Step-by-Step Guide to AML Compliance for Real Estate Agencies

The objective of the Anti-Money Laundering (AML) procedure is to combat money laundering and terrorist financing. Real estate agencies, such as Nextimmo, must comply with a series of legal obligations to adhere to current regulations.

1. Customer Identification (Know Your Customer – KYC)

From the very first contact, all essential information must be collected:

• For individuals:

  • Name, date of birth, address
  • Copy of identity card or passport
  • Proof of residence (e.g., electricity bill)

• For companies:

  • Extract from the trade register
  • Articles of association
  • Identification of ultimate beneficial owners (see next step)

💡 If the client is not physically present, a certified true copy of the identity documents is mandatory.

2. Identification of the Ultimate Beneficial Owner (UBO)

When a client is a company, it is essential to determine who actually controls the business.

Rules to follow:

• Any person owning more than 25% of the shares is considered an ultimate beneficial owner.
• If no person exceeds 25%, the company's executive or director is considered the UBO.

💡 Beware of complex structures (trusts, holding companies) that can mask the true identity of the beneficiaries.

3. Client Risk Assessment (Risk Matrix)

Each client is classified according to an AML risk level:

• Low risk: Local clients with transparent income.
• Medium risk: Clients coming from countries with weak AML regulations or with a complex structure.
• High risk:
  • Politically Exposed Persons (PEPs)
  • Offshore companies or those located in high-risk countries
  • Funds of unclear origin

💡 A high-risk client requires enhanced due diligence.

4. Monitoring of Transactions and Financial Flows

Every transaction must be analyzed to identify any potential anomalies:

• Abnormally high amounts without clear explanation
• Transactions originating from high-risk countries
• Cash payments (strictly prohibited)

💡 No transaction should be validated before the identification process is complete.

5. Sanctions List Verification (Name Screening)

The client's name must be checked against international databases:

• Sanctions lists (EU, UN, OFAC, Interpol)
• PEP database (Politically Exposed Persons)
• Interpol and fraud reports

💡 If a client appears on any of these lists, the transaction must be stopped and reported.

6. Ongoing Monitoring & Reporting Obligations

Nextimmo is required to report any suspicious activity immediately:

• Suspicious transactions must be reported to the Cellule de Renseignement Financier (CRF).
• In case of suspicion, the transaction may be blocked.
• A client may be reclassified as "high risk" if new elements emerge after the initial identification.

💡 Key rule: Any communication regarding an ongoing AML investigation is prohibited (No-Tipping-Off principle).

7. Archiving & Data Retention

All client information must be retained for at least 5 years.

Documents to archive:

• ID documents and supporting evidence
• Contracts and mandates
• Risk assessments
• Transaction details

💡 Authorities must be able to access these documents at any time.

8. Training & Internal Controls

All employees must be regularly trained on AML obligations.

An AML/CFT Officer (Anti-Money Laundering and Countering the Financing of Terrorism) is responsible for:

• Ensuring the correct application of the rules.
• Reporting suspicious transactions.
• Updating AML procedures.

💡 Breaches of regulations can result in fines of up to 5 million euros or the withdrawal of the operating license.

Conclusion

🔹 AML is not an option; it is a legal obligation.
🔹 Too many real estate agencies underestimate this risk... and expose themselves to severe penalties.
🔹 Ignoring these rules means putting your business in danger.

💡 The only solution: respect AML obligations from the very first contact with a client.