Anti-Money Laundering: the real question Principals must answer

The extension of Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws to real estate agencies represents a significant and unavoidable shift in responsibility imposed by the Government.

Agencies are now expected to act as frontline gatekeepers for every transaction, regardless of value or perceived risk, and no size, value or simplicity of deal is exempt. 

The principles of AML appear straightforward, but the reality is very burdensome, requiring detailed work and the ability to hold evidence long after a transaction has settled - not a tick-and-flick exercise and the consequences of poor execution sit squarely with the Principal.

Who would you turn to? Many providers in the market are offering AML platforms, systems, onboarding tools, templates, and training — all necessary components. 

However, these tools do not answer the most critical question principals must now confront: how will this be resourced in practice? 

AML requires ongoing, transaction-by-transaction oversight and accountability operating at a level of seniority that can exercise judgement under pressure. Finding part-time or full-time resources at a time when skilled compliance staff are already scarce is where the problem lies. 

Where agencies are unable to recruit or resource this capability internally, they should seek specialist support.

At RE Solutions, we have over 16 years’ experience managing trust accounts, contracts, and core compliance functions for real estate agencies, and are already assisting our clients to meet AML obligations in a practical, defensible and  most importantly, hands-on manner.

Contact Denise@financialcontrollers.com.au