It’s time: Conveyancers must comply to new regulations
AUSTRAC boss says 'by taking part in this regime, you really are helping to strengthen our economy'.
THE clock is ticking for businesses newly affected by AML/CTF regulations.
As of Wednesday, compliance is mandatory for conveyancers, lawyers, real estate agents and accountants.
They must have:
- enrolled with AUSTRAC;
- appointed an AML/CTF compliance officer;
- developed an AML/CTF program;
- trained staff in their AML obligations; and
- started due diligence on clients and be prepared to report suspicious matters to AUSTRAC.
They’ll need to verify the identity of clients, assess the source of funds, keep records and submit an annual report.
Industry bodies, like the Australian Institute of Conveyancers and Real Estate Industry Australia, offer help, as do software providers like triSearch.
AUSTRAC has made it clear that the new rules are not to be ignored or neglected.
There is plenty of guidance on its website, including industry-specific starter kits.
Although AUSTRAC has indicated it will initially hand out warnings or infringement notices, court-imposed penalties can be severe.
This year, two financial services companies were fined $50,000 and $45,000 for failure to pay infringement notices.
But in 2023, Crown Resorts was ordered to pay $450 million, Australia’s third-largest corporate fine.
Conveyancers are among some 80,000 so-called “Tranche 2” entities affected by the new rules.
AUSTRAC chief executive Brendan Thomas said: “These reforms are about closing long-standing gaps and making it harder for criminals to hide, move or enjoy the proceeds of crime.”
Since 2020, federal authorities have restrained more than $790 million in residential and commercial real estate linked to organised crime.
“This is about a really significant problem,” Thomas told a recent summit sponsored by InfoTrack and Australian Conveyancer.
“It’s not regulation for regulation’s sake. By taking part in this regime, you really are helping to strengthen our economy.”
He said conveyancers were already reporting suspicious transactions, including one case that revealed links to major overseas criminal networks.
“We had no idea that person was there and we had no idea that that money was coming into the economy,” Thomas said.
“That was one conveyancer with one piece of information before the regime started.”
