AML Partners signs 300 firms as property rules tighten

AML Partners has signed more than 300 property businesses in four months as Australia extends anti-money laundering rules to much of the sector.

Founded by former bank compliance specialist John Nguyen, the company is targeting a market reshaped by AUSTRAC's Tranche 2 reforms. The changes bring real estate agents, buyer's agents, conveyancers, property developers, accountants and lawyers into the anti-money laundering and counter-terrorism financing regime for the first time.

For many small agencies, the reforms create obligations that have typically sat within large financial institutions. Businesses newly covered by the rules must enrol with AUSTRAC by 29 July. Penalties for non-compliance can reach AUD $33 million for companies and AUD $6.6 million for individuals.

AML Partners says its FlowAML platform combines customer due diligence, identity verification, politically exposed persons and sanctions screening, and suspicious matter reporting in a single workflow. It also writes anti-money laundering and counter-terrorism financing programs for clients, trains staff, and handles ongoing monitoring and reviews.

The model is aimed at agencies without in-house compliance teams, including smaller suburban operators, buyer's agents and other property professionals now facing regulatory checks that were not previously part of their day-to-day work.

New obligations

The Tranche 2 reforms are expected to affect about 80,000 businesses across Australia. In property, they extend beyond traditional estate agencies to a broader group of advisers and intermediaries involved in transactions.

The shift matters because regulators have long viewed property as vulnerable to money laundering risks. Extending the regime means firms now need formal processes to verify customers, screen for higher-risk individuals, keep records and report suspicious matters.

Nguyen said the gap between those requirements and the resources available to smaller firms was a key reason for starting the company. His background includes roles at Commonwealth Bank, ANZ, Suncorp and Ernst & Young.

"I spent more than 10 years inside banks, and this work took whole floors of people," said John Nguyen, Founder, AML Partners.

He said the platform is designed to move that work outside the agency. "FlowAML was built so that person can complete a check in a few minutes and trust that the screening and record-keeping behind it would stand up in any bank I have worked in. Our clients never have to become compliance officers. That is our job," said Nguyen.

Property focus

AML Partners is focused on the property sector rather than a broader range of industries. Its clients include agencies within networks such as Ray White, LJ Hooker, Harcourts, Belle Property, PRD and Christie's International, as well as buyer's agents including Henderson Advocacy, Investor Kit, House Finder and Your Property Your Wealth.

Its screening network has completed 60 million checks across 195 countries. That reach matters for property businesses dealing with overseas buyers, complex ownership structures and sanctions risks, all of which can increase the compliance burden for smaller firms.

Even so, the immediate challenge for many agencies is more basic: understanding what the law now requires and putting a repeatable process in place before the deadline. For businesses that have not previously dealt with anti-money laundering regulation, that can mean new systems, staff training, written procedures and routine client checks.

Industry advisers have warned that the practical effect of the reforms will be felt most sharply by smaller operators. Unlike banks, they are unlikely to have dedicated teams for onboarding, risk management, reporting and record-keeping, creating demand for outside providers that can package those tasks into a service.

AML Partners' early client growth suggests that demand is already emerging. According to Nguyen, the company signed more than 300 businesses within four months.

"Three hundred businesses in four months tells me agencies want to do this properly," said Nguyen.

"They just need someone to make it doable," said Nguyen.