Money laundering prevention guidelines issued

The Housing Bureau has issued guidelines to prevent real estate agencies from laundering money, according an Official Gazette notice.

Real estate agents and agencies are required to follow the new guidelines during a transaction.

The agents and agencies are obligated to identify and verify the contractor, the parties of interest involved in the real estate transaction, and the property in circumstances of suspicion of money laundering or terrorist financing, or when the authenticity of the documents provided by the contractor is in doubt.

Agents and agencies should also use documents and materials from independent and reliable sources in order to ascertain and verify the identity of stakeholders involved in the transaction.

They should regularly assess the risk of money laundering and the financing of terrorism in relation to the transactions involved in the real estate intermediary business, and procedures for intensive reviews to identify individuals in high-risk situations. 

Agents and agencies are obligated to manage and supervise a transaction, fully understand a customer’s past record, in particular, the customer’s sources of capital.

Large cash transactions involving MOP500,000 or more are considered high-risk situations.

Transactions involving overseas companies, trust companies, offshore companies or other companies with complex organizational structures are also considered high-risk situations, with agents and agencies obligated to identify and verify the parties concerned.