Worry continues over FICA changes

The upcoming Financial Intelligence Centre (FIC) Amendment Act will be of interest to anybody entering the market this year, whether you are looking to sell property in Centurion or wanting to purchase elsewhere, and in an article on the Private Property website, it was revealed that estate agents are more than a little concerned at the moment.

According to the industry experts, these changes could add even more complications to completing property transactions, which is not ideal when looking at the current state of the market after a tough 2018.

Part of the reason for the concern amongst agents is the fact that there has been little clarity provided to them on the matter, while they also say that there has not been any guidance regarding the implementation of these changes.

Jill Lloyd, who is an agent for Lew Geffen Sotheby’s International Realty, discussed the vast amount of stipulations and mechanisms that are coming into play, saying that it will certainly come at a cost of time and money.

“At the moment we have more questions than answers and smaller or low-commission agencies especially could really struggle to achieve compliance by 1 April 2019. We urgently need more information if we are to abide by the law as well as service our clients to the proper standard,” she said.

Part of the reason for making this change is to assist in fighting back against corruption, money laundering and terrorist financing. This is because nobody will be exempt from the process, no matter their connections, but it is likely to put more pressure on the market, which is already in a difficult place.

It also heaps pressure on estate agents, who now have mammoth tasks in regards to data collection and due diligence, which could prove too costly for some.