What and Why? 

AML stands for Anti Money Laundering, and as from 1 January 2019 all real estate agents are required to verify the identity of our clients.  This only refers to vendors and not for those purchasing property.

Why has this new legislation come into play?   

Up until now it has been very easy to use property to launder money.   Property is being used to disguise a money trail, using it to shift profit, doing renovations and additions for cash, and/or using the home to commit crimes.  

We therefore are now required to verify a vendor when selling their property.  This can simply be done by taking a copy of their original passport and bank statement on our phone and filling out a form.   

It becomes a little trickier when a vendor has their home in a Family Trust.  In these situations we are required to verify the source of the funds or source of wealth as well as getting their identity and address details. This means verifying how the Trust originally got the funds to purchase the property (in some cases this might be a long time ago!), and if you do not have a copy of your Trust Deed, we will require your solicitor to obtain a copy for you so that we can check through the Trust Deed and other trust documentation.

If you as a vendor are unwilling to allow us to obtain this information then it becomes a little tricky – if this is the case and you are unwilling to provide that information to us you can ask your lawyer to complete this and forward through verification to us, with your permission.  Note that this will however incur legal costs.

If you have any further queries regarding these new laws please do not hesitate to let me know and I will assist in any way I can.

Jane Mather

021 339 623