The Government has bought in new reforms to inhibit the illicit laundering of funds – what does it mean for you?
For those who read our July newsletter (as we know you ALL do!) you would have seen our reference to the new Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
This is now a requirement for every Real Estate Agency to undertake and implement.
It is at a cost and a cost we all have to individually bear.
Changes to the regime
The new changes come after consultation on a major reform of Australia’s anti-money laundering (AML) and counter-terrorism financing (CTF) laws.
As a Real Estate Agency, it is our responsibility now to ensure we are not aiding and assisting in the laundering of money which funds serious crimes including terrorism, child abuse and the illicit drug trade.
The purpose of these changes is to assist businesses such as ours to identify these potential risks in the course of providing your real estate services.
The industries these new laws apply to are lawyers, accountants, trust and company service providers, real estate agents and dealers in precious metals and stones.
Why the changes?
Our previous Government failed to respond appropriately to the changing threat environment in this area which made Australia an attractive place for bad people to launder illicit funds. Not great right?!
The Albanese Government has now implemented what is really, well-overdue reform.
Left untreated, Australia’s financial system would be highly vulnerable to criminal exploitation.
Now no one wants that.
What you need to do
On top of your 100 points of ID checks, you must now use software to cross-check your Landlords, Vendors and Purchasers.
Once collected, download this information and keep it on file.
You can also save it to your Property Management & Sales Trust software to keep it extra secure. If storing this data in your software system, PLEASE make sure you have two-factor Authentication set up as a MUST.
Our favourite software to use is Scantek but there are many others including:
We had a go at identifying Jerome in the office with Scantek and we can honestly say it is a painless process.
You’ll scan licenses and take a liveness check for detailed authentication which will be checked against Acceptable Means of Compliance and AUSTRACs requirements for
So be sure to look into your chosen software above and get cracking – the sooner you do it the better!
Jane Morgan is the Director of End of Month Angels, a consultancy firm specialising in Trust Accounting. Jane knows the legislative requirements of running a successful Real Estate office through her 26 years’ industry experience. Don’t trust just anyone with your trust accounting. Book an appointment with an End of Month Angel today.