AML Crackdown in Real Estate: Why Waiting Until 2026 Could Cost You
Industry experts warn of compliance challenges as new anti-money laundering laws approach
Related Coverage
This analysis builds on reporting from the Australian Financial Review's investigation into the upcoming AML/CTF reforms affecting real estate.
Read the original AFR article
Source: Australian Financial Review, June 18, 2025
Following the Australian Financial Review's recent investigation, the reality is becoming clear: Australia's real estate industry is facing one of the most significant compliance overhauls in decades.
The legislation passed in November 2024 extends Australia's AML/CTF regime to include real estate agents, buyer's agents, developers, lawyers and conveyancers. With the July 1, 2026 deadline fast approaching, all covered entities must register with AUSTRAC by March 2026 and implement comprehensive compliance programs covering customer verification, transaction monitoring, and suspicious activity reporting.
Industry Warning
As highlighted in the AFR's coverage, industry leaders are expressing serious concerns about preparedness levels across the sector, particularly among independent agencies.
"My biggest concern is that agents won't take it seriously until it's due in July."
The Scale of the Challenge
AUSTRAC's enforcement track record speaks for itself. The AFP has already seized over $790 million in property-related criminal assets, demonstrating that money laundering through real estate is not a theoretical risk—it's an active enforcement priority.
The challenge is particularly acute for independent agencies and smaller operators who lack the internal compliance infrastructure of larger franchise networks. While major players are quietly building their compliance frameworks, thousands of smaller businesses remain unprepared.
The Cost of Inaction
Industry analysis suggests compliance could add significant costs per transaction. According to PEXA, estimates point to around $1,200 per transaction in additional compliance overhead—and that's assuming efficient systems are in place.
Timeline Reality Check
With AUSTRAC guidelines not expected until December 2025, and the traditional holiday slowdown, many agencies won't focus on implementation until February 2026—leaving just five months before the deadline.
Our Solution: Bridging the Gap
At AML RealEstate Solutions, we've developed our platform specifically to address the challenges highlighted in the AFR's reporting. We understand that most real estate professionals don't have compliance teams or legal departments to lean on.
What we provide:
- • AUSTRAC-aligned KYC verification with government-approved ID checks
- • Real-time PEP and sanctions screening to identify high-risk clients
- • Guided SMR reporting with built-in compliance logic
- • Secure 7-year recordkeeping in an audit-ready dashboard
- • Pre-built AML/CTF programs tailored specifically for real estate
No legal team required. No compliance officer needed. Just straightforward, effective compliance tools designed for real estate professionals.
"It's going to come straight off the bottom line at a time when margins are being pushed."
The Advantage of Early Action
The agencies that act now—before the industry-wide scramble begins—will have several key advantages:
- • Time to properly implement and test systems
- • Competitive advantage through streamlined processes
- • Reduced last-minute implementation costs
- • Enhanced client confidence through demonstrated compliance
- • Protection from regulatory penalties and reputational damage
As the AFR's investigation makes clear, this isn't a problem that will solve itself. The time for preparation is now.
Don't Wait Until 2026
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