Financial Crime World

Real Estate Agents Urged to Be Aware of STR Obligations

The Financial Intelligence Unit (FIU) has recently issued guidance on Short-Term Rental (STR) reporting, aimed at enhancing awareness among real estate agents about their obligations in this regard. This initiative is part of a broader effort to combat money laundering and terrorist financing.

Background

As part of the initiative, the Steering Committee on Actions Against Money Laundering and Terrorist Financing has issued recommendations for improving STR reporting and scheduled training sessions for real estate agents.

Training Sessions Scheduled

The first training session took place in May 2019, with further sessions planned for November and December 2019. The training events aim to educate real estate agents about their obligations under the Anti-Money Laundering (AML) Act and provide guidance on:

  • Red flags and typologies of abuse related to STR activities
  • CDD (Customer Due Diligence)
  • High-risk countries
  • Risk assessment

Guidance Issued

The FIU has issued guidance on the following topics:

  • CDD, high-risk countries, risk assessment, and other relevant issues
  • Additional guidance on red flags and typologies of abuse for online gambling and sweepstakes, to be published electronically and on the DIR website

Real Estate Agents Must Comply

The FIU’s guidance makes it clear that real estate agents have a legal obligation to report STR activities. The agency has emphasized the importance of transparency and cooperation in this regard.

“We urge all real estate agents to take their obligations seriously and to familiarize themselves with the guidelines issued by the FIU,” said a spokesperson for the FIU. “Our goal is to ensure that STR activities are carried out in a transparent and responsible manner, while also minimizing the risk of money laundering and terrorist financing.”

Conclusion

The training sessions and guidance issued by the FIU aim to equip real estate agents with the knowledge and tools they need to comply with their obligations under the AML Act. By doing so, the FIU hopes to minimize the risk of money laundering and terrorist financing associated with STR activities.