Phase one findings of estate agents review published

The findings of the initial phase of a thematic review relating to estate agents have been published by the Isle of Man Financial Services Authority.

Information was gathered via a questionnaire issued earlier this year to all 20 businesses registered under the Designated Businesses (Registration and Oversight) Act 2015 to carry out estate agent activities in the Island. The questionnaire followed the analysis of existing data from statistical returns, inspections and business meetings held with firms from the sector.

The intention is to test how estate agents are meeting their obligations in respect of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Code 2019.

The 67 phase one questions were broken down into four main sections to capture data under the key themes of sales and purchases, lettings and rentals, risk factors and controls. The responses will help to inform the Island’s National Risk Assessment, as well as further updates to the AML/CFT sector specific guidance.

The Estate Agents Phase One Report, which is available to view online, sets out the findings of the questionnaire, including the Authority’s observations and examples of best practice.

The estate agency sector is an important part of the Island’s economy, with transactions totalling £532.85million taking place in 2023. The thematic review will enable the Authority to gain a better understanding of the policies, procedures and controls put in place by estate agents to assess their business and customer risks and to detect and prevent money laundering, terrorist financing and proliferation financing.

This work supports the Authority’s objectives of reducing financial crime and maintaining confidence in the Island’s finance sector through effective regulation.

Firms are encouraged to read the phase one report and consider any action necessary to ensure their own risk-based compliance regimes are effective, up-to-date and properly documented. Phase two of the project is ongoing, with inspections expected to continue into 2025 when the final results will be published.

Tristan Caley, Senior Manager, AML/CFT Supervision, said: ‘The report is an important part of the Authority’s engagement and outreach to share further insight into the Isle of Man’s estate agency sector through the data collected as part of the phase one questionnaire. This thematic project will inform our AML/CFT/CPF guidance and the National Risk Assessment, with work currently underway. We look forward to the sector’s continued collaboration as we move to phase two, where we will seek to corroborate our understanding of the ML/FT/PF risks and the level of compliance with the relevant legislation within the estate agency sector.’