Estate agents urged to comply with anti-money laundering laws

Real estate agents must show they apply anti-money laundering laws, not just know them, the president of the Barbados Estate Agents and Valuers Association (BEAVA), Chris Hassell, warned, urging buyers and sellers to question agents who fail to make the required checks.

Hassell made his comments after a two-day workshop hosted by the Compliance Unit of the Anti-Money Laundering Authority, themed Check. Comply. Continue.

It brought together professionals and businesses supervised by the unit: attorneys-at-law, real estate agents, accountants and dealers in precious metals and stones.

Hassell said BEAVA, the island’s oldest and largest representative real estate association, has spent considerable time and effort educating its members since real estate agents were classified as Designated Non-Financial Businesses and Professionals (DNFBPs), a move some agents have resisted.

That classification places agents under a legal duty to know their clients, assess risk and keep proper records. While the association has acknowledged their concerns, the law is clear.

Hassell told Barbados TODAY: “Some agents have questioned why they are classified as DNFBPs at all, when they do not hold, transfer or control client funds. In Barbados, those funds pass through attorneys-at-law.

“Others have raised concerns that agents’ checks duplicate those already carried out by attorneys, about the cost of compliance for smaller firms, and about the safe storage of clients’ personal information.

“These are fair questions, and BEAVA has listened to them. We will continue to share our members’ views through the proper channels and to support a measured approach that is proportionate to risk and reflects our local realities. But this is the law, and we must adhere to the law. 

“Knowledge of the new AML policies and procedures,” Hassell said, “is not enough on its own. Agents must be able to show meaningful evidence that they are actively applying them, and that means documenting every transaction.”

The BEAVA leader commended agents who have taken the AML issue seriously: “I want to recognise the agents who are actively learning the processes, who have put their policies in place and who have appointed compliance officers. They are doing it right, and they are raising the standard for all of us.”

He warned that agents who are not familiar with an Entity Risk Assessment or don’t know when Enhanced Due Diligence is required “are being left behind”.

An Entity Risk Assessment is a firm’s written review of the money-laundering risks its business faces and how it manages them. Enhanced Due Diligence refers to the additional checks required when a client or transaction presents a higher level of risk.

Hassell also urged buyers and sellers to pay close attention to the questions their agents ask.

“If your agent is not asking you the right questions, you should be concerned,” he said. “You should ask whether that agent is following the procedures required by law, and whether your transaction may be at heightened risk.”

Returning to the point that agents do not handle client funds, he said this does not lessen their responsibility.

“We believe agents are on the front line as gatekeepers of safe transactions. We may not handle money in the traditional sense, but we still have a responsibility to our clients. We must carry out sufficient due diligence to be confident, as far as possible and based on the information provided, that we are conducting a safe transaction.”

He acknowledged that most property transactions in Barbados would be considered low risk but this did not mean “no checks. We must still document and verify every time”.

Hassell said he would like to see the public play a bigger role in improving industry standards.

“Buyers and sellers are being held to a higher standard, and that is how it should be. In the same way, I want to see prospective clients demanding more from our sector. When clients expect proper due diligence, the whole industry becomes more professional.”

Next year, BEAVA plans to conduct monthly AML training for all registered real estate agents.

BEAVA already runs educational modules for its members throughout the year, he said, but in 2027 the association will add a dedicated monthly module focused specifically on AML obligations.

He said BEAVA intends to work with the Barbados Association of Compliance Professionals, the Financial Intelligence Unit (FIU) and the Compliance Unit to deliver the programme.

“We want this to be a comprehensive approach. Whether you are just starting your compliance journey or you have already been through a full audit of your processes, there will be something there for you.”

(EJ)