REAC Joins Fight Against Terrorism Financing, Money Laundering

Kebone Laetsang | Monday April 1, 2019 14:42

Speaking recently, Real Estate Advisory Council (REAC) chairperson, Montshwari Mooketsi said in 2017 Botswana was found to have weak legal frameworks to curb these crimes.

The Financial Action Task Force (FATF) recommendation 1, requires countries to identify, assess and understand the ML/TF risk and apply a risk based approach (RBA) to ensure that measures to prevent/ mitigate ML/TF Risks are commensurate with the risks identified.

“Real estate advisory council as the Supervisory Authority as per section 2 and item 3 of the second schedule of financial intelligence Act  2009 is spearheading the  Anti-money laundering  and counter financing of terrorism  (AML/CFT) Risk assessment of the real estate sector,” said Mooketsi.

The chairperson in the Reference Committee for ML/TF risk assessment in the real estate, Oarabile Zhikhwa added that the assessment is intended to be comprehensive sectoral so as to provide an overall picture of the National ML/TF risks across anti-money laundering (AML) or counter terrorist financing (CTF) regime.

It will cover potential threats and vulnerabilities throughout all real estate business lines and their consequences to address the purpose and   scope of the assessment.  Zhikhwa said REAC would identify the weaknesses and gaps in AML/CTF framework, devise strategies and prioritise action plans that will strengthen the AML/CTF controls and close the gaps in the real estate sector.

To develop and implement a risk based approach (RBA) through risk based AML/CTF supervisory manuals (policies, procedures and guidelines) to mitigate the risks identified in each business line/profession by April 2019, and to be compliant to the FI Act. “The reference Committee tasked to spearhead the risk assessment in the real estate sector in Botswana comprised REAC, Real Estate Institute of Botswana, Banking Sector, Deeds Registry, Private Sector, Department of Lands and Land Boards,” explained Zhikhwa. Zhikhwa said the data collection would be done through questionnaires to the different players and risk drivers in the real estate sector.

Those involved in the real estate practice will assist by taking part in the completion of ML/TF risk assessment questionnaires, which would inform the country as to the threat and vulnerability of the real estate sector. The stakeholders include Valuers, Estate agents, Auctioners/Deputy sheriffs, Property managers, Developers, Conveyancers, Land boards, Asset managers, Property owners, Deeds registry and Facilities management.