The Financial Action Task Force on Money Laundering (FATF) published a revised set of Forty Recommendations on anti-money laundering measures in June 2003. As a member of the FATF, Hong Kong has the obligation to implement these Recommendations. Consequently, the SAR Government has requested the Authority's assistance in implementing the Recommendations as applicable to the real estate agency sector in Hong Kong.

At the present stage, the Authority would ask estate agency practitioners to adopt the following measures to help prevent money laundering :

(1) Client identification

Where an agent has successfully arranged for the sale or purchase of a property by a client who is an individual, upon the client's signing of the provisional agreement for sale and purchase (whether by himself or through a company), the agent should examine the already executed estate agency agreement (or, in the case of non-residential properties, the relevant "property viewing form" or similar document) to ensure that the following information has been properly recorded :

• name of the client who is an individual;
• type and number of the client's identity or travel document (e.g. Hong Kong Identity Card, passport, two-way permit for Mainland residents, etc.); and
• client's address.

In addition, the agent should state on the agreement :

• address of the property bought or sold;
• price; and
• date of signing of provisional agreement for sale and purchase.

(2) Documents retention

Estate agents should retain the estate agency agreement or "property viewing form" or similar document securely for at least 5 years from the date of the signing of the provisional agreement for sale and purchase, to be provided to the relevant authorities as required.

If practitioners fail in their practice to follow the above measures in client identification and record-keeping, they may be subject to disciplinary action by the EAA.

In accordance with the Organised and Serious Crimes Ordinance (Cap. 455) and the Drug Trafficking (Recovery of Proceeds) Ordinance (Cap. 405), practitioners are also under a duty to disclose to the Police and Customs any property that directly or indirectly represents proceeds of a crime. For a few pointers on such suspicious transactions provided by the Police, please refer to the Annex. Practitioners who would like to know more about money laundering are welcome to attend the seminar to be organised jointly by the Authority and the Police. Announcement will be made on the EAA website (www.eaa.org.hk) and by other means in due course.

The revised Forty Recommendations by the FATF can be viewed on the FATF homepage (www.fatf-gafi.org).