RBA Guidance for Real Estate Agents.pdf - FATF

• What may be suspicious.134. Recommendation 15 requires that real estate agents are provided with AML/CFT training, and itis important that agents receive appropriate and proportional training with regard to money laundering andterrorist financing.135. Applying a risk-based approach to the various methods available for training, however, giveseach real estate agent’s firm additional flexibility regarding the frequency, delivery mechanisms and focusof such training. A firm should review its own workforce and available resources and implement trainingprogrammes that provide appropriate AML/CFT information that is:• Tailored to the appropriate staff responsibility (e.g. customer contact or operations).• At the appropriate level of detail.• At a frequency related to the risk level of the transactions involved.• Testing to assess knowledge commensurate with the detail of information provided.Chapter Three: Internal Control Systems136. Many DNFBPs differ significantly from financial institutions in terms of size. By contrast tomost financial institutions, a significant number of DNFBPs have only a few staff. This limits the resourcesthat small businesses and professions can dedicate to the fight against money laundering and terroristfinancing. For a number of DNFBPs, a single person may be responsible for the functions of front office,back office, money laundering reporting, and senior management. This particularity of DNFBPs, includingreal estate agents, should be taken into account in designing a risk-based framework for internal controlssystems. The Interpretative Note to Recommendation 15, dealing with internal controls, specifies that thetype and extent of measures to be taken for each of its requirements should be appropriate having regard tothe size of the business.137. In order for real estate agents to have effective risk-based approaches, the risk-based processmust be imbedded within the internal controls of the firms. The success of internal policies and procedureswill be dependent largely on internal control systems. Following are two key systems identified.Culture of compliance amongst all138. This should encompass:• Developing, delivering, and maintaining a training program for all designated agents andemployees.• Monitoring of any government regulatory changes.• Undertaking a regularly scheduled review of applicable compliance policies and procedures withinthe brokerage firms will help constitute a culture of compliance in the industry.Senior management ownership139. Strong senior management leadership and engagement in AML/CFT is an important aspect of theapplication of the risk-based approach. Senior management must create a culture of compliance, ensuringthat staff adheres to the real estate agent firm’s policies, procedures and processes designed to limit and26