The Financial Intelligence Centre (FIC) has published the final version of a public compliance communication (PCC) on how Schedule 1 of the Financial Intelligence Centre Act (Fica) applies to property practitioners.
Item 3 of Schedule 1 to Fica lists an estate agent, as defined in the Estate Agency Affairs Act, as an accountable institution. The Estate Agency Affairs Act was repealed and replaced by the Property Practitioners Act with effect from 1 February 2022.
The Property Practitioners Act defines “property practitioners” broadly and includes persons who perform activities that fall under the now-repealed definition of “estate agent”. In addition, property practitioners include certain auctioneers, managing agents, business brokers, trustees, bond or mortgage originators and bond brokers, property developers, people who sell or market time share or fractional ownership, and homeowners’ associations.
The draft PCC was published in July for public comment. Click here to download the FIC’s responses to the comments it received.
Read: Fica amendment proposed to take account of Property Practitioners Act
The FIC published the final version, PCC 56, on 14 November.
PCC 56 sets out the FIC’s view that the broader category of people who are now property practitioners do not automatically fall within the ambit of Item 3 of Schedule 1 as accountable institutions, unless the person performs an activity that is equivalent to that of an “estate agent” as defined in the now-repealed Estate Agency Affairs Act.
Practically, this means that anyone registered as an estate agent before February 2022 will remain an accountable institution in terms of Item 3. Anyone performing the activities of an estate agent, although they may be referred to as a property practitioner after February 2022, will also be considered as an accountable institution in terms of Item 3.
