LU Activity 2 Practical assignment.docx - ACTIVITY 2 PRACTICAL ASSIGNMENT 2 1 Accountable Institutions Estate agents are specifically mentioned as an

LU Activity 2 Practical assignment.docx - ACTIVITY 2...

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ACTIVITY 2: PRACTICAL ASSIGNMENT 2. 1 Accountable Institutions Estate agents are specifically mentioned as an accountable institution in Schedule 1 of FICA. Draft a short memorandum to your principal in which you discuss and explain the following :- a The concept of an accountable institution 1 Estate Agent 2 Banks 3 Attorneys 4 Insurance brokers 5 Investment manager In terms of section 21 of FICA estate agents as an accountable institution may not establish a business relationship or conclude a single transaction with a client unless the accountable Institution has taken prescribed steps to establish and verify the identity of that client. As per item 1 of Schedule 1 to the Financial Intelligence Centre Act 38 of 2001 (FICA) all practitioners who practice as defined in section 1 of the Attorneys Act 53 of 1979 are regarded as Accountable Institutions (AI) . Practice is defined in the Attorneys Act to mean practice as an attorney, notary or conveyance. This means that the conducting of such business must be a regular feature of the business of such entity or individual. b The statutory bodies created to support the money laundering legislation 1. Provide processes and working methods to ensure that the identities are obtained of all parties with whom the institution has a business relationship or conducts a single transaction; 2. Provide for steps to be taken by relevant staff to verify identities; 3. Provide for management responsibilities in respect of compliance with the Act, the regulations themselves and the internal rules; 4. Allocate responsibilities and accountabilities of staff in compliance with verification of identities; 5. provide for disciplinary steps against staff members for non- compliance with the Act c The duties of an estate agent as an accountable institution 1 To establish and verify the identity and residential address of the client 2 If the client is acting on behalf of another person to establish and verify identity and residential address of that other persons 1 5
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authority to act on behalf of that other person. 3 If another person is acting on behalf of the client to establish and verify the identity of that other person and that other persons authority to act on the clients behalf .
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  • Winter '15
  • R.Ghiradella
  • Estate agent, National Association of Estate Agents, estate agency

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