Real estate AML/CTF obligations in Australia

Why real estate?

Real estate is a known risk channel for money laundering. Criminals routinely purchase property with illicit funds to legitimize their cash, or they hold properties in the names of third parties to disguise their ownership. Under the new Tranche 2 laws, real estate professionals are now considered critical gatekeepers.

Which activities are regulated?

If you act as an agent in the buying or selling of real property, you are providing a designated service. This generally includes commercial property, residential property, and land sales.

When do obligations kick in?

The moment you agree to act for a client to sell or buy a property, or you begin actively representing them, your obligations start. You must conduct Customer Due Diligence (know your customer) on your client before the transaction is finalized.

What do agents have to do?

Real estate agencies must enroll with AUSTRAC, have an active AML/CTF program, formally appoint a compliance officer, verify the identity of the buyer/seller they are representing, and submit suspicious matter reports (SMRs) directly to AUSTRAC if they witness unusual financing behavior.