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Odisha Real Estate Regulatory Authority (ORERA) has directed all registered real estate agents to strengthen their anti-money laundering (AML) and counter-terrorism financing (CTF) compliance by verifying clients against the latest United Nations Security Council (UNSC) sanctions list. The directive follows communications from the Director General of Audit, Indirect Taxes & Customs, and requires agents to comply with obligations under the Prevention of Money Laundering Act (PMLA) and related rules. The move reinforces due diligence requirements, strengthens regulatory oversight and aligns Odisha's real estate sector with global financial compliance standards.
The Odisha Real Estate Regulatory Authority (ORERA) has instructed all registered real estate agents in the state to strengthen compliance with anti-money laundering and counter-terrorism financing regulations by verifying clients against the latest United Nations Security Council (UNSC) sanctions list. The directive is intended to ensure that real estate transactions remain compliant with both national and international financial regulations while preventing the misuse of the property sector for illicit financial activities.
The advisory has been issued in continuation of ORERA's earlier instructions regarding the obligations of real estate agents as "Reporting Entities" under the Prevention of Money Laundering Act (PMLA), 2002 and its associated rules. According to the authority, agents must remain vigilant while undertaking customer due diligence and ensure that clients do not appear on updated sanctions lists issued by the United Nations Security Council.
The latest communication follows letters issued by the Director General of Audit, Indirect Taxes & Customs, Government of India, which circulated updated guidance relating to additions and deletions in the UN sanctions list. ORERA has forwarded these communications to registered real estate agents for information and strict compliance, emphasising that reporting entities must remain updated with changes in sanctioned individuals and organisations.
Under India's anti-money laundering framework, real estate agents are recognised as reporting entities because of the significant financial value of property transactions. They are therefore required to conduct customer identification, maintain transaction records, report suspicious activities where necessary and comply with sanctions screening requirements. Verifying prospective buyers, sellers and other clients against updated sanctions databases forms an important part of this due diligence process.
The United Nations Security Council periodically updates its sanctions lists to include or remove individuals, entities and organisations linked to terrorism financing, proliferation activities or other internationally sanctioned activities. Financial institutions and designated reporting entities across member countries are expected to screen clients against these lists before entering into financial or commercial transactions. By extending these compliance expectations to the real estate sector, regulators seek to reduce the risk of property transactions being used to conceal illicit funds or facilitate prohibited financial activities.
ORERA's latest directive reflects the increasing regulatory focus on strengthening governance and transparency in India's real estate market. Authorities have been progressively aligning the sector with global standards relating to financial integrity, customer due diligence and risk-based compliance. The regulator has reminded real estate agents that compliance with PMLA obligations is not limited to documentation but also requires continuous monitoring of regulatory updates and implementation of appropriate internal compliance mechanisms.
Industry experts believe that sanctions screening has become an essential component of modern compliance practices, particularly in sectors handling high-value transactions. Real estate businesses are increasingly expected to maintain robust Know Your Customer (KYC) procedures, identify beneficial ownership where required and ensure that transactions do not involve sanctioned individuals or entities.
Through this latest advisory, ORERA aims to enhance awareness among registered agents regarding evolving compliance obligations while reinforcing the role of the real estate sector in India's broader anti-money laundering framework. By integrating sanctions verification into routine customer due diligence, the authority seeks to promote greater transparency, strengthen regulatory oversight and safeguard the integrity of property transactions in Odisha.
Source- Rera App Odisha
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