Unlicensed estate agent found guilty

Posted on 6 Sep 2015 | Comments Off on Unlicensed estate agent found guilty

On 4 June 2015, Jatinder Singh s/o Gurnam Singh was sentenced to 18 months’ imprisonment and fined $41,000, in default 164 days’ imprisonment. He was fined for three charges under the Estate Agents Act (EAA) for acting as an unlicensed estate agent on three occasions. He was sentenced to imprisonment for three Penal Code charges – two for criminal breach of trust (CBT) and one for forgery. Four charges of handling transaction monies and three similar Penal Code offences were taken into consideration for sentencing.

For the EAA offences, Jatinder represented tenants in leasing three properties in 2012 – a unit in The Sail@Marina and two HDB units located in Sengkang and East Coast. He collected commission from the tenants of the three lease transactions. Jatinder also handed transaction monies for the two transactions relating to the HDB properties.

For the Penal Code charges, one CBT charge and two forgery charges were related to the lease transaction of The Sail@Marina while another CBT charge was related to the lease transaction of the HDB unit in East Coast. The two remaining CBT charges were not related to the lease transactions in the EAA offences.

Under the EAA, an estate agent must be licensed with CEA before conducting estate agency work in Singapore. Consumers should only engage licensed estate agents and registered salespersons. CEA also advises consumers not to hand transaction monies to salespersons. Salespersons are not allowed to handle transaction monies in the sale or purchase of any property situated in Singapore and the lease of HDB property.

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Combating money laundering and countering terrorism financing

Posted on 6 Sep 2015 | Comments Off on Combating money laundering and countering terrorism financing

As part of efforts to enhance industry awareness of anti-money laundering (AML) and countering the financing of terrorism (CFT), CEA and CAD conducted a second joint industry outreach/briefing session on 27 July 2015 at the HDB Auditorium. The event was attended by some 350 participants.

In his opening remarks, CEA Deputy Executive Director Lee Kwong Weng said that “AML and CFT are very important issues and the Singapore government takes them seriously”. He emphasised the important role the real estate agency industry has to play in AML and CFT, and that “we must not let the industry be unwittingly made use of to finance terrorism”.

In the first of two briefings, CAD Commercial Affairs Officer Fam Suen Li highlighted the vulnerabilities of the real estate sector to money laundering and terrorism financing through the sharing of case studies. CEA Principal Manager (Policy & Planning) Cedric Peeris then brought the audience through the requirements in the Practice Circular on prevention of money laundering and countering the financing of terrorism, and key learning points from inspections of estate agents for compliance with AML/CFT measures.

The participants were reminded that lodging a Suspicious Transaction Report (STR) is a legal obligation. STRs play an important role in combating money laundering and terrorism financing. Under the Corruption, Drug Trafficking and other Serious Crimes (Confiscation of Benefits) Act [CDSA], it is mandatory for a person, in the course of his/her business or employment, to lodge a STR if he/she knows or has reason to suspect that any property may be connected to a criminal activity. Failure to disclose such knowledge, suspicion, or other related information constitutes an offence punishable by a fine not exceeding $20,000.

Other than briefing sessions, CEA issued a revised Practice Circular on AML and CFT in February 2015, which superseded the previous circular issued in November 2013.

The updated circular sought to increase industry understanding on issues relating to AML/CFT. It provided information on the measures to prevent against such activities that might be conducted through property transactions. Also highlighted were the key provisions, offences and obligations for compliance by estate agents and salespersons. CEA also provided a self-assessment checklist to guide estate agents on AML/CFT procedures, training and compliance management.

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