FICA for small estate agencies: the basics to have in place

FICA can feel like something only the big franchises have time for. It isn't. Estate agents are accountable institutions under the Financial Intelligence Centre Act, so even a two-person office has duties.

The good news is that most of it is routine once it's set up.

This is a plain-language overview, not legal advice. The Financial Intelligence Centre (FIC) publishes guidance for estate agents, and that guidance is the final word.

1. Register with the FIC

Every agency must be registered with the FIC. Registration is done online, and you'll need it before you can submit any reports. If you're not sure whether your agency is registered, check now. It's one of the first things an inspection looks at.

2. Have a written compliance programme

The Act requires a Risk Management and Compliance Programme (RMCP). In plain terms, it's your office's written rulebook for FICA:

• How you identify and verify clients
• How you decide which clients or deals are higher risk
• What extra checks you do for higher-risk clients
• Who reports suspicious transactions, and how
• How you train your agents

It doesn't have to be long. It does have to match what your office actually does.

3. Know who you're dealing with

Before you act for a client, you need to know who they are. For an individual, that usually means their ID and proof of address. Companies and trusts take more: registration documents, and who the people behind them are.

Our free FICA document checklist lists what to ask for, for individuals, married couples, companies and trusts.

4. Watch for the unusual

Agents need to report suspicious and unusual transactions to the FIC. Some examples worth a second look:

• A buyer who wants to pay a large amount in cash
• A buyer who isn't interested in the price or the condition of the house
• Money coming from a third party nobody can explain
• A seller who wants the proceeds paid to someone else

Large cash payments have their own reporting rules, so make sure your agents know when to call the principal.

5. Keep the records

FICA records must be kept for at least five years. A folder on an agent's laptop isn't enough: when that agent leaves, the records must stay with the agency.

FICA isn't about suspecting every client. It's about being able to show you checked.

Where a CRM helps

In ErfFind, each client's FICA documents are kept on their client record, in the agency's account rather than on someone's phone. If you'd like to see how, book a free demo.