Estate Agents Thematic Phase 2 Report published
The Isle of Man Financial Services Authority has published the findings from Phase 2 of a thematic review relating to the Island’s estate agents.
A total of 12 estate agents were selected to take part in on-site inspections to build on the data gathered via responses to a questionnaire issued during the initial phase of the project.
The objective was to assess how estate agents are meeting their obligations in respect of the AML/CFT Code 2019 and the money laundering, terrorist financing, and proliferation financing (ML/TF/PF) risks posed to the sector.
There were four main areas of focus during Phase 2 – Business Risk Assessments, Customer Risk Assessments, New Business Relationships, and Staff Training.
The Estate Agents Phase 2 Report, which can be accessed on the Publications section of the Authority’s website, sets out the key takeaways, examples of good practice and areas for improvement, together with the Authority’s observations on the findings.
The estate agency sector is an important part of the Island’s economy, with transactions totalling £532.85 million taking place in 2023. The thematic review tested the policies, procedures and controls put in place by estate agents to detect and prevent ML/TF/PF.
Ben Higgins, a Manager in the AML/CFT Supervision Division, said: ‘This project involved close collaboration with the Island’s registered estate agents, and we wish to thank all the firms that took part. The data gathered via the Phase 1 questionnaire and Phase 2 on-site inspections will strengthen our understanding of the ML/FT/PF risks and the level of compliance within the sector.’
He added: ‘This work supports the Authority’s overarching objectives of protecting consumers, reducing financial crime and maintaining confidence in the Island’s finance sector through effective regulation. Firms from all licenced and registered sectors are encouraged to read the Phase 2 report and consider any action necessary to ensure their own risk-based compliance regimes are effective, up-to-date and properly documented.’