AML Compliance for Australia’s Real Estate Industry

New legislation(Tranche 2) will extend AUSTRAC’s AML obligations to real estate agents, property developers, and buyers’ agents, starting 1 July 2026, with enrolment from 31 March 2026.

Key obligations include:

Real estate agents handle diverse clients and high-value transactions, making some deals far riskier for money laundering or terrorism financing abuse than others. A risk-based AML programme (RBA) ensures resources are focused on:

Begin by mapping out potential money laundering/terrorism financing (ML/TF) risks across your organisation. Consider factors such as:

Assess the likelihood and impact of each risk type and prioritise them accordingly.

Design and implement policies, procedures, and controls that effectively address the identified risks. This could include Enhanced Due Diligence (EDD) for high-risk customers, transaction monitoring rules tailored to specific risks, and stricter onboarding requirements for certain geographies or sectors.

Ensure that your overall AML program remains effective and aligned with regulatory expectations. Ensure regular reviews or audits of your controls, monitor the effectiveness of policies and procedures, track key compliance metrics, and ensure appropriate staff training among others.

Maintain detailed documentation of your risk assessment, controls, and monitoring activities. Ensure that your reporting to senior management and regulators demonstrates a clear, risk-aligned compliance framework.

By focusing on high-risk areas, organisations can allocate compliance resources more effectively, reducing unnecessary expenditure on low-risk activities. A well-implemented RBA allows organisations to respond faster to new risks or regulatory expectations. Demonstrating a comprehensive RBA builds trust with regulators and may reduce the risk of enforcement action.

MemberCheck’s AML compliance toolkit assists real estate agents with:

What are the Tranche 2 Reforms?

The Tranche 2 Reforms are a set of proposed legislative reforms aiming at broadening the scope of Australia's Anti-Money Laundering and Counter-Terrorism Financing laws to include more businesses and professions.

Which industries will be affected by the Tranche 2 Reforms?

The Tranche 2 Reforms will affect real estate agents, precious metals dealers, lawyers, trust and company service providers, and accountants.

Why are the Tranche 2 Reforms necessary?

The Tranche 2 Reforms are required to align with global standards established by the Financial Action Task Force (FATF), which recommends that countries regulate DNFBPs within their AML/CTF frameworks and to strengthen Australia's ability to detect, prevent, and combat money laundering and terrorism financing activities.

What steps should regulated entities take to comply with the Tranche 2 Reforms?

Regulated entities must conduct detailed risk assessments, develop and implement strong AML/CTF programs, ensure that employees receive adequate training on AML/CTF obligations and the entity's compliance program, establish systems for reporting suspicious activities and keeping records in accordance with regulatory requirements.

What is the AML Amendment Act 2024?

The Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF)Amendment Bill 2024, passed by the Australian Parliament on 29 November 2024, marks a major milestone in Australia’s efforts to combat financial crime.

This legislative reform strengthens the AML/CTF Act 2006 by:

• Expanding the AML/CTF regime to include certain high-risk professions such as lawyers, accountants, real estate agents, trust and company service providers, and dealers in precious metals and stones. These sectors, often referred to as ‘Tranche 2’ entities, were previously outside the scope of AML/CTF obligations.
• Simplifying compliance to make it easier for businesses to understand and meet their AML/CTF responsibilities.
• Modernising the regulatory framework to reflect evolving business practices, digital technologies, and sophisticated illicit finance tactics.