In South Africa’s competitive property market, real estate professionals face an increasingly complex regulatory landscape. Under the Financial Intelligence Centre Act (FICA), estate agencies are classified as accountable institutions, meaning they must comply with strict anti-money laundering (AML) and counter-terrorist financing (CTF) obligations.

Failing to meet these obligations is more than a paperwork oversight — it can lead to severe fines, reputational damage, and even criminal liability. Yet many estate agents fall into avoidable compliance traps. Here’s what you need to know to protect your agency.

1. Treating FICA as a One-Off Task

Too often, agencies view FICA verification as a single onboarding step. This misses the fact that ongoing due diligence is required, especially when clients’ circumstances change or red flags emerge.

Avoid it by:

• Implementing continuous monitoring of client profiles, particularly for high-risk clients.
• Using automated alerts to flag expired documents or new watchlist matches.
• Reviewing client files at least once a year.

2. Incomplete or Poor-Quality Client Records

FICA requires complete, accurate, and accessible records for at least five years after a transaction. Missing IDs, expired proof of address, or incomplete beneficial ownership information are common pitfalls.

Avoid it by:

• Standardising document collection with clear checklists for staff.
• Using digital onboarding tools to securely capture, verify, and store documents.
• Training staff on why each document is needed — understanding drives compliance.

3. Overlooking Beneficial Ownership

Many agents verify only the individual signing the contract. For companies, trusts, or joint ownership, you must identify all beneficial owners who ultimately benefit from the transaction.

Avoid it by:

• Verifying all natural persons with a controlling interest (typically 25% or more).
• For trusts, verifying founders, trustees, and beneficiaries.
• Leveraging KYB (Know Your Business) tools to untangle complex ownership structures.

4. Ignoring the Risk-Based Approach

FICA isn’t “one size fits all.” Estate agents must assess each client’s risk profile and apply enhanced due diligence (EDD) where higher risk exists — for example, politically exposed persons (PEPs) or clients from high-risk jurisdictions.

Avoid it by:

• Creating a risk assessment framework tailored to the property sector.
• Conducting PEP and sanctions screening at onboarding and regularly thereafter.
• Documenting risk assessment decisions for audit readiness.

5. Neglecting Staff Training

Compliance breaks down when staff don’t know the rules — or why they matter. Too often, sales and customer service training overshadow compliance.

Avoid it by:

• Running annual FICA training for all staff, including part-time and temp agents.
• Using real-world case studies from the property sector.
• Embedding compliance into company culture.

Why It Matters

Compliance is not a hurdle to property sales — it’s a trust-builder for clients, regulators, and partners. By avoiding these pitfalls, real estate agents can safeguard their business, uphold their licence, and contribute to a more transparent property market.

With the right technology, compliance doesn’t have to slow you down. ThisIsMe’s Partners Platform, API automation, and Batch Data services streamline FICA verification so your team can focus on closing deals — not chasing paperwork.