FrankieOne partnership powers PEXA compliance entry
Property settlement platform operator PEXA Group is entering the compliance software market ahead of mandatory anti-money laundering regulations for real estate professionals taking effect in July.
The company's PEXA Clear solution will launch the same month AUSTRAC's Tranche 2 AML/CTF regulations commence, extending anti-money laundering obligations to real estate agencies, conveyancers and legal practitioners for the first time.
AUSTRAC's Tranche 2 regulations represent a significant expansion of anti-money laundering obligations into the property sector. The regulations were developed following concerns about property transactions being used to launder criminal proceeds, a long-standing issue highlighted by organisations including Transparency International and the Financial Action Task Force.
The timing presents both a market opportunity and operational challenge. With registrations opening 31 March 2026, practitioners will have less than four months to implement and test compliance systems before the regulatory deadline.
PEXA Clear is being developed in partnership with FrankieOne, a global identity verification platform that counts Commonwealth Bank, Westpac and Shopify among its clients. The Real Estate Institute of Queensland will provide training support for real estate agents.
The solution handles identity verification using selfies and government-issued IDs, conducts Know Your Business and Know Your Customer checks, and screens individuals against Politically Exposed Persons lists, sanctions databases and adverse media sources.
PEXA claims the system provides "actionable guidance" on when to escalate risks, including prompts for Suspicious Matter Reports to AUSTRAC. It maintains audit trails to support compliance reporting requirements.
The company describes PEXA Clear as "purpose-built" for the Australian property industry, though it has not disclosed pricing, expected customer numbers, or specific technical integration details with existing property management and legal practice systems.
Amelia Howell, Head of Customer Growth and Solutions at PEXA Clear, said the company's decade-long involvement in Australian property settlements provides insight into transaction risks.
"PEXA Group has a comprehensive view of not just the complexities, but also the touchpoints for risk in a property transaction," she said.
FrankieOne CEO Simon Costello said the partnership "combines FrankieOne's best-of-breed identity, KYB and risk orchestration capabilities with PEXA Clear's deep understanding of property workflows."
The solution will operate independently from PEXA's Electronic Lodgement Network for property settlements, which has facilitated more than 20 million transactions since 2013.
Product demonstrations are currently available, with a series of roadshows scheduled to commence in February.