There may be a solution to AML/CTF headache

THE latest tranche of AML/CTF legislation is like “another nail in the coffin” for experienced conveyancer Jacki Adams, who feels she works as an “unpaid contractor” for the government.

“The AML/CTF legislation is another risk I never asked to take on,” said Adams, the principal of JLA Conveyancing in Raymond Terrace in NSW.

But, with 24 years of experience under her belt, Adams believes there could be a simple solution to ease the AML/CTF burden on conveyancers.

She said the government should “accept responsibility” for their own processing and enforcement work, which they have “slowly put on the conveyancing and legal industry over the past 20 years”.

She believes the solution lies within Service NSW centres, and similar centres in other states.

“All clients should be able to walk into a Service NSW centre where they can carry out an ID check, have their ATO forms lodged and carry out their AML checks,” she said.

“Once they have carried out all requirements, they could be given a reference number to be shared by the client with their legal team, their lender, their agent.”

Adams said conveyancers could then verify the information and reference number online and confirm the client has been identified, their citizenship status confirmed and their AML and ATO information confirmed.

“That reference number could be added into the PEXA workspace,” she said, “and all parties would clearly see the reference aligns with Service NSW; just like how the stamp duty assessment number and PEXA are linked systems.

“The legal professional then has the information they need to progress the matter, the cost of that process is borne by the client and the risks of maintaining the privacy of that system and any misinformation are handled by the bodies wanting the information in the first place.

With the current obligations under Tranche 2, Adams said she has stopped accepting some work – including SMSF transfers – and is restricting acting for companies during busy periods because of the extra workload the AML/CTF necessitates.

“I’m having to limit the work I accept to ensure I can remain across all requirements – and the urgency required in this industry. Too heavy a workload simply increases my risks of missing something and making a mistake.”

A licensed conveyancer for the past 12 years and with over two decades of experience within the legal industry, Adams said the legislative hoops she has to jump through to do her job make her feel under-compensated for her work, while the AML/CTF is adding at least an extra 20 minutes to every file.

“More and more time is spent being an unpaid government agent than we spend doing our job: being legal professionals,” she told AC.

“We receive no remuneration for this work, little to no training, inconsistent advice from Revenue NSW and Fair Trading, no support team or support contacts with Revenue NSW, the ATO or Fair Trading, and we’re left explaining to the public why this information is required in the first place.

“My clients are offended, questioning why and who needs this information, why they’ve not heard of it before.

“Others are beyond frustrated that they have had to go through the same process no less than three times.

“Conveyancers also bear all the risk if we make a mistake, exposing ourselves to a professional indemnity insurance claim as well as professional discipline.”

Adams believes the mounting pressures on conveyancers are affecting the viability of being a small operator and she has considered consolidating with other conveyancing businesses to survive.

“As a solo conveyancer, I truly believe our increasing costs, the huge increases year-on-year of our professional indemnity insurance, increases in operating costs, wage increases and unregulated competition in the industry means the small firm’s days are numbered,” she said, adding she has heard of some conveyancers who chose to leave the industry when the AML/CTF was announced.

Adams would like to see more input from the Australian Institute of Conveyancers (AIC) as conveyancers country-wide are impacted.

“I would love to see more vocal support from the AIC as to what is happening to represent our industry in defending us from this constant onslaught, protecting us from the financial and legal risks that are increasing each year,” she said.

“While there definitely seems to be things ‘happening in the background’, we really aren’t privy to what is being said or done to represent our industry.

“There also needs to be more time and resources allocated to educating the public on the role of conveyancers and lawyers in a property transaction, along with setting mandatory and minimum charges for our services which reflect the high level of expertise, skill and experience needed.”