1. Have you updated your FICA Manual - New reporting requirements introduced on 20 May 2. Have you submitted your PAIA Manual - Deadline 31 August 2005 3. Compliance matters for Estate Agencies - the start of a series highlighting the many things that estate agencies need to do.



HAVE YOU UPDATED YOUR FICA MANUAL? Principals - have you updated your FICA Compliance Manual to include the new reporting requirements introduced on 20 May? You need to: your estate agency is now part of the fight against terrorism. Since 2003, estate agency firms have been required to implement the Financial Intelligence Centre Act (FICA), to have a manual of procedures for staff and agents to follow, and to appoint an in-house compliance officer to make sure that everyone follows the procedures and keeps the required records. One of the procedures which you must follow is to report to the FIC any property sale or lease which you know or suspect is "suspicious or unusual" in that it's being used to launder money or to evade paying tax or transfer duty or stamp duty. In terms of the Schedule to the recently introduced Protection of Constitutional Democracy Against Terrorist and Related Activities Act (POCDATARA), you must now also report to the FIC any property transaction which you know or suspect may be connected with "terrorist activity". As defined in the Act, terrorist activity includes not only violence, bombings and hostage-taking, but also interfering with electronic systems, damaging the economy, advancing harmful political, religious, ideological or philosophical causes, and destroying or substantially damaging property which is part of the cultural heritage. If you discover that a property which you control or are managing has become " associated with terrorist or related activities", you must submit the report within five days of discovering the fact. If you are involved in a property transaction and discover or suspect that the property is associated with terrorist or related activities, or is to be paid for with the proceeds of such activities, you must report it within fifteen days. The definition of "property" includes not only immovable property, but also property rights, interests in property, and the proceeds thereof. As before, you must submit any report electronically through the FIC website (www.fic.gov.za) or, if you do not have the facilities for this, then you must fill in the report form which was recently published in Government Gazette 27580 dated 20 May 2005 (also available from the FIC website). If you fail to report your knowledge or suspicions, and the property does indeed turn out to be associated with terrorism, you could potentially be charged with supporting terrorism, which carries a 15-year prison sentence. We recommend that you make the necessary changes to your compliance procedures and manual without delay. No doubt, the Estate Agency Affairs Board will issue an update to its FICA Best Practice Guidelines in due course. HAVE YOU SUBMITTED YOUR PAIA MANUAL? Principals - have you submitted your Promotion of Access to Information Act (PAIA) Manual to the SA Human Rights Commission? If not, the latest deadline is 31 August 2005. It has already been extended several times since the original deadline, which was a couple of years ago, and we have no reason to think that it will be extended again. As a "private body", your estate agency - even if it's a one-person home-based business - must give members of the public access to its records on request, provided the requester can show that he or she needs access to exercise or protect his or her rights. Procedures, application forms, and fees have been laid down by the government. Your firm is required to produce a manual which identifies it, lists the records which it holds, and outlines the access procedure. You must have a copy available at your office, and submit a copy to the SA Human Rights Commission. If you have a website, you can also publish it there. Originally, manuals also had to be published in the Government Gazette, but that idea proved unworkable and was scrapped. If you haven't compiled your manual yet, you have slightly less than two months left in which to do so. To help our members, we have produced a model manual which can be customised to each firm's specific requirements. The price is R100 for IEA members and R200 for non-members. To buy a copy, phone Kate at 021 531 3180 or email kate@cape.ieasa.org.za THE COMPLIANCE COLUMN As you can see from the other articles on this page, owning an estate agency is no longer simply about selling and renting out clients' properties. There are legal requirements to be complied with, and they increase with every passing year. So do the penalties for non-compliance. As a service to principals - and especially those whose firms are brand new - we are publishing a series of columns highlighting the many things that estate agencies need to do to keep on the right side of the law. However, this column can be no more than a pointer in the right direction: for detailed information you should visit the relevant websites, consult attorneys and accountants, and attend the workshops and seminars which we provide from time to time. To begin with: basics for a new estate agency firm (company, CC, trust, or sole trader). Register with the Estate Agency Affairs Board: § open a trust account at your bank § appoint an auditor to audit the trust account § obtain a fidelity fund certificate for the firm and each principal § obtain a fidelity fund certificate for each agent and showhouse sitter as you employ him/her. Website: www.eaab.org.za Register with the SA Revenue Service: § as a taxpayer § as a VAT vendor § as an employer for PAYE, UIF and skills development levies payments (if you employ staff or agents). Website: www.sars.gov.za Register with your municipality: § obtain a permit to allow you to display showhouse signs § check if you need to register for RSC levy payments. Register with the Council for Debt Collectors: (if you're going to collect rentals or body corporate levies, as distinct from merely receiving them) § obtain a registration certificate for the firm and each principal § obtain a registration certificate for each person (other than an administrative assistant) whom you employ to collect debts Website: www.debtcol-council.co.za Financial Intelligence: § devise procedures ("internal rules") for complying with the Financial Intelligence Centre Act § compile a manual of those procedures - you can obtain a model manual from the EAAB § designate a compliance officer to ensure that the procedures are followed Website: www.fic.gov.za Promotion of Access to Information Act: § compile an Access to Information Manual - you can buy a model manual from the IEASA § submit a copy of the manual to the SA Human Rights Commission § publish the manual on your website (optional). Website: www.sahrc.org.za