Real Estate Agencies Against Financial Crime

Real estate has long been recognised as a vulnerable sector for money laundering due to its high transaction values and potential for complex ownership structures.

From July 1, 2026, under Australia’s reformed anti-money laundering and counter-terrorism financing (AML/CTF) framework, real estate agents will be required to play a vital role in identifying and reporting suspicious activity.

Australian property professionals working in residential, commercial, industrial and agricultural sectors will be brought into the regime as ‘reporting entities’ under the expanded regime, with obligations for newly regulated sectors commencing on that date.

“The new obligations are an important step in aligning our industry with international standards,” Reapit General Manager Australia and New Zealand Simon Berglund said.

“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.

“The government is formally making the real estate sector play a more active role in preventing financial crime.”

What the new regime means for agencies

Real estate agents will be required to:

• Conduct customer due diligence on buyers and sellers (including beneficial owners).
• When appropriate, submit suspicious matter reports to AUSTRAC.
• Maintain comprehensive records for at least seven years.
• Appoint an AML/CTF Compliance Officer.
• Provide ongoing staff training.

The inclusion of real estate agencies in the AML/CTF regime closes gaps previously exploited by criminals, seeing responsibility expanded from banks to include property professionals.

The cost of non-compliance

Failure to meet AML/CTF obligations can result in significant penalties, including civil penalties, enforceable undertakings and reputational damage. AUSTRAC’s enforcement actions are public, and non-compliance can directly impact brand trust and customer relationships.