New anti-money laundering and counter-terrorism compliance measures are being introduced for real estate professionals. These changes intend to prevent money laundering and other fraudulent activity for ‘designated services’. The real estate sector has been identified as a 'designated service' due to the significant risk of money laundering or concealing illicit funds through property transactions.
The reforms apply to real estate professionals who sell or buy residential, commercial, industrial, and agricultural property and land. Property management and commercial leasing are exempt. Real estate professionals will be required to monitor, record, and report suspicious activity using rules and mechanisms provided by the federal government.
Compliance for real estate professionals will take effect in July 2026, with the governing rules and core guidance to be finalised and released in the coming months. The REIV is engaged with the federal government and industry to provide training and education for real estate professionals.
Overview
What You Need to Know
Understanding the Reforms
REIV Advocacy
Resources
October 2025: Finalisation of core guidance
October to November 2025: Targeted consultation on sector-specific guidance in industry working groups
December 2025: Finalisation of sector-specific guidance and program starter kits for newly regulated sectors, including real estate.
31 March 2026: Enrolment opens for real estate professionals
1 July 2026: AML/CTF obligations commence for real estate professionals
In collaboration with First AML, we’re rolling out a staged education program, with tailored webinars to help members prepare for their AML/CTF obligations.
Register below to get equipped with the tools, knowledge and confidence to meet your AML/CTF obligations by 1 July 2026.
27 October 2025 | 11:00 am - 12:00 pm | Online | Free for Members
Customer Due Diligence (CDD) is a key requirement under the upcoming AML Tranche 2 reforms - and getting it right is critical for real estate professionals.
17 November 2025 | 11:00 am - 12:00 pm | Online | Free for Members
With AML Tranche 2 reforms approaching, now is the time to prepare your organisation for the upcoming compliance obligations. This practical session will walk you through what needs to be done - from internal preparation to client communication.
Governs the legal framework and obligations for reporting entities to prevent, detect, and respond to money laundering and terrorism financing.
Provides detailed operational requirements and guidance on how to comply with the AML/CTF Act.
Practical guidance on implementing AML/CTF obligations, including risk assessments, customer due diligence, reporting suspicious matters, and compliance program requirements.
Property transactions have been identified as high-risk services due to the increased opportunity for exploitation through money laundering in the real estate sector. It has not been implied that real estate professionals are actively seeking out or facilitating opportunities for money laundering.
Under the AMLCTF legislation, real estate professionals will be required to verify client identities, assess transaction risks, and report suspicious activities to AUSTRAC. Real estate agencies will need to implement ongoing monitoring, maintain records, and establish an internal compliance program that includes staff training and the appointment of a compliance officer.
Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws are designed to prevent criminals from using the financial system to hide illicit funds or finance terrorism. These laws require businesses to identify, manage, and report suspicious activity related to large financial transactions. While banks and financial institutions have long been regulated under these laws, the real estate sector is increasingly recognised as a vulnerable point for money laundering due to the high-value nature of property transactions.
Real estate is an attractive avenue for money laundering because it allows criminals to move large sums of money through seemingly legitimate purchases. Buying and selling property can help disguise the origins of illegal funds, making it harder for authorities to trace. As a result, the federal government is tightening regulations, and real estate professionals will be required to play a more active role in detecting and reporting suspicious activity, such as unusual payment methods or transactions that trigger red flags.
The AML/CTF regime helps businesses identify risks and prevent or disrupt criminal activities. It also provides law enforcement with valuable intelligence in the fight against serious and organised crime, helping to protect the Australian community and businesses from serious harm. In Australia, real estate professionals are not yet formally regulated under the AML/CTF Act. However, legislation passed in November 2024 introduces new compliance obligations for real estate professionals, set to commence in July 2026. Typical obligations under AML/CTF legislation include identity checks, due diligence, and reporting obligations to help reduce financial crime in the real estate sector.
In its submission to AUSTRAC, the REIV provided the following feedback to the government:
1. Know Your Customer (KYC) obligations would be most effective at the point of settlement. The REIV recommended reviewing the delayed due diligence rules to enact KYC obligations at the point of settlement. This would ensure that the final buyer is identified accurately and that AML/CTF obligations are met at a pragmatic juncture.
2. Reliance rules should be expanded to allow real estate agents to unconditionally rely on legal representatives and financial institutions. The REIV recommended reviewing the reliance rules to ensure real estate agents can refer to them to meet their AML/CTF obligations. This includes unconditional certainty of relying on reliance rules following verification by legal representatives and financial institutions.
1. Expand the role of key authorities already embedded in the real estate transfer process. Real estate transactions involve key government authorities, including SERV and the State Revenue Office, as well as large-scale organisations such as PEXA. Consider expanding their roles to fulfil AML/CTF obligations and compliance measures.
2. Established government technologies, including MyGov, can play an integral role. Existing federal government technology that interacts with the national security infrastructure, including the MyGov application, should be utilised as a component of the VOI process.
3. AUSTRAC must provide definitive and realistic guidelines for its monitoring and compliance framework. AUSTRAC must provide definitive and realistic guidelines for compliance measures. It needs to consider the prevalence of scenarios that may trigger compliance measures when there is no likelihood of fraudulent behaviour.
Advocacy Outcomes
The government has reflected several of the industry’s recommendations in the final AML/CTF rules. Most notably, CDD has been deferred until settlement, aligning with REIV’s recommendation. As a result, real estate agents may now rely on a buyer’s conveyancer or other reporting entity for initial CDD checks. These outcomes represent important advocacy wins for the real estate sector, helping to ensure obligations are workable and proportionate.
The government has reflected several of the industry’s recommendations in the final AML/CTF Rules. Most notably, CDD has been deferred until settlement, aligning with recommendations, and without the previously proposed requirement that settlement be conditional on completion of initial CDD. In addition, real estate agents may now rely on a buyer’s conveyancer or other reporting entity for initial CDD checks. These outcomes represent important advocacy wins for the real estate sector, helping to ensure obligations are workable and proportionate
Attorney-General’s Department – Anti-Money Laundering and Counter-Terrorism Financial Amendment Bill
The Anti-Money Laundering and Counter-Terrorism Financial Amendment Bill outlines all changes introduced and passed by the Parliament of Australia in November 2024. These include the reforms that introduced compliance obligations and mechanisms for real estate professionals. The bill does not contain the rules governing the real estate sector’s obligations, as these are being finalised through 2025.
AUSTRAC’s AML/CTF page contains all relevant information and updates on reforms, including which industries are regulated, public consultation on rules, risks and indicators of suspicious activity, and legislative progress.
AUSTRAC – Money Laundering Australia National Risk Assessment report
AUSTRAC’s National Risk Assessment brings together insights from across Australia’s law enforcement, intelligence and regulatory agencies, private sector stakeholders and international financial intelligence units (FIUs) to assess risks associated with money laundering.
AUSTRAC – Regulatory expectations for the implementation of the AML/CTF reforms
AUSTRAC CEO Brendan Thomas has provided a regulatory expectations statement outlining changes under the AML/CTF reforms, including enrolment with AUSTRAC, having a compliance officer, implementing an AML program, and being prepared to report suspicious activity. AUSTRAC will provide guidance and support during the transition. It provides context on the changes and objectives of the reforms.
Parliament of Australia – AML/CTF Bill – Report (November 2024)
The AML/CTF report, compiled and provided by a non-partisan committee, covers the bill's purpose. It contains eight recommendations to improve the bill’s design and implementation.
AUSTRAC – e-Learning materials
AUSTRAC’s e-learning materials provide accessible education resources for reporting entities to increase their knowledge of AML/CTF compliance. Real estate professionals do not require a login to access e-learning materials.
AUSTRAC – Upcoming educational webinars
AUSTRAC is hosting a series of webinars to help new reporting entities, including real estate professionals, understand and meet their AML/CTF obligations. The sessions cover key topics, including AML/CTF compliance, risk assessments, customer due diligence, reporting requirements, and managing outsourcing arrangements.
AUSTRAC – Obligations Factsheet
Access the full AUSTRAC Obligations Factsheet to learn how the upcoming changes will affect enrolment, customer due diligence, reporting, and record-keeping requirements for your business.
AUSTRAC – Essentials Checklist
Use AUSTRAC’s Essentials Checklist to see how your business will be regulated from 2026 and prepare ahead of enrolment. The checklist provides key steps, resources, and webinars to help you understand your obligations, assess risks, and get ready for compliance.
The new AML/CTF rules were tabled in August 2025, following the two stage public consultation process. The rules come into effect for real estate professionals with other AML/CTF obligations 1 July 2026.