Anti-Money Laundering for the Real Estate Industry (Australia)

Description

Understanding your obligations under the new laws

Criminal organisations in Australia use various real estate transactions to obscure the origins of money. Between 2020-21 and 2022-23, over $55 million of residential real estate and over $7 million in commercial real estate was confiscated as the proceeds of crime. To combat this, from July 2026, people and businesses that provide real estate services will have significant obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act. Very heavy penalties apply for breaches of the Act.

Tranche 2 AML Reforms – Who is Liable?

Under the Tranche 2 AML reforms, liability for anti-money laundering (AML) obligations in real estate primarily falls on:

• Real Estate Agents – firms and individuals acting as real estate agents
• Buyers’ Agents – professionals who represent buyers in property transactions
• Property Developers – those who directly sell property to customers without using a real estate agent

These groups will be designated as reporting entities under the amended AML/CTF Act.

What are the Obligations?

As reporting entities, they will be required to:

• Develop and implement a tailored AML/CTF program, including staff training
• Identify, assess, and mitigate the risks of money laundering and terrorism financing
• Comply with ongoing customer due diligence and transaction monitoring requirements
• Report suspicious matters to AUSTRAC.

About the Course

To help businesses and individual agents prepare for these new responsibilities, this course, comprising two short modules, outlines the requirements and sets out what actions need to be taken.

• Module One – for all staff: introduces how money laundering and terrorism financing work, and the responsibilities individuals have under the AML/CTF regime.
• Module Two – for agency managers: explains the steps required in the lead-up to July 2026, including implementing an AML/CTF Program, completing a risk assessment, Know Your Customer (KYC) and Customer Due Diligence processes, and reporting and record-keeping responsibilities.

The lessons provide ML/TF scenarios that agents may encounter in their daily business. These practical examples empower learners to act in line with their legal obligations.

“Real estate is a widely-exploited asset type for money laundering in Australia. This is due to the market stability and value appreciation, profit-generation, negative gearing benefits, housing and rental income functions of the sector.” – AUSTRAC Money Laundering in Australia 2024, National Risk Assessment

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