Arizto transforms AML compliance with First AML

Situation

Arizto, a progressive real estate agency, with a tagline of “No upfront costs - no sale, no fee!” was experiencing remarkable growth. With limited resources and a lean team at the outset of their business they had chosen to outsource their compliance function to First AML.

This model had served them well during their early stages. Brendon Pierce, Principal Agent and National Compliance Manager reflects, "We were outsourcing our compliance processing and the specialists were fantastic and everything was running really well."

However, as often happens with rapidly expanding businesses, Arizto was about to face some growing pains.

Challenge

Arizto's meteoric success brought with it a new set of challenges. Within the last 12 months, Arizto has doubled in size, putting pressure on their AML compliance processes resulting in significant impact on people and process:

1. Slower turnaround times for AML checks.
2. Rising frustration among property owners and vendors due to slower turnaround times.
3. Limited internal resources dedicated to AML compliance.
4. Lack of instant visibility on case status.

Brendon notes, "We grew 100% within 12 months, we just had this massive growth of listings coming in and although the specialist team were doing a really good job, it just put a real pressure on them. So we found that our turnaround time for cases ended up dropping, and we were getting frustration from both vendors and agents."

It became clear that Arizto needed a more scalable solution to manage their AML compliance effectively.

Solution

The Arizto team had been shown Source, First AML’s self-managed AML compliance platform 6 months previously. However, their lack of self-confidence to conduct AML comprehensively, especially when it came to complex cases that include trusts or international clients, put them off making a switch.

But after even more growth, and the introduction of compliance rules, custom requirements, and the trust deed reader into Source, Arizto made the strategic decision to transition off the outsource model. Several factors influenced their decision:

1. Source’s intuitiveness.
2. Potential for significantly improved turnaround times.
3. Similarity to their existing workflow, promising a smooth transition.
4. Comprehensive support during implementation.

Supporting the transition was a well-structured implementation process, "We had a 30-day turnaround between the two platforms, which was quite helpful. We had time to close some old cases. And then we also had the option to put complex cases through the specialists if we weren't quite confident to do it."

This approach allowed Arizto time to hire an internal compliance assistant and build confidence in their internal compliance skills, all the while ensuring compliance continuity.

Outcome

The switch to Source has resulted in impressive outcomes for Arizto across multiple fronts:

Dramatic reduction in turnaround times

"Case turnaround times have gone from 6 days to 3 which makes a massive difference. As soon as you've got real estate involved, you've got owners that are wanting to get on the market and sell. The longer it takes them to get things like this done, the more frustration that can build."

Significant cost savings

Even with the new internal hire the cost savings were significant. This cost efficiency was particularly important for Arizto's business model, which “prioritises keeping more money in our agents' pockets”. It also allowed them to engage a third-party AML consultant to ensure their programme was set for future changes.

Better visibility, control and efficiency

"With everything being in Source, I can just review it directly because I know everything’s there. I can make notes, see or add exemptions and just pass it off to review straightaway. Which made a big difference." This streamlined process allowed Arizto to manage their AML compliance more effectively, even as their business continued to grow.

Strengthened compliance programme

"I think being able to do it ourselves, and to check everything and relate that properly has given us a more airtight AML programme compared to having other people look at it." By bringing AML compliance in-house, Arizto gained greater control and confidence in their processes.

Improved scalability

"We’ve grown again since moving to Source and the turnaround times have stayed the same because we've been able to control it with less hours." This scalability is giving Arizto a robust compliance function that isn’t a drag on their continuing growth.

Professional development

Perhaps most importantly, the transition to Source has fostered significant professional development within the Arizto team. "We have grown from this new knowledge and I don't think we would have had if we had kept with the outsourced model."

Conclusion

By implementing Source, Arizto successfully transformed their AML compliance from a growing pain into a strategic advantage. They've not only addressed their immediate challenges but also positioned themselves for sustainable, compliant growth in the competitive real estate market.

Arizto's journey demonstrates that with the right tools and approach, companies can turn regulatory compliance from a burden into an opportunity for increased efficiency, cost savings, and team development.