own login credentials with FICA and to report without going via its head office.
Steward commented that the Financial Intelligence Centre Act, which was introduced in 2002, has always stipulated that any suspicious money transactions or client identities have to be reported to them.
“This is a very serious obligation,” she said, “and two facts have over the years become abundantly clear. The first is that failure to do so is a criminal act and can lead a jail sentence or a heavy fine. Secondly, proof of ‘hot’ money or any other irregularity is not essential. The agent is under obligation to pass on any suspicious details he has to FICA and leave further investigation to them. If he neglects his duty in this respect he is likely to be held responsible for aiding and abetting a criminal act.”
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za
Posted by: Anne Porter Properties
