Agents want clarity ahead of FICA changes

Staying up to date on the latest developments in the property market is essential, so be sure to check out the Private Property website on a regular basis for important updates on all matters, including the Financial Intelligence Centre (FIC) Amendment Act, which is set to come into effect in April this year and could impact how you buy property in Glenvista.

This matter has been in the spotlight in recent months, with growing tensions amongst estate agents who have said that there is not enough clarity, and that guidance on implementation has not be provided to them. The changes are set to make transactions a lot more complex, and this is a concern considering the current state of the property market.

Jill Lloyd, who is an agent for Lew Geffen Sotheby’s International Realty, says that there are numerous stipulations and mechanisms involved, and pointed out that this will certainly come with increased time and 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.

There is a valid reason behind the decision for change, with one of the main aims being to stamp out the likes of money laundering, corruption and terrorist financing. The optimism of it being effective is due to the fact that nobody will be exempt from the rules.

However, it places a lot of responsibility on agencies to do due diligence, which means that they have to collect a lot more data and find out where the money for transactions is coming from. Considering the current concerns, it will be interesting to see how the matter unfolds with the implementation deadline around the corner.