Tension over upcoming FICA changes

If you have not heard about the Financial Intelligence Centre (FIC) Amendment Act as yet and have been planning on buying or selling property in Brakpan, then you should certainly brush up on the matter, with the implementation deadline fast approaching.

The Private Property website not only offers listings of properties around the country, but provides updated information on matters that concern the market, with regular input from industry experts. The FICA Amendment Act is set to be implemented in April, but as it stands, there is concern that the changes could further complicate property transactions.

A number of estate agents are growing concerned as they say that there is not enough clarity being provided on the matter, and also say that there has been no guidance in regards to implementation of the changes.

Jill Lloyd, who is an agent for Lew Geffen Sotheby’s International Realty, believes that the broad scope of stipulations and mechanisms will come at a major cost, with transactions set to take more time and come at an increased cost.

“At the moment we have more questions than answers and smaller or low-commission agencies especially could really struggle to achieve compliance by 1 April 2019. We urgently need more information if we are to abide by the law as well as service our clients to the proper standard,” she said.

Part of the reason for these changes is to help fight against money laundering, corruption and terrorist financing. To do this, agencies are going to be given more responsibility when it comes to getting to know their clients, as well as how and where the money for transactions has come from.

The heavier load in terms of data collection and due diligence is concerning for a number of smaller agencies, so it will be interesting to see what impact it has when the changes come into play in April.