The Property Practitioners Regulatory Authority (PPRA) reports that estate agents are demonstrating strong compliance efforts as the country works towards removal from the Financial Action Task Force’s (FATF) greylist.

However, the Financial Intelligence Centre (FIC) warns that more concerted action is required from both legal professionals and property practitioners to address the deficiencies that led to South Africa’s greylisting in 2023.

The FATF’s decision came after the country fell short of international standards for combating illicit financial flows.

The PPRA, which hosted an SMME Incubation event in Midrand on Friday, emphasises the real estate industry’s commitment to strengthening financial controls.

Executive Manager for Audit Compliance and Inspection, Dineo Mphahlele, states that a number of interventions have been put in place to support the FIC.

“One of the mechanisms or the major search was put in place that ensures that property practitioners report suspicious transactions to the FIC. They also develop their own compliance management risk program that is compliant with the FIC, and they are also trained, meaning within their business endeavours or business, they are able to train their own staff, and they keep abreast of the changes that are brought about by the FIC.”

Mphahlele says that to date, they have increased compliance by 12% after sitting at 64% last year.

At the same time, Human Settlements Minister Thembi Simelane has welcomed the progress made to get off the greylist and acknowledged the estate agency sector remains largely untransformed.

Simelane says they are also engaging commercial banks on transformation clauses aimed at driving change in the sector.

“So we need to look into the transformation wing and ensure that we could be able to transform the industry and make sure that every player, I mean the market, is very big. You go into the market of Soweto, for example, houses that are being built, houses that are being sold. I mean, there’s no reason why we can’t develop property practitioners in those areas in Mamelodi and everywhere else. Even in the suburbs, you do see now a small introduction of property. The practitioners who would want more footprint, particularly in previously disadvantaged individuals and companies.”

Simelane says while there are still gaps, government is also working to support first-time homebuyers who do not fall within qualifying for an RDP home or bond.

The estate agents watchdog says it is committed to transforming the sector to benefit all those operating within the space.

--SABC--