Recently, the Anti-Money Laundering and Prevention of Terrorist Financing Code underwent changes on November 18th, 2022, with the inclusion of a new section 13(A). This amendment requires financial businesses engaged in realtor activities to conduct customer due diligence on both the buyer and seller, regardless of whether the realtor represents only one of the parties involved in the transaction.
The Anti-Money Laundering and Prevention of Terrorist Financing (Amendment) Regulations 2022 also changed the definition of “Realtor” to a professional operating within the real estate sector involved in transactions related to buying and selling real estate for clients.
These new regulations require all realtors to perform due diligence on sellers and purchasers involved in real estate transactions, even if the realtor only represents one of the parties. This increased scrutiny is meant to prevent money laundering and terrorist financing, which could occur in real estate transactions.
As a result, realtors must be aware of the due diligence requirements and comply with them when involved in real estate transactions. By doing so, they can help protect themselves, their clients, and the broader community from the risks associated with financial crime.
