CB urges real estate agents to ramp up anti-money laundering measures

The Central Bank called on the real estate agents to ramp up efforts in adhering to the anti-money laundering and countering the financing of terrorism (AML/CFT), so that money laundering and terrorist financing (ML/TF) risks in the sector are mitigated.

Speaking to the real estate agents, Central Bank Governor Dr. Nandalal Weerasinghe asserted the need to fulfil the obligations under international recommendations, governance and anti-corruption framework.

He stated that such efforts would further strengthen the AML/CFT framework of the country and invited the sector stakeholders to work closely with the Financial Intelligence Unit (FIU) and Urban Development and Housing Ministry towards this national endeavour.

Reflecting similar sentiments, Urban Development and Housing Ministry Secretary W. S. Sathyananda noted that introducing a regulatory framework for the real estate sector would assist in better implementation of AML/CFT requirements by reducing the degree of vulnerability in the sector. He added it would also assist in improving the investor confidence, thereby enhancing the attractiveness of the real estate sector for foreign direct investments.

While the industry is struggling to grasp and comply with regulatory requirements, efforts are underway by the FIU to increase supervision and support the industry to step up its level of compliance.

According to the FIU, very few suspicious transaction reports have been submitted by the real estate institutions during the previous years.

The unit has been lobbying to the government to set up a regulatory body for the sector, in order to register the companies engaged in the real estate business, so that their activities can be monitored more effectively.

As the need to regulate the sector has been recognised by all stakeholders and given the highest priority, plans are underway to establish a mechanism to register the institutions engaged in the real estate business with CIDA until a separate regulatory framework is established.