Anti-Money Laundering laws and Real Estate 1 July 2026
From 1 July 2026, anti-money laundering and counter-terrorism financing (AML/CTF) obligations will apply to certain services typically provided by the following businesses, known as tranche 2 entities:
- real estate professionals – such as real estate agents, buyers’ agents and property developers
- dealers in precious stones, metals and products
- lawyers
- conveyancers
- accountants
- trust and company service providers.
Additional virtual asset-related services will also come under AML/CTF regulation from 31 March 2026.
Find out if these changes will affect you on this page. Refer to New industries and services to be regulated | AUSTRAC
Link - Summary of AML/CTF obligations for tranche 2 entities | AUSTRAC
7th February 2025 - As emailed to Members of Real Estate Excellence as part of the February 2025 Member Update service
We shall continue to update Members on these future laws which will impact our Industry.
A sourced article below.
As anticipated, the Anti-Money Laundering and Counter-Terrorism Financing (AMT/CTF) Bill was passed by both houses on the 29 November 2024, and is set to capture the Real Estate sector for compliance with the legislation by July 2026.
Businesses captured will include real estate agents, conveyancers, vendor- and buyer-advocates, and direct property developers as well as many others. What these professions might not be aware of though is the amount of work that lays ahead of them as they prepare to meet the regulations of the newly passed Bill.
Why include Real Estate Agents in the Anti-Money Laundering and Counter-Terrorism Financing regime?
Criminals often buy high-value goods, such as Real Estate, as a way of laundering or concealing illicit funds. Australia is now being seen as an easy target for the investment of foreign proceeds of crime in Real Estate. Compared to other methods, money laundering through Real Estate can be relatively simple and requires little planning or expertise. Real Estate can also be used to conduct illegal activities such as the growing or producing of illicit drugs.
The AML/CTF reforms introduce a list of “designated services” performed by Real Estate Agents and Conveyancers, being services that have been identified as posing a risk for money laundering and terrorism financing.
What are the “designated services” relating to Real Estate?
The “designated services” that relate to Real Estate transactions, applying to both Real Estate Agents and conveyancers, will capture:
- brokering the sale or transfer of real estate on behalf of a buyer, seller, transferee or transferor in the course of carrying on a business; and
- selling or transferring real estate in the course of carrying on a business selling real estate, where the sale or transfer is not brokered by an independent real estate agent.
Where legal advice on compliance can help
The Anti-Money Laundering and Counter-Terrorism Financing regime is complex and has a lot of policies, procedures and training that will need to be introduced. The time to prepare relevant documentation and the costs involved to comply with the regime means there is little time to seek advice and be ready to comply with the legislation by 1 July2026.