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As AML/CTF obligations commence for lawyers, conveyancers and real estate agents, one misconception continues to surface across the industry.
That Reliance is somehow non compliant, prohibited, or too risky to use. The reality is quite the opposite.
Reliance is not a workaround. It is not a loophole. It is a mechanism specifically contemplated within Australia’s AML/CTF framework, allowing reporting entities involved in the same transaction to leverage customer due diligence already completed by another reporting entity.
In fact, AUSTRAC has published dedicated guidance explaining how Reliance works and how reporting entities can use it as part of their AML/CTF compliance obligations.
Reliance allows one reporting entity to use customer due diligence information that has already been collected and verified by another reporting entity.
In practical terms, this means a real estate agent, lawyer and conveyancer involved in the same property transaction do not necessarily need to ask the same client to repeatedly complete the same AML checks.
Instead, where an appropriate Reliance arrangement exists, one party can conduct the checks and another party can rely on the outcome.
The result is less duplication, a better client experience and a more efficient transaction process.
AUSTRAC has published a dedicated Reliance framework and guidance for reporting entities.
According to AUSTRAC:
“Reliance means relying on customer identification and verification that has been conducted by a third party…It allows you to rely on know your customer (KYC) information that’s been collected and verified by a third party reporting entity.”
Importantly, AUSTRAC has published extensive guidance covering:
The existence of dedicated guidance, implementation pathways and supporting resources demonstrates that Reliance is an accepted component of Australia’s AML/CTF framework and provides reporting entities with a practical way to reduce unnecessary duplication while maintaining compliance outcomes.
When it comes to AML/CTF compliance, few organisations have played a more significant role in helping industry prepare for Tranche 2 reforms than Grant Thornton.
Grant Thornton was engaged by AUSTRAC to assist in the development of the AML/CTF Starter Program Kits that thousands of reporting entities are now using to establish their AML/CTF programs.
Richard Storey is a Partner in Risk Consulting at Grant Thornton Australia and has extensive experience advising organisations on AML/CTF obligations, governance, risk management and regulatory compliance.
According to Richard, Reliance is an important mechanism within the AML/CTF framework that can help reduce duplication across property transactions.
“Reliance is specifically contemplated within Australia’s AML/CTF framework and provides a practical mechanism for reporting entities involved in the same transaction to leverage customer due diligence already performed by another reporting entity.”
“The objective of AML/CTF regulation is not to create unnecessary duplication for businesses or customers. Reliance allows firms to achieve strong compliance outcomes while delivering a better experience for clients.”
“Where appropriate controls and agreements are in place, Reliance can help lawyers, conveyancers and real estate agents work together more efficiently while maintaining confidence in their AML/CTF obligations.”
Without Reliance, property buyers and sellers may be required to complete substantially the same AML checks multiple times throughout a transaction.
This can result in:
Reliance was specifically designed to help reduce this duplication.
By allowing professionals involved in the same transaction to leverage customer due diligence already performed by another reporting entity, firms can focus on delivering better service while maintaining robust compliance outcomes.
Reliance is not a future concept or a workaround. It is not a loophole.
It is a recognised and supported mechanism within Australia’s AML/CTF framework.
AUSTRAC has published dedicated guidance explaining how Reliance works.
Grant Thornton, the organisation that assisted AUSTRAC in developing the industry’s AML/CTF Starter Program Kits, recognises Reliance as an important tool for reducing duplication while maintaining compliance outcomes.
For lawyers, conveyancers and real estate agents looking to simplify compliance, improve client experience and strengthen professional relationships, Reliance represents one of the most significant opportunities created by the Tranche 2 reforms.
While the legislation provides the framework, Securexchange provides the practical workflow.
Securexchange enables lawyers, conveyancers and real estate agents to facilitate Reliance digitally through a streamlined process designed specifically for property transactions.
Using Securexchange, firms can:
Combined with the Securexchange Compliance Centre, agents can use the solution as their all-inclusive platform to build their AML/CTF program, train & onboard staff and facilitate KYC themselves or through Reliance
Book a demonstration today to learn more about how Reliance can streamline your AML/CTF compliance.
Watch our complimentary on demand webinar:
AML/CTF Tranche 2 made simple: practical strategies for agents