The Authority has issued guidelines to practitioners on the prevention of "money-laundering" and requested practitioners to report suspected "money-laundering" activities. If I report against a customer who is subsequently found not guilty of "money-laundering" will I be guilty of making a false report or framing, or be sued by my client in civil litigation? Besides, is it a contravention of my duties as an agent to report against my client?

Pursuant to the Organized and Serious Crimes Ordinance (Cap. 455) and Drug Trafficking (Recovery of Proceeds) Ordinance (Cap. 405), any person who knows or suspects any property to be direct or indirect illegal gains shall report on it as soon as possible. The informer shall not be held legally liable in damages for any loss arising out of the reporting, nor will he be regarded as contravening any contractual or statutory law, rule of conduct or any other provisions.

In reporting on "money-laundering" activities, will the informer's identity be treated in confidence?

The Joint Financial Intelligence Unit jointly operated by the Police and the Customs and Excise Department has stated that the identity of any person who reports against "money-laundering" activities shall be treated in confidence according to law.

The Authority's guidelines on the prevention of "money-laundering" activities stipulate that an estate agent must indicate the property address, transaction price and the date of the provisional sale and purchase agreement in the Estate Agency Agreement upon completion of a sale and purchase transaction. If the agent adds the relevant particulars only to the copy of the Agreement that he retains, but does not enter such particulars in the copy of the Agreement retained by the customer, will the legal validity of the Agreement be affected? Furthermore, as the relevant data are contained in the provisional sale and purchase agreement, is it necessary to record them in the Agreement as well?

With regard to the entering of transaction particulars to an Estate Agency Agreement (Forms 3 to 6), the most ideal way to do it, where circumstances permit, is to insert the relevant particulars into the copies held respectively by both parties and arrange for both parties to initial the additions in confirmation at the same time. However, if this cannot be done, one may consider other methods depending on the circumstances, such as recording the relevant additional information in an attachment. This will not affect the validity of the Agreement.

The transaction particulars may well be contained in the provisional sale and purchase agreement. However, as the agent may not necessarily be a party to the provisional sale and purchase agreement, he is not empowered to request and retain the provisional agreement. In order to establish a uniform mechanism to prevent "money-laundering" activities, practitioners should follow the steps indicated in the guidelines.

The Authority's guidelines on the prevention of "money-laundering" activities stipulate that agents shall ensure that they fill in the name, identity card number and address of each customer in the Estate Agency Agreement only after a sale and purchase transaction has been achieved. Does this mean that it is not necessary for a client to fill in his name, identity card number and address before entering into the provisional sale and purchase agreement?

In the Estate Agency Agreement, both the address and the identity card number of the client must be filled in, and the Estate Agents Practice (General Duties and Hong Kong Residential Properties) Regulation also requires that this document be completed accurately. The guidelines issued by the Authority are a reiteration of such provisions. In a case where the client does not hold a Hong Kong Identity Card, the estate agent should request the client to produce identification documents or travel documents (such as passports or the two-way permits for immigrants from the Mainland to Hong Kong) and record the type and number of document. This practice will assist law-enforcing agencies in their investigation in future when necessary.

If a client refuses to provide his identity card number and address and cite the Personal Date (Privacy) Ordinance as an excuse, will the agent be in breach of the provisions as a result?

An Estate Agency Agreement must indicate the identity card number and address of the client according to the law, and an estate agent who demands the prescribed information from a client does not thereby contravene the Personal Data (Privacy) Ordinance. The estate agent, however, must explain the document to the client clearly, and exercise due diligence in handling the client's information.

The fact that a client insists on refusing to provide such information means that the Estate Agency Agreement cannot be entered into in accordance with the Estate Agents Practice (General Duties and Hong Kong Residential Properties) Regulation. Since the Agreement is required under the law and is intended to protect both the agent and the client, the agent should seriously consider whether he should continue providing services to this client.

Note : The above information is for general reference only. An estate agent should seek advice from his legal advisor in respect of any specific legal issue arising from his practice.