In a key statement released last week, the Financial Intelligence Centre (‘the FIC’) urges designated non-financial businesses and professions (‘DNFBPs’), including estate agents and legal practitioners, to urgently comply with their reporting obligations to support South Africa’s efforts in exiting the grey list.
Although the FIC has acknowledged the positive strides made by accountable institutions, it notes that certain critical concerns remain partially addressed, particularly regarding DNFBPs’ understanding of their own risk and compliance levels.
Currently, 70% of the country’s approximately 9 000 estate agents have submitted their Risk and Compliance Returns (‘RCRs’), which provide an accurate view of sectors’ understanding of their money laundering and terrorist financing risks. Notwithstanding clear improvements over the last 12 months, the FIC identifies estate agents as a high-risk sector due to relatively low RCR submission rates.
To enhance risk assessments and support risk-based supervision in alignment with regulatory requirements, the FIC emphasises that all outstanding RCRs must be submitted urgently, especially during the April–June 2025 quarter. In the absence of sufficient data, the FIC may consider non-compliant businesses as high risk for money laundering and terrorist financing activities.
Stressing the importance of achieving a 100% submission rate, the FIC notes that non-compliance by a portion of the real estate sector undermines the progress made by those who have fulfilled their obligations and ultimately delays South Africa’s removal from the grey list.
Estate agents and other DNFBPs are reminded that the RCR platform remains open on the FIC’s website and must be completed in line with Directives 6 and 7, which were issued in 2023.
Submit now to avoid penalties and other administrative sanctions.
For sound legal guidance, contact our compliance specialists at compliance@stbb.co.za today. Let us help you navigate your RCR obligations with ease.
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