It suggests that agents mitigate, limit, and prevent any type of transaction from being used for money laundering. “Real estate agents have a responsibility to clarify information and know who they are doing business with.”.
SANTO DOMINGO.- If you, as a real estate agent, are summoned by the Public Prosecutor's Office as part of an investigation into a real estate transaction that raised suspicion, your strongest defense will be to have the documents that prove you followed all due diligence procedures.
Experienced lawyer Robinson Cuello advises real estate advisors to keep records for a period of ten years of the payments they have received in their work as real estate brokers, as well as the complete file of their clients, where the type of transaction carried out and its respective supporting documentation are duly clarified.
“Your defense as a real estate agent, if you are called upon, is to verify your documents and conduct your due diligence. As obligated parties, you must safeguard the information for a period of ten years and archive the supporting documentation for the payments you have received,” the professor explained last night during his presentation on the topic of money laundering at CBR 01 certification.
This is a training course being held this week by the AEI (Association of Real Estate Agents and Companies), aimed at new real estate agents. Around 170 students are participating, and a group of experts are introducing them to the real estate world, sharing their wisdom and accumulated experience in the sector.
Cuello commented that real estate transactions are not just about earning a commission, but about demonstrating that the money obtained through these activities is of legal origin. “Today, the type of business conducted with clients must be clearly defined. If you receive a bank deposit exceeding the limit set by the Law Against Money Laundering and the Financing of Terrorism (155-17), the bank will contact you, and to release the funds, they will need to provide proof establishing the connection between the transaction and the commission payment.”.
The prominent professional explained that due diligence consists of knowing the client, knowing who they do business with, their name, the economic activity they are engaged in, the origin of the funds, declaring that the origin of their assets is lawful, and requesting references from the financial system, because this is what allows verifying the truthfulness of the information provided.
It suggests that agents mitigate, limit, and prevent any type of transaction from being used for money laundering. “Real estate agents have a responsibility to clarify information and know who they are doing business with.”.
With the implementation of Law 155-17, the threshold for transactions is just one million pesos when referring to real estate operations, and "if it exceeds that amount, it is a dubious operation," so agents selling a property can get into trouble.
“If you sold to someone, there are indicators you can see during the transaction, for example, when they have no clear source of income. Prove the origin and provenance of those funds. A person who cannot have an account in the Dominican Republic or abroad.” He reminded the audience that the Public Prosecutor's Office does not discriminate when conducting its investigations, and therefore insisted that one must be a monitor of the funds received.
Another point he highlighted was transactions involving checks made out to third parties, which raises concerns within the financial system. “These are accounts and payments from third parties that are unrelated to the payee. The best course of action when something suspicious is detected is for the agent not to complete the transaction.”.
The expert recommends that regular customers have their due diligence updated every two years to ensure that everything is in order, and that the same precautions should be taken with rentals.
Cuello also addressed the issue of property clearance, emphasizing that a property without objections ensures the effective closing of deals.
The topic of trusts was addressed by expert Roberto Carlo Jorge.
