Real estate agents have been reminded they have less than five months to prepare for new anti-money laundering obligations which apply from July 1, 2026.
The new counter-terrorism laws will require suspicious activity to be identified and reported.
Australia’s reformed anti-money laundering and counter-terrorism financing (AML/CTF) framework introduces strict laws that carry hefty penalties.
In a statement on its website, Henzells Real Estate advises agents that “most importantly”, the laws introduce strict rules around “tipping off”, which means agents cannot disclose to a customer that a suspicion has been formed, or that a report has been made.
International real estate business technology provider Reapit General Manager Australia and New Zealand Simon Berglund said real estate had long been recognised as a vulnerable sector for money laundering due to its high transaction values and potential for complex ownership structures.
““The new obligations are an important step in aligning our industry with international standards,” Mr Berglund said in a statement.
“Real estate has at times been used to turn illegal money into what looks like legitimate property investments.
“While banks used to be the primary gatekeepers against this kind of activity, the responsibility has been expanded to include real estate agencies.”
Real estate agents will be required to:
- Conduct customer due diligence on buyers and sellers (including beneficial owners).
- When appropriate, report suspicious activity to AUSTRAC.
- Maintain comprehensive records for at least seven years.
- Appoint an AML/CTF Compliance Officer and maintain a written program that outlines how risks are identified, monitored, and managed.
- Provide ongoing staff training.
