NEW ANTI-MONEY LAUNDERING OBLIGATIONS FOR AGENTS & BUILDING DEVELOPERS

Who Needs to Meet AML Compliance for Real Estate?

COMMENCING 1 JULY 2026

From 1 July 2026, AML compliance for real estate agents and property developers will become mandatory under AUSTRAC regulations. If your business provides a designated service, you must comply with anti-money laundering and counter-terrorism financing laws.

Anti-Money Laundering & Counter-Terrorism Financing

AUSTRAC is the Australian regulator responsible for monitoring compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) laws. The agency regulates specified services, known as designated services, to prevent criminal abuse of the financial system and to protect the community from serious and organised crime. This includes child exploitation, drug and human trafficking, scams, fraud, terrorism, and the proliferation of weapons of mass destruction.

AUSTRAC has traditionally overseen businesses involved in financial services, gambling (such as casinos and poker machines), and gold bullion trading. However, reforms introduced by the Australian Government have broadened the scope of regulated sectors.

From 1 July 2026, AUSTRAC’s regulatory coverage will extend to real estate agents and property developers. Businesses that fall within these categories must meet all compliance obligations by this date.

Do You Provide a “Designated Service”?

Your business may be considered to provide a designated service if you engage in any of the following activities:

1. Brokering the sale, purchase, or transfer of real estate (including leases over 30 years) on behalf of another person or entity

2. Selling or transferring real estate (including leases over 30 years) without engaging an independent real estate agent

3. Assisting in planning or executing a transaction involving the sale, purchase, or transfer of real estate (including leases over 30 years) for another person or entity

If your business offers any of these services, AUSTRAC will likely consider you to be providing a designated service under the Anti-Money Laundering and Counter-Terrorism Financing framework.

So, What Does This Mean for Your Business?

If your business provides a designated service, you will have new obligations under AUSTRAC’s regulatory framework. These include:

1. Enrolling with AUSTRAC as a reporting entity

2. Developing and maintaining an Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) program

3. Conducting customer due diligence (Know Your Customer or KYC procedures)

4. Monitoring and reporting specific transactions and customer activities. This includes:

5. Keeping comprehensive records of all AML/CTF compliance activities listed above

Meeting these obligations is essential to avoid regulatory penalties and to support Australia’s efforts to combat serious and organised crime.

What Happens If You Don’t Comply?

Failure to meet your AML/CTF obligations can result in significant consequences. Depending on the nature and severity of non-compliance, AUSTRAC may impose:

1. Civil Penalties: Up to A$31,310,000 for a company and up to A$6,260,000 for an individual;

2. Infringement Notices: Issued for breaches that do not require court proceedings;

3. Remedial Directions: Formal instructions to fix compliance failures within a set timeframe;

4. Enforceable Undertakings: Legally binding agreements requiring specific actions to rectify non-compliance.

Ensuring your business is fully compliant not only avoids these penalties but also strengthens your reputation and resilience against financial crime.

Think DIY is Cheaper? Think Again.

AML/CTF compliance isn’t just box-ticking. Missteps can mean heavy fines, audit stress, and reputational risk. Some businesses presume compliance is basic or only applies to high-risk sectors, but AUSTRAC requires all captured entities to meet the same obligations regardless of size or industry. Many businesses get caught out by assuming it’s simple or that regulators won’t notice.

Expert guidance saves time, ensures accuracy, and protects your business from costly mistakes.

How Madison Marcus Can Support You

Navigating AML/CTF compliance can be complex, but you don’t have to do it alone. Our experienced Financial Services & Compliance team can assist with:

1. Providing tailored advice on your Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) obligations.

2. Enrolling your business with AUSTRAC as a reporting entity.

3. Developing or reviewing your AML/CTF Program to meet legislative requirements.

4. Helping you appoint an AML Compliance Officer with the right capability and authority.

5. Preparing and lodging reports to AUSTRAC, including Threshold Transaction Reports (TTRs) and Suspicious Matter Reports (SMRs).

6. Delivering staff training to ensure internal awareness and compliance.

We’re here to help you stay compliant, avoid penalties, and protect your business from financial crime risks.

Madison Marcus simplifies compliance, so you can get on with business.

MEMBER OF ACAMS | ASSOCIATION OF CERTIFIED ANTI-MONEY LAUNDERING SPECIALISTS

Madison Marcus is proud to be a member of the Association of Certified Anti-Money Laundering Specialists (ACAMS). Our membership underscores our commitment to maintaining the highest standards in anti-money laundering compliance and financial crime prevention. Being part of ACAMS allows us to stay at the forefront of industry developments, ensuring our clients benefit from the latest insights, best practices, and regulatory guidance in the fight against financial crime.

This article is provided for general informational purposes only and does not constitute legal advice. While every effort is made to ensure the accuracy of the information provided, Madison Marcus Law Firm makes no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the content. Readers are advised to seek professional legal advice tailored to their specific circumstances before taking any action based on this information. Madison Marcus Law Firm accepts no liability for any loss or damage incurred as a result of reliance on the information presented herein.