5 August 2025 – The investment in property provides a stable, high-value and secure asset, which makes this sector particularly vulnerable to money laundering and terrorist financing (ML and TF).

To add to the risk of criminal exploitation, property transactions by their nature allows for the integration of illicit funds into the legal economy, while allowing for criminals to derive an income from their investment and allows for camouflaging of the origin of the illicit proceeds through property sales or rental income.

It is therefore important for property practitioners to be vigilant against potential criminal abuse and report suspicious and unusual transactions and behaviour to the Financial Intelligence Centre (FIC). This is in line with their Financial Intelligence Centre Act (FIC Act) obligations which are geared towards combating ML and TF.

Property practitioners must first register with the FIC and obtain their organisational identification (ORG ID) number before they can fulfil their FIC Act obligations. If you are a property practitioner and have not yet registered with the FIC, please do so urgently on the FIC website.
The FIC has issued public compliance communication 56 (PCC 56) which provides specific guidance for property practitioners.

Suspicious and unusual transaction reporting obligation

Property practitioners, as accountable institutions, must file regulatory reports on suspicious and unusual transactions and activities (STRs and SARs). Information contained in STRs and SARs is then analysed by the FIC for the production of financial intelligence reports. These are in turn shared with competent authorities for use in investigations, prosecutions, and asset forfeiture.

These reports must be filed without delay but no later than 15 days from a person becoming aware of the suspicious and unusual transaction or activity. These reports must be filed regardless of the amount of money involved. Refer to the property risk assessment for examples of indicators of potential ML, TF and PF, which could raise a suspicion.

For high-value properties, property practitioners must be particularly vigilant when conducting business that deals in high-value property, as this is recognised internationally as being attractive to criminals. There is no obligation for a property practitioner to prove that the funds involved in the transaction are linked to a crime, the report can be based on a mere suspicion.

Targeted financial sanctions obligations

Targeted financial sanctions (TFS) involves restricting access to funds and financial services on countries, goods and services, or persons and entities designated by the UN Security Council (UNSC). These sanctions aim to prevent the financing of terrorism and proliferation of weapons of mass destruction. 

Meeting FIC Act obligations on targeted financial sanctions consist of three steps:

Scrutinising client information

A property practitioner must scrutinise their client information to determine whether the client, beneficial owner, person acting on behalf of the client, person on whose behalf the client is acting or party to a transaction is a designated person or entity on the targeted financial sanctions (TFS) list. Client information must be scrutinised regardless of the risk assigned to the business relationship or single transaction. PCC 44A is a useful resource to view guidance on TFS.

The FIC hosts the TFS list on its website that property practitioners can search against, for free. The TFS list reflects the current identity particulars of persons and entities contained in notices published by the Director of the FIC, in terms of section 26A of the FIC Act.

Freezing of property

In terms of section 26B, no one may provide financial or other services to persons or entities designated on a TFS list. Estate agents are prohibited from establishing a business relationship or conducting a single transaction with designated persons or entities. This may include not releasing any property to the designated person or entity. This is referred to as an “asset freeze”. Property practitioners must have processes in place to ensure that ‘freezing’ occurs immediately where it is in the possession or control of a designated person’s property.

Section 28A of the FIC Act requires accountable institutions must:
• File a TPR report with the FIC if the business knows that it possesses, or controls property linked to terrorism or designated persons and entities (see FIC Guidance Note 6A).
• Not continue with the transaction when a TPR has been submitted to the FIC.
• Be reported without delay and no later than five days from becoming aware.