On 1 July 2026, significant amendments to Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime came into effect, expanding the operation of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) to a number of previously unregulated industries, including participants in the real estate sector.
The reforms, introduced by the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth), represent one of the most substantial changes to Australia’s financial crime framework since the commencement of the AML/CTF regime in 2006. The amendments are intended to strengthen Australia’s ability to detect, deter and disrupt money laundering, terrorism financing and other serious financial crimes by extending regulatory obligations to industries that have historically fallen outside the scope of the legislation.
The property sector has long been recognised as presenting opportunities for the laundering of illicit funds due to the significant value of real estate transactions and the potential use of complex ownership structures. The reforms seek to address these risks by bringing certain designated services provided by real estate professionals within the scope of the AML/CTF regime.
As a consequence of these amendments, businesses that provide designated services are now required to comply with a range of statutory obligations before providing those services. These obligations include undertaking customer due diligence, verifying the identity of customers and, where applicable, beneficial owners, obtaining sufficient information to understand the nature and purpose of the business relationship, maintaining prescribed records and reporting suspicious matters to the Australian Transaction Reports and Analysis Centre (AUSTRAC). Reporting entities are also required to establish and maintain an AML/CTF compliance program that is appropriate to the size, nature and complexity of their business.
The reforms will have practical implications for parties involved in property transactions. Purchasers, vendors, developers, investors and entities acquiring or disposing of real property should expect increased requests for identification documents and information concerning ownership structures. Where transactions involve companies, trusts or self-managed superannuation funds, additional documentation may be required to enable reporting entities to identify beneficial owners and satisfy their statutory due diligence obligations. Depending on the circumstances, reporting entities may also be required to make reasonable enquiries regarding the source of funds or source of wealth associated with a transaction.
Importantly, these obligations are imposed by legislation and are not discretionary requirements adopted by individual agencies or advisers. Reporting entities that fail to comply with their obligations under the AML/CTF Act may be subject to regulatory action by AUSTRAC, including the imposition of significant civil penalties and other enforcement measures.
While many participants in the property industry will already undertake aspects of client identification as part of their existing business practices, the reforms establish a comprehensive statutory framework that regulates customer due diligence and ongoing compliance requirements across the sector. Clients should therefore anticipate that additional information may be requested before property transactions can proceed and that transaction timelines may be affected where further verification is required.
The commencement of these reforms reflects the Australian Government’s continued efforts to strengthen the integrity of Australia’s financial system and align the nation’s AML/CTF framework with evolving international standards. Businesses operating within the property sector should ensure that they understand the scope of the new obligations and have implemented appropriate compliance measures to satisfy the requirements of the amended legislation.
If you require assistance understanding your legal obligations given the changes to the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth), do not hesitate to contact us.
Yours faithfully,