AML/CTF Week One Roadmap for Real Estate Agencies
Casey Cossu
If AML has landed on your desk and you’re not sure where to begin, you’re not alone. In your first week: enrol with AUSTRAC and appoint your compliance roles, start your AML/CTF program, update your systems and workflows, begin personnel due diligence and training, and set up escalation pathways and governance records. Here’s that plan, day by day:
Monday – Enrolment & Appointing Your AML Roles
Enrol with AUSTRAC. Use the AUSTRAC Online portal. Get a copy of your company ASIC extract to help you complete details about the business. If you don’t know how to answer a question, seek help.
Assign governance roles — who is going to be your Compliance Officer, Senior Manager and Governing Body? Notify AUSTRAC as to who will be your Compliance Officer.
Tuesday – Starting Your AML Program
Start creating your AML/CTF Program. There are a number of options, including:
If you use an AML platform, some allow you to generate your risk assessment and policies in platform by answering questions about your business. Make sure you read what is generated in full and edit if needed, to ensure the program is suitable for your business (if you later find the generated program too dense or generic, you can replace it). This option is the fastest and can be completed same-day; however, the program will be less tailored to your business and may not work effectively for your team.
Download the AUSTRAC starter kits and work through the customisation process. This option will take the longest amount of time to complete and can be difficult if you’re not familiar with the legislation. The AUSTRAC program is designed to be simple and may be the easiest to implement in your business.
Get a custom AML program designed for your business. The time and cost associated with this option may vary depending on your provider.
Wednesday – Updating Your Systems & Workflows
Map your workflows and updates that are required to meet AML obligations. Work out which of your procedures will need to be updated to fit in the AML requirements (eg. updating your employee onboarding process to do personnel due diligence, updating your client onboarding process to ensure KYC checks are done at the time of appointment).
Consider what work will be needed to update these workflows across your systems. Will you need to subscribe to an AML platform? What functionality does your existing CRM or forms platform have?
Get your tech/systems working. Do any required set up. If you aren’t using an AML platform, almost everything can be done manually. Look at how each process will be completed by the team and the systems they will use.
Thursday – Personnel Due Diligence & Training
Start personnel due diligence for existing employees. Look at your policies for what due diligence is required (for example, you may send out a VOI and licence/registration check for each employee and contractor). Record what personnel due diligence is undertaken. Consider what ongoing due diligence is required.
Schedule your team training. If you use an AML platform, see what training options are available. Aside from general AML training, also schedule in some training on the new systems, as relevant for specific roles. For example, if your administration team will be completing the KYC checks, show them how they will do this and keep records. Record who was trained, when and how. Ideally, role-based training would be provided to the Compliance Officer, Senior Managers and Governing Body to ensure they are across their specific obligations and responsibilities under your AML program and under the laws.
Friday – Escalations & Governance
Establish escalation pathways and resources for the team. Ensure detail about your agency’s specific escalation pathways is included in your team training. For example, it’s not enough to know what suspicious client behaviour is — your team also needs to know how to escalate a concern appropriately (and to who) under your AML program.
Set up your agency governance records. Identify what information under your AML program needs to be recorded, at what intervals and where you will record information and store documents. Set up a record keeping process to ensure information is easily accessible for your future reporting obligations.
Note, this is not an exhaustive list of everything required to operate compliantly. This is a suggested list of actions to help real estate agents with getting started and progressing key compliance tasks under the AML laws. Some of these items may take several days or longer to complete.
Disclaimer
This article is provided for general informational purposes only and does not constitute legal advice. It reflects a general summary of publicly available guidance and is not a comprehensive or authoritative interpretation of the Anti-Money Laundering and Counter-Terrorism Financing Act, associated Rules, or any other legislation. Laws, regulations and regulatory guidance can change, and how they apply will depend on your specific circumstances. Before acting or relying on any information contained in this article, you should seek independent advice tailored to your situation.
