Real Estate Board signs MoU with Financial Intelligence Unit
Supplied Content
Suva, Fiji, April 25, 2017
The Real Estate Agents Licensing Board (REALB) has signed a Memorandum of Understanding (MoU) with the Fiji Financial Intelligence Unit (FIU) to enhance the level of professionalism and integrity within the real estate industry in Fiji.
Imperative move
FIU Acting Chief Executive Officer Virisila Tuimanu said that the MOU will establish an effective framework to detect and investigate breaches under the relevant laws related to money laundering and terrorist financing offenses in Fiji.
She said that the need to partner with FIU arose as some real estate activities have been linked to money laundering activities.
“Whilst REALB is the regulatory agency for the real estate industry in Fiji, it is also necessary that REALB partners with important stakeholders such as FIU, which is primarily responsible for anti-money laundering laws to ensure financial transaction transparency in the market,” she said.
RELAB is a statutory agency responsible for granting of real estate agents’ licence, salespersons’ and branch managers’ approvals in Fiji.
It also has the disciplinary powers to suspend and cancel licence if the current laws and regulations have been breached.
Ensuring compliance
FIU Director Razim Buksh said that the MOU will assist the FIU to effectively coordinate compliance and regulate the real estate agents under the Financial Transactions Reporting Act (FTR Act).
Real estate agents have similar responsibilities like the commercial banks and other non-bank financial institutions under the FTR Act to ensure that their services are not abused for conducting fraudulent and money laundering transactions.
A real estate transaction can be used to disguise the illegal origin of funds by introducing the proceeds into the financial system. Once illicit funds are invested in the real estate market, the proceeds are disguised as legitimate wealth in any subsequent property transactions.
Mandatory obligation
Mr Buksh said that reporting of suspicious clients and their transactions to the FIU by all financial institutions including the real estate sector is a mandatory obligation under the FTR Act.
Other key obligations include the identification of clients, establishing the source of funds that is involved in property transactions and reporting $10,000 and above cash and bank cheque transactions to the FIU.
Mr Buksh said that partnership with REALB is an important step and looks forward to working closely with REALB in the future.
*
Photo Caption:
FIU Director Razim Buksh with Acting Chief Executive Officer Virisila Tuimanu
