Best Agent CEO warns: Estate agencies face serious FICA compliance risks

Marcel Koole

The Financial Intelligence Centre recently issued Guidance Note 7A (GN7A), which makes it clear that all accountable institutions, including estate agencies, must have a formal Risk Management and Compliance Programme (RMCP) in place. Without one, agencies could face penalties running into millions, restrictions on their ability to trade, and lasting reputational harm.

“Many agents think that simply collecting FICA documents from clients is enough, but GN7A raises the bar significantly,” says Koole. “The law requires agencies to have a clear, documented programme that explains how they identify, assess and manage risks such as money laundering, fraud and financial crime. Compliance is not optional, and those who ignore it put both their clients and their own businesses at risk.”

What GN7A means for estate agencies

GN7A outlines how agencies must design and implement their RMCPs, including:

• Documenting procedures to verify the identities of clients and ultimate beneficial owners.
  
• Setting out how the agency will monitor transactions and report suspicious activity.
  
• Training staff to understand compliance obligations and apply them consistently.
  
• Keeping proper records that demonstrate compliance to regulators.

Agencies that fail to meet these requirements can be penalised by the Financial Intelligence Centre, even if no actual financial crime takes place.

“Compliance should not be seen as a bureaucratic burden, but as part of what makes an estate agency professional,” says Koole. “Reputation is everything in property. Buyers and sellers want to know they are dealing with trustworthy professionals who will protect them from risk. A robust RMCP is not just about satisfying regulators – it’s about demonstrating to clients that their transactions are safe, legal and transparent.”

Proactive compliance as a business advantage

Koole believes that agents who embrace compliance will ultimately be more competitive. “Clients are becoming increasingly aware of the risks in large financial transactions. When you can show that your agency has taken every step to comply with the law, you strengthen trust. That can make the difference between winning or losing a mandate,” he explains.

While implementing an RMCP may sound daunting, Koole stresses that it is achievable for agencies of all sizes. Frameworks can be developed internally with the right guidance, and practical templates are available to help smaller agencies align with the law. “The key is to act before it becomes a crisis. Don’t wait for the Financial Intelligence Centre to arrive with questions you can’t answer. Every compliant agency strengthens the credibility of the industry as a whole. Every lapse undermines it,” says Koole.

Raising the bar for the industry

Best Agent, a platform that helps home sellers find the most qualified and verified estate agents, believes compliance is part of raising the bar for the industry. “Just as holding a valid Fidelity Fund Certificate is a non-negotiable, so too is compliance with GN7A. It’s time we see compliance as a baseline for professionalism in real estate, not a distraction from it,” Koole concludes.