Regulators Should Love ACN — It Reduces Fraud, Standardises Proof, and Improves Tax Transparency
ListingMine Academy | Governance, Compliance & Regulatory Affairs
For decades, Real Estate Boards (like BOVAEP) and Tax Authorities (like LHDN) have fought a losing battle. They are trying to regulate an industry that operates largely offline, relies on verbal agreements, and often distributes commissions through cash or informal transfers.
Regulators face the same recurring nightmares:
Illegal Brokering: Unlicensed actors collecting fees.
Dispute Chaos: Endless verbal “he said / she said” conflicts.
Tax Leakage: Undeclared, off-book commission splits.
Agency Principals and Tech Founders often see Regulators as obstacles. But in the ACN era, Regulators should be our strongest allies.
Why? Because ACN (Agent Cooperation Network) is a Digital Compliance Engine that solves the very systemic problems regulators have been trying to fix through legislation for decades.
1. Reducing Fraud: Killing the "Free Rider" & Illegal Broker
The largest loophole today is the Introduction Fee. An illegal broker or inactive agent makes one phone call, contributes zero work, and demands 50%. Regulators hate this because it encourages unlicensed, unregulated participation.
How ACN Fixes It: “Proof of Work” In ACN, commission is earned by fulfilling verified roles, not by making verbal claims.
- Viewing Fee → GPS check-in required.
- Listing Fee → Valid, OCR-verified appointment letter.
- Closing Fee → Stamped SPA uploaded.
No proof = no payout. Illegal brokers cannot perform the verified roles required to unlock commission distribution. The system filters them out by design, with no enforcement effort required.
2. Standardising Proof: Ending “He Said / She Said” Forever
Regulators are overwhelmed by disputes. Agent A accuses Agent B. Agent B denies everything. No evidence exists. The Board wastes thousands of hours adjudicating noise.
How ACN Fixes It: The Digital Black Box ACN standardises “Proof of Engagement” the same way aviation relies on a flight recorder.
- Who verified the lead? → Timestamped Log
- Who opened the door? → GPS + Photo Evidence
- Who negotiated the offer? → System Status Updates + Chat Logs
If a regulator requests clarity, they simply review the Transaction Log.
Regulator: “Agent A claims they conducted the viewing. The system shows no check-in. Agent B verified on-site at 2:10 PM. Case closed.”
ACN converts subjective drama into objective data.
3. Improving Tax Transparency: Closing the Leak
The co-agency market is a tax blind spot. When agencies pay each other, the paper trail is clear. But when agents privately split commission using cash or personal bank transfers, undeclared income explodes.
How ACN Fixes It: Centralised Digital Disbursement ACN calculates commission distribution at the source of truth.
Example:
Total Commission: RM 20,000.
System Allocation:
Listing Role (Agent A) → RM 8,000
Viewing Role (Agent B) → RM 2,000
Closing Role (Agent C) → RM 10,000
Funds are then disbursed to verified bank accounts tied to tax IDs. No manual middle layer. No personal transfers. No “black money.”
For Agencies: Reduced audit risk.
For LHDN: Dramatically lower tax leakage.
For the Industry: Formalisation of previously informal income flows.
4. Professionalising the Industry: The Workflow Filter
Regulators want proper SOP compliance. But in reality, SOPs are PDF documents that most agents ignore.
How ACN Fixes It: Code is Law ACN translates SOPs into system-enforced checkpoints.
Regulator Rule: “You must have a signed appointment letter.”
Traditional Reality: Ignored until enforcement catches up — if ever.
ACN Reality: The system literally blocks publishing or claiming a listing until a valid, OCR-verified appointment letter is uploaded.
Compliance is no longer optional. Compliance becomes the default behaviour because the system does not allow non-compliance.
Summary: From "Wild West" to "Digital City"
The current real estate market behaves like a Wild West — unmonitored, inconsistent, and heavily reliant on verbal honour.
ACN transforms it into a Digital City governed by:
- Code
- Data
- Transparency
- Verified work
- Automated payouts
For Regulators: ACN is not a threat. ACN is the enforcement tool you’ve been waiting for.
It produces an audit trail that no legislation, no manual enforcement, and no paper-based system has ever been able to deliver.
ACN is the bridge between “Law as Written” and “Law as Practiced.”
