Why Real Estate? Why Now?
Australia has been, until now, one of the last developed economies not to regulate real estate professionals under its AML/CTF framework. The Financial Action Task Force (FATF) — the global financial crime watchdog — has repeatedly flagged this gap. Criminal networks know it, too.
The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 closes it. The logic is straightforward: real estate transactions are large, often complex, and frequently involve third-party payments, foreign buyers, and layered ownership structures — precisely the characteristics that money launderers seek. By the time dirty money has been used to purchase a Sydney apartment or a Melbourne terrace, it has been effectively laundered. It is now clean capital.
Who Must Comply?
The scope of the new regime is broader than many in the industry appreciate. You are caught if your business provides one or more designated services with a geographical link to Australia.
Real Estate Agents and Seller's Agents
Brokering the sale of residential or commercial property on behalf of a seller or buyer, in the course of carrying on a business. Both vendor and purchaser are customers for AML/CTF purposes.
Buyer's Agents and Buyer's Advocates
Acting as an intermediary to find or identify property on behalf of a purchaser. The obligation begins the moment a buyer engagement agreement is signed.
Property Developers
Selling house-and-land packages, apartments off-the-plan, or land in new subdivisions — including where developers use their own in-house sales teams rather than external agencies.
If you are unsure whether you are in scope, the answer is almost certainly yes. AUSTRAC has confirmed the standard test is straightforward — if you negotiate on behalf of a party, seek buyers or sellers for a fee or commission, and carry on a business doing so, you are a reporting entity from 1 July 2026.
Your Six Core Obligations
1. Enrol with AUSTRAC
Enrolment as a reporting entity opened on 31 March 2026. The final enrolment deadline is 29 July 2026 — but obligations commence on 1 July regardless of whether enrolment is complete. Failure to enrol attracts criminal penalties.
2. Establish an AML/CTF Program
Every reporting entity must develop and maintain a written AML/CTF program before it provides a designated service. The program must contain two components: a risk assessment identifying your ML/TF risks having regard to your customers, services, transaction types, and business channels; and AML/CTF policies — documented procedures, systems and controls designed to manage and mitigate those risks.
The program must be tailored to your business. AUSTRAC has published a starter kit for small agencies, but larger and more complex agencies cannot rely on it.
3. Customer Due Diligence (KYC/CDD)
You must collect and verify prescribed know-your-customer information before providing a designated service — or, in the case of auctions, as soon as practicable after the fall of the hammer. This includes verifying identity of individual customers, verifying corporate or trust customers including beneficial owners, conducting Enhanced Customer Due Diligence (ECDD) for high-risk customers, and ongoing monitoring throughout the relationship.
4. Sanctions and PEP Screening
Before transacting with any customer, you must screen against Australian and international sanctions lists and identify whether a customer is a Politically Exposed Person. PEP status and sanctions exposure require enhanced diligence and, in some cases, prohibition on proceeding.
5. Suspicious Matter Reporting (SMR)
Where a transaction gives rise to suspicion — unusual payment sources, reluctance to provide identification, price inconsistent with market value, third-party funders with no apparent connection to the buyer — you must lodge a Suspicious Matter Report with AUSTRAC. The obligation to report arises regardless of whether the transaction proceeds.
6. Record Keeping
All AML/CTF records — customer due diligence files, transaction records, staff training logs, program documentation, and SMR records — must be retained for seven years.
The Scale of the Problem
Most real estate agencies have never operated as reporting entities. The obligations described above represent a compliance infrastructure that the sector has simply never needed to build. The window is closing. Many agencies have done nothing.
The penalties for non-compliance are not administrative inconveniences. Failure to enrol attracts criminal liability. Failure to maintain an adequate AML/CTF program, failure to report suspicious matters, and failure to conduct required customer due diligence are all serious contraventions. AUSTRAC has broad investigative and enforcement powers — and a track record of using them.
How Proximo Comply Solves This
Proximo Comply is Proximo AI's purpose-built compliance platform for Australia's newly regulated Tranche 2 professionals — designed specifically for businesses entering the AML/CTF regime for the first time, with no compliance infrastructure, no dedicated compliance team, and no time to waste.
Guided AML/CTF Program Builder
Proximo Comply walks your agency through construction of a complete, compliant AML/CTF program — risk assessment and policies — tailored to your business profile. It generates and maintains your program documentation, flags gaps, and updates your program as AUSTRAC guidance evolves.
Digital KYC and CDD Workflows
Customer due diligence is embedded into your transaction workflow. Proximo Comply prompts the collection and verification of required identity documents at the right point in the transaction. For high-risk customers, the platform automatically triggers enhanced due diligence protocols.
Real-Time Sanctions and PEP Screening
Every customer is screened automatically against current Australian and international sanctions lists and global PEP databases. Screening results are logged. Alerts are generated. Your file is clean.
Suspicious Matter Reporting Assistance
Proximo Comply surfaces red-flag indicators and supports the drafting and lodgement of Suspicious Matter Reports directly to AUSTRAC.
Seven-Year Compliant Record Archive
Every action, every document, every verification, every training record is stored securely in a seven-year compliant audit trail. Regulator-ready, at any time.
Staff Training Module
Scenario-based modules built around property transaction red flags — not generic compliance e-learning. Training is tracked and stored.
Key Dates
| Date | What Happens |
|---|---|
| 31 March 2026 | AUSTRAC enrolment opens for Tranche 2 entities |
| 1 July 2026 | AML/CTF obligations commence — all programs must be operational |
| 29 July 2026 | Final enrolment deadline (obligations apply from 1 July regardless) |
| 1 July 2027 | First annual AML/CTF program review due |
Frequently Asked Questions
Do I need to comply if I only manage rentals?
Rental management — leasing residential property on behalf of a landlord — is not a designated service under the current regime. The obligations apply to brokering the sale, purchase, or transfer of real estate. If your agency only manages leasing, you are not currently caught. If you also handle sales, you are.
I'm a small agency with fewer than five staff. Does this still apply?
Yes. There is no minimum size threshold. Any business that provides a designated service with a geographical link to Australia must comply. AUSTRAC's starter kit is available for small agencies with simple risk profiles, but your obligations under the Act are unchanged.
Does this apply to auctions?
Yes. When real estate is sold at auction, the buyer may only be identified after the fall of the hammer. AUSTRAC permits a brief deferral of initial CDD in this circumstance — but the verification must be completed as soon as practicable, and the service obligation begins at the point the offer is accepted.
What if a customer refuses to provide identification?
You cannot provide the designated service. If a customer declines to complete KYC, you must decline to act. Depending on the circumstances, the refusal itself may be a red flag warranting a Suspicious Matter Report.