CNI News
25 Dec 2022
Real estate agents are required to register with authorities to combat money laundering, according to the Myanmar Real Property Development Association.
It was learnt that the process has been implemented in the entire country.
Property agents are required to report sales and purchases of properties worth MMK 100 million and above to the financial intelligence unit, an official from the MRPDA told the CNI.
He said, "The move aims to combat money laundering. The General Administration Department handles the reporting process. Agents are required to report sales or purchases of properties worth MMK 100 million and above to authorities."
Action will be taken against agents who do not register with authorities in accordance with the Anti-money Laundering Law. Agents are required to register with township authorities and to take training courses on anti-money laundering to get registration cards.
A talk on property and financial knowledge
Property agents have been calling for the registering process for a long time, CEO Ko Zeya of Yadanagiri Property Services told the CNI.
He said, "We have been calling for the exclusive license registration for a long time. The government has officially recognized us just now. We need licenses and it is the responsibility of the government to do this. It is beneficial for us because we need to follow rules and regulations and can report our requests to the government. Sellers and buyers will trust us and we will be able to provide better services to them. Ethics and rules will be adopted."
There is a large number of money laundering cases in Myanmar, especially in the property market and the process is just one of the methods to combat money laundering, according to economists.
However, it is still necessary to see whether agents report property purchases and sales to the authorities as required.
Real estates in Yangon
Moreover, it is also necessary to see whether authorities are serious about the registration, an economist who requested anonymity for security reasons told the CNI.
He said,"There are various ways and means to launder money. It seems that authorities have shut down one of the many money laundering route. In Myanmar, cash circulation in the property market is very huge. Moreover, properties in Myanmar are not purchased for residence but for speculation. So, authorities cannot levy taxes on the transactions and cash involved in the transactions are black money. It seems that authorities are trying to prevent tax evasions. It is just a policy on paper and we will have to wait and see whether authorities actually implement the policy because agents will not report all transactions they make. It is a good policy but we will have to wait and see how authorities effectively implement it."
As the MRPDA is affiliated to international property services associations by joining the Asia Property Services Association, the registration process is likely to expand its markets, according to property agents.
