Unlicensed real estate agents cautioned |28 August 2019

(L to r) Mr Rampal, SS Payet and Mr Lablache during the press conference yesterday

The Estate Agents Board, Financial Intelligence Unit (FIU) and the Anti Money Laundering/Countering the Financing of Terrorism (AML/CFT) committee have cautioned individuals against conducting unlicensed real estate agency work.

This follows concerns over the increasing number of individuals who are undertaking unlicensed activities as real estate agents, meaning they are facilitating the selling and buying of land and properties without a licence.

Presently, there are 10 licensed real estate agents in Seychelles that are legally authorised to operate, negotiate and arrange real estate sales.

During a press conference, Estate Agents Board chairperson Patrick Lablache stressed that the unlicensed real estate agents should not be confused with individuals who are selling off their own properties, stating that the latter are completely in their rights to do so.

He noted that, currently, the Estate Agents Board as a regulator cannot do much to discourage unlicensed agents especially without formal complaints from members of the public.

“When we spot someone doing this illegally, we write to them requesting that they stop doing these works and we further encourage them to apply for a licence,” Mr Lablache remarked.

Also present during the press conference were secretary of state (SS) for Finance, Trade, Investment and Economic Planning Patrick Payet and director of the Financial Intelligence Unit (FIU) Richard Rampal.

A consultative meeting, led by SS Payet was organised last week with various government institutions as well as the Estate Agents Board with the aim of revising the legislative framework concerning the activities of real estate agents and the administrative powers and functions of the Estate Agents Board.

Similar consultative processes and reviews are being conducted with other sectors such as car dealerships, notaries and lawyers.

Once a real estate purchase has gone through, lawyers and notaries are expected to validate and register the sale which is why their roles are also being considered during this review, Mr Payet explained.

These consultations form part of the government’s efforts to develop and boost Seychelles’ AML/CFT measures and frameworks, which in turn expects to improve the country’s ratings before the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG).

“We had to meet with the [real estate] sector so that its stakeholders can be made aware of what is going on and to review the sector’s framework so as to minimise existing risks, especially since we know that there are a lot of unlicensed real estate activities going on.”

Mr Payet added that more awareness programmes are required to apprise the population of the dangers and risks of acting as an unlicensed real estate agent or relying on the services of an unlicensed agent.

“People who are involved in illegal activities will often seek to buy a property or house, through which they will funnel the money they have gained illegally. It could be that they are making use of the unlicensed real estate agents to facilitate this procedure,” Mr Payet explained.

Mr Rampal also added that unlicensed real estate agents could also pose a risk to “normal” consumers who are seeking to buy and sell properties, since the customers could be defrauded.

Mr Rampal explained that it is important for real estate agents to take up a license to practice since licensed real estate agents – much like car dealerships, banks and notaries – have been designated as reporting entities under the new AML Act.

This means that they are tasked with reporting any suspicious and illegal activities when it comes to the purchasing and buying of real estate, a measure which unlicensed real estate agents are most likely not taking.

“Real estate agents have the responsibility of learning about the clients they are engaging with […] when a property is being sold, real estate agents are expected to conduct their due diligence and this extends to finding out the source of fund; they have to know where the funding is coming from for the acquisition. They can proceed with the sale if they feel comfortable with this,” Mr Rampal stated.

Real estate agents seeking to obtain a licence to practice will require a real estate agents certificate and five years of experience working in real estate.