Notarial Office Management and Money Laundering Prevention
Notarial Office Management and Money Laundering Prevention
This domain tests office systems and the notary's anti-money-laundering duties.
Core rules
- The Financial Transactions Reporting Act No. 6 of 2006 and the Prevention of Money Laundering Act No. 5 of 2006 impose customer due diligence, record-keeping and suspicious transaction reporting.
- Notaries must identify clients and beneficial owners, understand the purpose of a transaction, screen politically exposed persons and report suspicion to the Financial Intelligence Unit.
- Office management requires registers, an index, safe custody of deeds and wills, control of client funds, staff supervision and a business-continuity plan.
- Records should be retained for the statutory period and handed over properly on retirement or death.
Worked example
A purchaser pays a large cash balance for land in the name of an offshore company. The notary identifies the signatory but cannot establish the beneficial owner. The notary should pause, request ownership information, assess the risk and consider a suspicious transaction report. The reasoning is that the notary is a gatekeeper; completing the deed without customer due diligence exposes the office to liability.
Traps
Relying on an introducer; accepting cash without source checks; commingling client money; and failing to keep records.