PEXA Clear launches AML compliance tool for property

PEXA Clear has launched an AML/CTF compliance product for property professionals as AUSTRAC's tranche 2 rules take effect for real estate agents, legal practitioners and conveyancers.

The product is aimed at businesses involved in property transactions that now face anti-money laundering and counter-terrorism financing obligations. Built specifically for the property sector, it is intended to fit into settlement workflows those businesses already use.

Information collected from buyers, sellers and external data sources can be entered once and reused within the same transaction by other designated service providers where appropriate. The aim is to reduce repeated requests for the same information from customers dealing with agents, lawyers and conveyancers during a property sale or purchase.

The platform also connects with Real Time Agent, Actionstep, Mantis Property and Aro, allowing users to begin compliance checks from within software they already use for day-to-day work.

Pricing model

PEXA Clear is priced at AUD $40 plus GST per transaction for Australian and New Zealand individuals. Charges for business entities start at AUD $65 plus GST per transaction, while larger organisations can negotiate pricing based on transaction volumes.

The service is offered on a pay-per-use basis, with no lock-in contracts, sign-up fees or subscriptions.

Russell Cohen, Chief Executive Officer and Group Managing Director of PEXA Group, said the product was designed around the needs of the sector. "PEXA Clear is built from the ground up with the needs of property professionals in mind. With no lock-in contracts, the solution minimises cost barriers and is designed to reduce administrative burden not only for our customers, but also for Australian property buyers and sellers," Cohen said.

Early users include Simonds, Clarendon Homes and One Percent Property, which PEXA presented as evidence of demand for a compliance product tailored to property transactions.

"The early adoption of PEXA Clear by organisations including Simonds, Clarendon Homes and One Percent Property reflects the industry's demand for a purpose-built compliance solution that fits seamlessly into existing settlement workflows. From its core functionality through to the supplementary educational resources that support it, PEXA Clear is designed to make AML/CTF compliance simpler, more efficient and less time-consuming," Cohen said.

Checks and records

The system uses an integration with FrankieOne for identity verification and screening. According to PEXA, this includes checks covering KYC, KYB, politically exposed persons, sanctions and adverse media.

PEXA Clear draws on more than 300 global data sources and databases. It is designed to verify identities, monitor transaction risk and identify possible links to financial crime as a matter progresses.

Risk monitoring continues throughout the property transaction and can reflect changes to supplied information. The product also provides guidance on what users may need to request or document when a matter presents higher risk, including when escalation steps such as a Suspicious Matter Report should be considered.

Another part of the offering is record-keeping. PEXA Clear maintains reporting and audit trails intended to support annual and ad hoc reporting to AUSTRAC and help businesses show how compliance steps were handled.

Broader business

PEXA Group is listed on the ASX and operates across property-related software and data services. Its businesses include PEXA Exchange, PEXA Tracker, PEXA Key, PEXA Projects, PEXA Planner and PEXA Clear, along with Value Australia.

According to the group, PEXA Exchange has handled more than 20 million property settlements in Australia since 2013. It entered the UK market in 2022, although PEXA noted that PEXA Clear is unrelated to PEXA Exchange.

For property professionals now required to meet tranche 2 obligations, the launch adds a new specialist option in a market adjusting to tighter scrutiny of how transactions are assessed, recorded and reported.