AML/CTF one month in: The reality, the challenges, and what smart agencies are doing differently

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By Alex Antal, Head of Securexchange

It’s been one month since AML/CTF obligations came into effect for Australian real estate agencies, and by now, most have completed their initial rollout. Training has been delivered, new processes are in place, and teams are beginning to settle into the new compliance requirements.

The conversations I’m having now with principals and agents feel noticeably different to those early discussions. Less about what needs to be done, and more about how it’s actually playing out in practice; and there’s a mix of reactions in that. Yes, there’s frustration in some areas, but there’s also a growing sense of clarity in others, especially as teams start to understand what works, what doesn’t, and where things can be simplified.

While AML/CTF has introduced new requirements, it’s also prompted a lot of agencies to take a closer look at how their workflows operate, and that’s not necessarily a bad thing.

What’s happening on the ground

Across agencies of all sizes, a few consistent themes are emerging. Some of them are challenges, others are simply adjustments, but together, they’re shaping what the first month of compliance really looks like.

Agents are telling us they’re spending more time on administration than expected, particularly around identity verification. Clients are needing more follow-ups to complete checks, long-term vendors are asking more questions about why the process has changed, and in some cases, transactions are taking longer simply because information isn’t coming through as quickly as it used to.

At the same time, there are positives starting to show through as well.

Early feedback suggests that once clients understand the reason behind the checks, the conversation is often easier than expected. There’s also a growing appreciation for more structured processes, particularly in larger agencies where consistency across teams has historically been a challenge, so it’s not one-directional.

It’s a mix of pressure points and progress, but the common thread remains the same: time. Where it’s going, and how much of it is being spent on administration versus client-facing activity.

The biggest challenges emerging so far

  1. The admin load is heavier than expected
    Most agencies knew there would be extra steps involved with AML/CTF compliance. What’s become clearer in practice is just how quickly those steps accumulate.

    It’s not one major task that creates pressure, but a steady stream of smaller ones, collecting documents, following up clients, checking completeness, managing records, and answering questions as they come up.

    Individually, each step makes sense, but together, they start to pull attention away from listings, negotiations, and day-to-day client work.

    At the same time, many principals have told me that the structure it brings to record keeping and documentation is actually a positive shift, it’s just the operational overhead that needs to be managed carefully.

  1. Clients are being asked to repeat themselves
    This is one of the most common friction points emerging. From a client’s perspective, they’re providing the same information multiple times and to multiple stakeholders throughout a single transaction. Even when each request is valid, the experience can feel repetitive.

    For agents, that often translates into extra follow-up, extra explanation, and extra effort to keep the process moving smoothly.

    On the positive side, where agents are clearly explaining the “why” behind the process, clients are responding far better than many expected. In most cases, once the purpose is understood, resistance drops quickly. So, the issue isn’t acceptance, it’s duplication, and that’s where the opportunity lies.

  1. Confidence is still building across teams
    Even in well-prepared agencies, there’s still a settling-in period. Teams are working through real scenarios as they come up: what documentation is sufficient, how to handle exceptions, and how to ensure everything is being captured correctly.

    That naturally creates a bit of caution early on, but what’s encouraging is how quickly confidence builds with repetition. The more teams apply the process, the more familiar it becomes, and the smoother it starts to run.

    In many cases, agencies are already reporting that early uncertainty is starting to ease.

  1. Managing sensitive information is now front of mind
    AML/CTF has increased the volume of sensitive data flowing through agencies: identity documents, verification records, and personal information that needs to be handled carefully. That’s prompting a positive shift in attention around data security and storage practices.

    Many principals are now actively reassessing how information is stored, shared, and accessed across their teams. While this adds a layer of responsibility, it’s also driving better awareness of risk and stronger internal processes, particularly in agencies that previously relied heavily on email or local storage.

The smarter way agencies are managing compliance processes

One thing I’ve noticed is that the agencies starting to find their rhythm aren’t necessarily doing more than everyone else. In many cases, they’re doing less but doing it more intentionally.

The biggest difference is that they’re actively looking for ways to reduce duplication, because a lot of the friction right now isn’t coming from AML/CTF itself. It’s coming from the number of times the same information is being collected, checked, and stored across different points in a transaction. That’s where the Reliance process, part of AUSTRAC framework, starts to make a real difference.

Instead of treating identity verification as something that needs to be repeated at every stage, Reliance allows verified client onboarding checks to be used across Tranche 2 entities in the transaction. Once a client has been verified, that information doesn’t need to be re-requested multiple times and the transaction can move on in a more consistent way.

For clients, that means fewer repetitive requests and a smoother experience, and for agents, it means less chasing, less duplication, and more time focused on higher-value work. It’s most common that agents who are leveraging this are relying on checks completed by lawyers or conveyancers in the same transaction.

Importantly, this is also not happening in isolation. As Securexchange sits within the broader InfoTrack ecosystem, which is already widely used by lawyers and conveyancers across Australia, there’s an established, trusted network supporting the transaction from multiple sides. That connectivity means information doesn’t need to be emailed back and forth, re-entered into different systems, or manually reconciled between parties. Instead, it can be shared securely within a connected environment where all parties are working from the same verified source, and that’s really where the shift is happening.

Not in adding more process, not in removing the duplication that sits around it.

Where this is all heading

If the first month has shown anything, it’s that AML/CTF itself isn’t the hardest part for most agencies, it’s the friction that sits around it. The extra steps, the repetition, the manual handling, and the uncertainty while teams get up to speed.

The positive side is that these are exactly the kinds of challenges that improve quickly once better systems and habits are in place, and we’re already starting to see that shift.

The agencies that are finding their rhythm fastest are the ones focusing on simplification, streamlined workflows, reducing duplication, and making compliance part of the process rather than something sitting alongside it.

When that happens, compliance just becomes part of how the business runs, and when that’s the case, agents get back something incredibly valuable: time. Time for listings, time for clients, time for the work that drives growth, and that’s where things are heading next.