13 Sep Real estate and the Wwft
You may have noticed that real estate agents are asking more questions lately. Why? Since July 25, 2018, the Wwft (Wet ter voorkoming van witwassen en financieren van terrorisme – Anti-Money Laundering and Anti-Terrorist Financing Act) has imposed obligations on real estate agents.
What is the Wwft?
The Wwft aims to combat money laundering and the financing of terrorism. Money laundering is the process of making illegally obtained funds appear legal, concealing their illegal origin. Terrorist financing involves using funds to support terrorist activities. The Wwft introduced new responsibilities for real estate agents, who are now required to conduct client investigations and report unusual transactions to the FIU (Financial Intelligence Unit). The FIU reviews these reports to determine if further action is necessary.
What does it mean for you that your real estate agent must comply with the Wwft?
The main requirement for real estate agents is to conduct a client investigation. We are required to identify all clients using a valid form of ID (passport, ID card, driver’s license) and verify their identity. This applies to both sellers who engage us to sell their property and buyers interested in purchasing. Be sure to bring a valid ID to your first viewing or when engaging our services.
We are also required to determine where you reside. You may wonder why—this is because certain countries are considered high-risk for money laundering and terrorist financing.
Additionally, we must verify the source of the funds used for your purchase. This ensures that the transaction isn’t being used to launder money. Once we have gathered this information, we comply with the Wwft requirements. Failure to do so could result in penalties, fines, or sanctions for us.
Duty to report
As real estate agents, we are required to report any suspicions of money laundering or terrorist financing to the FIU. This could happen, for example, if you are unable to provide a reasonable explanation for the source of funds used for a property purchase. Additionally, if a cash payment exceeds €10,000, we are obligated to report this. The FIU will analyze the report and determine if further action is necessary.
Privacy
The client investigation involves collecting sensitive personal information, but this is required by law. Asking for this information does not violate the GDPR (General Data Protection Regulation).
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