Key AML/CTF Obligations and Roles in Real Estate

AML/CTF is risk-based legislation. This means its application is different for every business, depending on the type and level of risk they are exposed to.

The legislation will require real estate businesses that provide ‘designated services’ to: ^[1]

1. enrol with AUSTRAC by 31 March 2026;
2. appoint an AML/CTF Compliance Officer;
3. develop a Risk Assessment specific to their business;
4. create a Compliance Program based on the Risk Assessment;
5. ensure that all relevant staff are trained and capable of meeting their responsibilities under the AML/CTF Act;
6. conduct proper vetting of all relevant staff;
7. start undertaking customer due diligence (CDD);
8. have all reporting requirements to AUSTRAC and your senior leadership in place;
9. develop processes to maintain accurate records related to AML/CTF compliance;
10. comply with the AML/CTF Act from 1 July 2026.

Who will this impact in my business?

The legislation will introduce new roles and responsibilities to all real estate businesses, with the impact most likely felt by owners, senior managers, board members, branch managers, administrators, and salespeople.

1. Board, senior management, and owners: will assume overall responsibility of AML/CTF compliance for their whole business. They will be expected to know their personal and business obligations, how they’re currently being fulfilled, and their state of compliance.
2. Compliance officer: if not already appointed, an individual will need to assume the position of compliance officer that reports directly to senior management. The compliance officer will be responsible for monitoring and maintaining AML/CTF compliance, organising training for all staff, checking that CDD is being done correctly, vetting staff backgrounds, reporting suspicious activity, and reporting to the Board & Senior Managers, and AUSTRAC.
3. Administrators: are typically responsible for reviewing and verifying the customer due diligence information collected by salespeople, and monitoring and reporting potentially suspicious activity.
4. Salespeople: will likely be responsible for collecting customer due diligence information from clients, recording the nature and purpose of the client’s relationship with the business, and reporting any potentially suspicious activity.

Get the Guide to AML/CTF for Real Estate

Learn how AML/CTF can change the sale and purchase of property experience, how senior leaders can prepare, and five things you need to keep in mind. Download your copy of the full guide here.

[1] https://www.austrac.gov.au/about-us/amlctf-reform/summary-amlctf-obligations-tranche-2-entities