3 Feb 2023

IMPORTANT CHANGES TO ANTI-MONEY LAUNDERING & PREVENTION OF TERRORIST FINANCING CODE

DUE DILIGENCE REQUIREMENTS UNDER THE PROCEEDS OF CRIME ORDINANCE AND ANTI-MONEY LAUNDERING REGULATIONS AND CODE

On 18th November 2022 changes were made to the Anti-Money Laundering and Prevention of Terrorist Financing Code as regulations as follows:

  1. New section 13 (A) of the Anti-Money Laundering and Prevention of Terrorist Financing (Amendment) (No.4) Code 2022 reads:

A financial business engaged in realtor activities shall, in relation to a transaction for the sale of real property, conduct customer due diligence on both the buyer and seller of the property even if the realtor acts for only one of the parties to the transaction.

  1. The Anti-Money Laundering and Prevention of Terrorist Financing (Amendment) Regulations 2022 amend the definition of realtor activities and replaces it with:

“Realtor” means a professional that operates within the real estate sector AND is involved in transactions for a client concerning the buying and selling of real estate.

The effect of these new provisions means that all realtors are now required to perform due diligence on sellers and purchasers in real estate transactions, notwithstanding the realtor represents only one of the parties.

For more information and assistance contact Misick & Stanbrook’s real estate team.

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