The Department of Industry (DoI) under the Ministry of Industry, Commerce and Employment (MOICE) has directed all real estate agents across the country to strictly comply with Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) requirements.
The directive follows the implementation of the Standard Operating Procedure on Licensing, Monitoring and Supervising of Real Estate Agents for Anti-Money Laundering and Countering the Financing of Terrorism 2025, issued by the Department. It is also aligned with the AML/CFT Guidelines for Designated Non-Financial Businesses and Professions 2023 issued by the Royal Monetary Authority (RMA) of Bhutan.
According to the directive, the DoI has instructed all real estate agents operating in Bhutan to strictly adhere to the regulatory obligations outlined in the SOP and the national AML/CFT guidelines.
Officials say the move is aimed at strengthening oversight of the real estate sector and ensuring that property transactions are not misused for illegal financial activities such as money laundering or the financing of terrorism.
Under the latest directive, all licensed real estate agents are required to conduct proper customer due diligence before engaging in property-related transactions. This includes verifying the identity of clients, assessing the legitimacy of transactions, and ensuring that financial activities associated with property deals comply with national regulations.
In addition, real estate agents must maintain comprehensive records of all transactions, including relevant financial documentation and client information. These records must be preserved and made available to competent authorities whenever requested during regulatory inspections or investigations.
The DoI emphasized that maintaining proper documentation is essential for ensuring transparency and for enabling authorities to trace financial activities if suspicious transactions are detected.
Another key requirement under the notification is the mandatory reporting of suspicious transactions. Real estate agents are required to promptly report any activities that may indicate potential money laundering or terrorist financing to the Financial Intelligence Department of the RMA.
Authorities say timely reporting plays a crucial role in strengthening Bhutanโs financial monitoring framework and helps law enforcement agencies identify and investigate potential financial crimes.
โReal estate professionals serve as an important line of defense in detecting suspicious financial activities,โ an official familiar with the regulatory framework said. โTheir cooperation is essential in ensuring that illicit financial flows do not enter the formal economy.โ
The DoI has also instructed real estate businesses to establish internal policy controls and compliance mechanisms within their organizations. These measures are intended to help real estate agents identify, prevent, and mitigate risks associated with money laundering and terrorist financing in property transactions.
Such controls may include internal monitoring systems, staff training on AML/CFT regulations, and risk assessment procedures designed to detect irregular or suspicious financial activities.
Officials say strengthening internal compliance frameworks will help ensure that the real estate sector operates in line with international financial integrity standards.
The notification further emphasizes that all real estate agents must extend full cooperation to the DoI and the RMA during monitoring, inspection, and supervisory activities.
Officials say cooperation from the private sector is critical to ensuring the effective implementation of the countryโs financial regulations.
โMonitoring and supervision are essential to maintaining the credibility of the real estate market,โ an industry observer said. โCompliance by businesses helps protect the sector from financial misconduct and enhances public trust.โ
The DoI has warned that failure to comply with the prescribed SOP and AML/CFT guidelines will result in strict regulatory action.
Penalties may include the suspension, invalidation, or cancellation of business licenses, as well as the imposition of fines and other penalties in accordance with existing laws and regulations.
Authorities say these measures are intended to ensure that businesses take their compliance obligations seriously and maintain the highest standards of financial transparency.
Regulators say improving oversight of sectors such as real estate, which involves large financial transactions, is a key part of safeguarding the countryโs financial system.
The Department noted that AML/CFT policy documents and related guidelines are available on its official website for businesses seeking further clarification on compliance requirements.
Officials have encouraged real estate agents to familiarize themselves with the relevant regulations and ensure that their operations align with national financial integrity standards.
As Bhutanโs property market gradually expands alongside economic development and urbanization, authorities say maintaining strict regulatory oversight will be essential to ensuring that the sector remains transparent, accountable, and resilient against financial crimes.
With the latest directive, regulators aim to reinforce the message that strict adherence to AML/CFT regulations is a critical responsibility for all businesses operating in the countryโs real estate industry.
Tashi Namgyal
From Thimphu
