AML/CTF guide for real estate agents

Can I rely on my conveyancer's AML checks instead of doing my own?

By Brad Dack, Four Foxes · AML/CTF Consultant

Short answer: generally, no - not automatically.

Real estate agents and conveyancers or settlement agents are typically separate reporting entities, each with their own AML/CTF obligations. The fact that a conveyancer is running their own checks on a transaction doesn't, by itself, satisfy your obligation as the agent to carry out customer due diligence.

Is there a formal way to rely on someone else's checks?

The Rules made under the AML/CTF Act do contain a formal reliance mechanism, which in some circumstances lets one reporting entity rely on customer due diligence already carried out by another - provided things like a documented reliance arrangement and minimum periodic reviews are in place.

We haven't seen this mechanism clearly addressed in published guidance for reliance across different professions - such as an agent relying on a conveyancer's or solicitor's checks specifically - as opposed to reliance between similar types of business. That's exactly the kind of question worth putting to your own legal adviser before treating a cross-profession reliance arrangement as available.

Note: this is an open question, not a settled position - confirm with your own legal adviser before relying on any cross-profession reliance arrangement.

What's the practical approach?

Given that open question, the practical, low-risk approach for a small or boutique agency is to run your own CDD as part of your own program, even where a conveyancer is separately doing theirs. It sidesteps the open question entirely, and this is exactly the gap a pay-per-check tool like Verify is built for: a simple way to run and evidence your own checks without depending on someone else's process or an untested legal position.

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Frequently asked questions

Can a real estate agent rely on a conveyancer's AML/CTF checks?

Generally, no, not automatically. Agents and conveyancers are typically separate reporting entities with separate obligations. A formal reliance mechanism exists under the AML/CTF Rules in some circumstances, but cross-profession reliance (e.g. agent relying on conveyancer) isn't clearly addressed in published guidance - confirm with your own legal adviser before relying on it.

Do I still need my own checks if someone else in the transaction is doing theirs?

Generally, yes. Each reporting entity's obligation is their own. The safest, simplest approach for a small agency is to run your own CDD regardless of what other parties in the transaction are doing.

Do we need to check both sides? What if someone else is checking them too?

Generally, yes. Where both parties to a transaction are your customers under the Act, your obligation to check each one is separate and doesn't get satisfied by another reporting entity checking their side. It's worth confirming this against your own transaction types and program.

This is general information, not a determination about your specific arrangements. If you're considering a formal reliance arrangement, including with a professional in a different industry, confirm your position with your own legal adviser before treating it as available. Verify by Four Foxes provides information and workflow tools to support your AML/CTF processes. It does not determine compliance, provide legal advice, or replace your legal obligations.