BHUBANESWAR: In response to recent updates by the United Nations Security Council (UNSC) sanctions committees regarding global high-risk individuals and entities, the Odisha Real Estate Regulatory Authority (ORERA) has issued a directive requiring all registered agents to implement anti-money laundering and counter-terrorism financing measures in accordance with the Prevention of Money Laundering Act. This directive follows guidance from the Director General of Audit, Indirect Taxes and Customs.
Under the updated compliance framework, real estate agents are now recognized as reporting entities, necessitating alignment of their customer due diligence processes with the most recent international sanctions. ORERA has instructed real estate agents to check client identities against the UN sanctions list before engaging in any property or financial transactions. Non-compliance with verification and reporting protocols may lead to penalties as stipulated under real estate laws, the authority cautioned.
According to the order, agents are prohibited from transacting with individuals or entities listed on the sanctions list. If a client’s details resemble those on the restricted profiles, agents must conduct enhanced due diligence and comprehensive background checks. In cases of a match, real estate agents are required to promptly report the issue to ORERA and the Director of the Financial Intelligence Unit-India, as detailed in the directive.
The compliance guidelines issued by the regulator reference multiple updates in international terror-finance watchlists, including new entries associated with ISIL and al-Qaida, modifications to Taliban-related listings, and new designations connected to Sudan’s Rapid Support Forces and criminal entities in Haiti. Included in these updates are Sami Jasim Muhammad Jaata Al-Jaburi and Abd El Hamid Salim Ibrahim Brukan Al-Khatouni, both linked to ISIL and al-Qaida. Additionally, updates mention several Taliban officials, such as Mullah Mohammad Hassan Akhund and Abdul Ghani Baradar, alongside members of the Sudan Rapid Support Forces like Abdul Rahim Hamdan Dagalo.
ORERA has emphasized that these compliance measures are obligatory under Section 51A of the Unlawful Activities (Prevention) Act and Section 12A of the Weapons of Mass Destruction Act.
