Real estate professionals face rising AML scrutiny across markets. This article breaks down identity verification, source of funds, and beneficial ownership rules in the U.S., Canada, UK, EU, and Australia – and shows how iComply helps automate compliance across agents, lawyers, and lenders.
From regulators to investigative journalists, scrutiny is intensifying, compliance expectations are evolving. Brokers, lawyers, developers, mortgage professionals, and title companies all have a role to play.
Shifting AML Expectations in Real Estate
United States
- Regulators: FinCEN, state real estate commissions
- Requirements: Geographic targeting orders (GTOs), beneficial ownership reporting (CTA), SARs, and KYC for buyers and entities
Canada
- Regulators: FINTRAC, provincial real estate councils
- Requirements: KYC, source of funds verification, PEP/sanctions screening, STRs, and compliance program requirements (as reinforced by the Cullen Commission)
United Kingdom
- Regulators: HMRC, FCA (for lenders), SRA (for law firms)
- Requirements: Client due diligence, UBO checks, transaction monitoring, and compliance under MLR 2017
European Union
- Regulators: National AML authorities under AMLD6
- Requirements: Risk-based customer due diligence, UBO transparency, STRs, and GDPR-aligned reporting
Australia
- Regulator: AUSTRAC (legislation pending for real estate-specific coverage)
- Requirements: AML risk management for law firms, lenders, and trust accounts; expected expansion to include property professionals
Real Estate-Specific Risk Factors
1. Complex Ownership Structures
Use of shell companies, nominees, and trusts can obscure true buyers.
2. Source of Funds Obscurity
Large cash deposits or offshore funding require enhanced scrutiny.
3. Multi-Party Transactions
Buyers, sellers, agents, lawyers, lenders, and developers often use disconnected systems.
4. Regulatory Patchwork
Requirements vary by jurisdiction and professional role.
How iComply Helps Real Estate Professionals Stay Compliant
iComply enables unified compliance across real estate workflows—from individual onboarding to multi-party coordination.
1. Identity and Entity Verification
- KYC/KYB onboarding via secure, white-labeled portals
- Support for 14,000+ ID types in 195 countries
- UBO discovery and documentation
2. Source of Funds Checks
- Collect and validate financial statements, employment records, or declarations
- Risk-based automation of EDD triggers
- Document retention for regulator inspection
3. Sanctions and Risk Screening
- Real-time screening of all participants (buyers, sellers, brokers, law firms)
- Automated refresh cycles and trigger alerts
4. Cross-Party Case Collaboration
- Connect agents, legal counsel, and lenders in a single audit-ready file
- Assign roles, track tasks, and escalate within shared dashboards
5. Data Residency and Privacy Compliance
- Edge computing ensures PII is encrypted before upload
- Compliant with PIPEDA, GDPR, and U.S. state laws
- On-premise or cloud deployment options
Case Insight: Vancouver Brokerage
A Canadian real estate firm used iComply to digitize ID checks and SoF verification for domestic and foreign buyers:
- Reduced onboarding time by 65%
- Flagged two nominee structures linked to offshore trusts
- Passed a FINTRAC audit with zero deficiencies
Final Take
Real estate professionals can no longer afford fragmented compliance. With global pressure mounting, smart automation ensures faster onboarding, better oversight, and fewer audit risks.
Talk to iComply to learn how we help brokers, lawyers, and lenders unify AML workflows – without slowing down the deal.
