Choosing an Eligible Compliance Officer

Your AML/CTF compliance officer must be employed at management level, be a fit and proper person, and have the authority, independence and resources to run your program effectively. In most real estate agencies, that points to the principal or a genuinely senior manager — not whoever has the most spare capacity.

One of the very first practical decisions every agency has to make is: who is going to be our AML/CTF compliance officer? For a lot of agencies, the instinctive answer is “our office/admin manager can handle this.” It’s worth pausing before you do that, because there are some important eligibility requirements under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AML laws).

Why the Compliance Officer Role Matters So Much

Appointing a compliance officer to oversee your AML/CTF program and day-to-day compliance is one of the core steps businesses need to take to comply with the AML laws. The compliance officer will be the person AUSTRAC will expect to see driving the program day-to-day, and the person your principal and staff turn to when something looks wrong with a transaction. For a full picture of the role, see what a compliance officer actually does.

Who Is Eligible to Be a Compliance Officer?

Under section 26J of the AML laws, a reporting entity must ensure that their compliance officer:

• is a person employed or otherwise engaged by the reporting entity at management level

• has sufficient authority, independence and access to resources and information to ensure the individual can perform the functions of an AML/CTF compliance officer effectively

• if the reporting entity provides its designated services at or through a permanent establishment of the reporting entity in Australia, is a resident of Australia

• is a fit and proper person

• possesses the necessary competence, skills, knowledge, diligence, expertise and soundness of judgement to properly perform the duties of the AML/CTF compliance officer for the reporting entity (also having regard to the nature, size and complexity of the reporting entity)

This doesn’t mean an admin/support employee is automatically excluded. If that person genuinely sits at management level, has decision-making authority, and is given the standing and resourcing to act on it, they could qualify. But a receptionist, sales support assistant, or general office admin person who processes paperwork and doesn’t have authority to direct staff, question a transaction, or report matters up the chain, may not be suitable.

Who Should It Be in a Standard Real Estate Agency?

Take a typical structure: a principal, a handful of sales agents each with their own support staff, and a general admin/operations team.

In that setup, the most sensible options, roughly in order of preference, are:

The principal. In smaller agencies this is usually the default and the safest choice. For sole traders and small-medium agencies, the compliance officer will likely be the owner/principal of the business. The principal already carries ultimate responsibility for the agency’s conduct, has full authority to enforce the program, and has direct commercial incentive to get it right.

A senior manager or office/operations manager — provided they genuinely hold management authority (not just an admin title), have oversight of listings and transactions across the office, and report directly to the principal. This can work well in a larger multi-agent office where the principal doesn’t want to (or can’t) run the day-to-day compliance function personally.

A dedicated compliance/risk lead, if the agency is large enough to justify a standalone role. This is more common in bigger agencies or franchise groups with multiple offices, where transaction volume and risk profile justify a full-time or near full-time function.

What you want to avoid is defaulting to whoever has the most spare capacity in the office. That person can absolutely be part of the compliance team (running ID checks, maintaining records, coordinating training logistics), but the officer who implements the program, makes the judgement calls, and answers to AUSTRAC and to your principal should be someone with seniority and authority in the business.

Once you’ve appointed your compliance officer, the next steps are running personnel due diligence on your team and building effective AML training. If you’re still getting set up, start with our week one AML/CTF roadmap.

Common Questions

Can our office manager or admin staff be the compliance officer?

Only if they meet eligibility requirements under the AML/CTF legislation.  For example, they genuinely sit at management level, with decision-making authority and the standing and resources to act on in the role.  A receptionist, sales support assistant or general office admin person who processes paperwork but doesn’t have authority to direct staff, question a transaction or report matters up the chain may not be suitable.

Does the compliance officer have to be based in Australia?

If the reporting entity provides its designated services at or through a permanent establishment in Australia, the compliance officer must be a resident of Australia under section 26J of the AML laws.

Who is usually the compliance officer in a small agency?

For sole traders and small-to-medium agencies, it’s usually the owner/principal. The principal already carries ultimate responsibility for the agency’s conduct, has full authority to enforce the program, and has a direct commercial incentive to get it right.

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.