Insights | AML/CTF Amendment Bill & Real Estate
Read our high-level update on what the Anti-Money Laundering/Counter Terrorism Financing Amendment Bill means for your real estate business.
The Australian Government is seeking to strengthen and modernise the way money laundering and terrorism financing is prevented in Australia. The Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Amendment Bill was introduced into Parliament on 11 September 2024. If passed by Parliament, the Bill would amend the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).
The Bill has 3 key objectives
- Expand the AML/CTF regime to include additional services provided by Tranche Two (T2) entities, including real estate professionals, dealers in precious stones and precious metals, and professional service providers (such as lawyers, conveyancers, accountants, and trust and company service providers).
- Modernise the regulation of digital currency of virtual asset and payments technology.
- Simplify and clarify the AML/CTF regime to increase flexibility, reduce regulatory impacts, and support businesses in better preventing and detecting financial crime.
Time Frame
- 31 March 2026 – All current reporting entities must be compliant by this date, meaning they need to have a Risk Assessment and a compliance program operational.
- 31 March 2026 – Tranche Two (T2) entities may commence enrolment with AUSTRAC.
- 1 July 2026 – T2 entities must be enrolled with AUSTRAC and fully comply with the AML/CTF Act, including having their documents, processes, and staff training completed.
Key Measures for Real Estate
The Bill introduces a new ‘designated service’ for brokering the sale, purchase, or transfer of real estate on behalf of a person, in the course of conducting business.
This designated service primarily applies to real estate agents and businesses that represent:
- a seller (vendor) to sell 'real estate' (for example, a typical seller's agent service), or
- a buyer to identify and purchase 'real estate' (for example, a buyer's agent service).
A person who provides a designated service to a customer is a ‘reporting entity.’ In most cases, the reporting entity will be a business (for example, the real estate agency) rather than an employee of the business.
Also included is the selling or transferring of 'real estate' in the course of conducting a business that sells real estate, where the sale or transfer is not brokered by an independent real estate agent. For example, this service would encompass property developers and other businesses that sell house and land packages, apartments off the plan, and blocks of vacant land in new subdivisions. This includes scenarios where the property developer or business sells the real estate using their own in-house real estate agents, sales, or marketing employees instead of engaging a real estate agency for this work.
Activities not included are: services related to residential tenancy agreements; property management; leasing of commercial real estate; or auctioneer services, unless the auctioning services are provided by the seller’s agent in conjunction with brokering the sale of the real estate.
What must you do?
As a real estate business that undertakes 'designated services,' you are obliged to have the following in place on 1 July 2026:
- Enroll with AUSTRAC.
- Develop a Risk Assessment tailored to your business.
- Implement an AML/CTF Program that mitigates the AML/CTF risks within your business.
- Ensure all relevant personnel are trained and capable of fulfilling their responsibilities under the AML/CTF Act.
- Undertake customer due diligence.
- Be ready to undertake all required reporting to AUSTRAC.
- Maintain and store records related to your AML/CTF compliance.
The information provided here is general in nature and is provided for informational purposes only. It does not constitute legal, financial, or other professional advice, and should not be relied upon as such. For advice specific to your individual circumstances, we recommend consulting a qualified professional. While every effort has been made to ensure the accuracy of the information, we do not warrant or guarantee its completeness, reliability, or suitability for any purpose. In reading this information you acknowledge and agree that we are not responsible or liable for any decisions or actions taken based on the information provided.