1. Financial Intelligence - the next phase 2. IEA Area Committees and contact list



Financial Intelligence - the next phase IMPLEMENTATION of the next phase of the Financial Intelligence Centre Act is due to take place on Monday 30 June. That leaves estate agencies with only four weeks in which to gear themselves up to meet the demands that will be placed on them. What are the demands? By 30 June, each estate agency must: • establish procedures for verifying clients' identities • establish a record-keeping system for keeping ID verification documents on file for five years • produce written internal rules, i.e. a manual, on these procedures and system • train all its agents and staff to comply with the procedures and system • appoint a compliance officer to make sure that everyone complies. The penalty for not taking these steps is a mere R1 million fine or 5 years in prison. We had hoped that the Estate Agency Affairs Board would have published its guidelines in good time, but apparently they are unlikely to be ready before the end of June. The industry therefore has to find other sources of guidance and information in the meantime. The obvious starting point is the Act itself, and the Regulations and Exemptions which were published in December 2002 (Government Gazette 24176). However, many estate agents may think they are as "clear as mud". The Act tells them what to do, the Regulations tell them how to do it, and the Exemptions tell them that they don't have to do some of it after all! In practice, implementing the FIC requirements ought not to be too much of a problem for an estate agency with established property listing and record-keeping systems, because in many cases the agent can verify the client's identity when listing the property for sale or to rent. However, if the client is a company or a CC or a trust, the process will be more complicated as the agent will have to verify the identity not only of the organisation itself but also of its managers, representatives, major shareholders and, in the case of a trust, its beneficiaries and even its founder. But the compliance officers - who are to be the in-house watchdogs - may have their work cut out for them in making sure that everyone complies with the rules. Many estate agents, even if they work for companies, have minimal contact with their offices and admin staff, and keep their paperwork to a minimum. They are now going to have to change those habits and pay more attention to paperwork and handing in documents for filing. IEA Western Cape has already held some workshops for its members, and will be holding more in due course. Phone the IEA at 021 531 3180. IEA Area Committees - supporting members close to home The IEA (Western Cape) covers a large area. To give our members support as close to home as possible, we have six areas, each of which is run by a part-time, unpaid, area committee. Each committee works directly with IEA members in its area, and is only a phone call away when members need help. What do the area committees do? They promote the IEA in their areas. They present seminars and arrange networking functions for their members. Because they are focused on specific areas, they are able to give advice on local issues such as municipal regulations on displaying showhouse signs. For members whose ambitions include a IEA regional directorship, service on an area committee is the essential starting point. At least one year's area committee service is needed to qualify for nomination as a director. Every IEA member should be in regular contact with his/her area committee. By its very nature, estate agency work is area-based, and it is at area committee level that the IEA provides the most direct service to its members. Area Committee Contacts Garden Route: Tim Kirby 044 873 2519 Helderberg: Peter Venter 021 856 5060 Northern Suburbs: Hanlie Vivier 021 930 4104 Overstrand: Martin Hansen 021 876 3190 Peninsula: Linda Casserley 021 417 2600 Saldanha Bay: Virgil Allen 02271 3 1996