02 July 2025
4 min read
#Property, Planning & Development, #White Collar Crime & Regulatory Investigations
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Australia’s real estate industry is on the brink of a major regulatory transformation with the enactment of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth).
From 1 July 2026, real estate agents who broker property transactions and property developers who sell directly off-the-plan without engaging an independent agent will be deemed ‘reporting entities’ under the national anti-money laundering (AML), counter terrorism financing (CTF) and proliferation financing (PF) regime. This change introduces a suite of new compliance obligations and shifts the industry’s focus from sales alone to surveillance, accountability, and risk mitigation.
The reforms bring Australia closer to international standards set by the Financial Action Task Force, addressing concerns that the property sector has become a blind spot in the national fight against financial crime.
Real estate agents and property developers will be subject to the AML, CTF and PF framework if they provide designated services in the course of carrying on a business, such as:
Once captured, real estate agents and relevant property developers must enrol and can do so with AUSTRAC, Australia’s financial intelligence agency, from 31 March until 29 July 2026, and develop a tailored AML, CTF and PF compliance program.
Failure to enrol by the prescribed date may result in penalties that include daily fines of up to $19,800 for businesses and $3,960 for individuals.
Real estate agents and relevant property developers are required to maintain an AML, CTF and PF program that meets all legal obligations. This program must be a written, ongoing, and regularly updated that outlines how the business identifies, mitigates, and manages the risks of its services being used for money laundering, terrorism financing or proliferation financing.
The program must be tailored to suit the nature, size, and complexity of the business and should include a comprehensive risk assessment along with documented policies, procedures, systems and controls.
There are two parts to the program:
AUSTRAC can take enforcement action for non-compliance, which may result in civil penalty orders of up to $33 million for businesses and $6.6 million for individuals. Other regulatory actions include enforceable undertakings, infringement notices, and remedial directions. Additionally, written notices may be issued directing a business to appoint an external auditor to evaluate its management of money laundering, terrorism financing and proliferation financing risks, review compliance or to undertake a formal risk assessment.
The new regime marks a turning point for real estate professionals. The focus is no longer just on securing the deal, but equally about identifying risk, knowing your customer, and ensuring your business is not an unwitting channel for financial crime.
The message from AUSTRAC is clear – the era of light-touch regulation in real estate is over. The industry must now pivot from sales to surveillance.
See our update here on how the AML/CTF regime affects other businesses.
If you have questions about how the AML/CTF laws may impact your business, or if you need support in developing a compliance program that meets your legal obligations, please get in touch with our team below.
Disclaimer
The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.
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