AML/CTF Reforms Are Coming to Property. What You Need to Know Now

From 1 July 2026, nearly every participant in Australia's property market will be required to meet new AML/CTF compliance obligations under the expanded Tranche 2 reforms.

Real estate professionals, including agents, buyer's advocates, developers, lawyers, and conveyancers, will now be responsible for verifying the identity of buyers and sellers, assessing risk, and reporting suspicious transactions to AUSTRAC, Australia's financial intelligence regulator.

These obligations are not just technical. They are part of a broader national strategy to disrupt money laundering through real estate, an activity that AUSTRAC says is:

"Relatively uncomplicated, requiring little planning or expertise. Large sums of illicit funds can be concealed and integrated into the legitimate economy through real estate."

The scale of risk is heightened in cross-border transactions, especially when the buyer is based in a high-risk jurisdiction or when property purchases exceed fair market value or appear to serve no residential or commercial purpose.

While these reforms are necessary to protect the integrity of the financial system, they also pose practical challenges, especially for small and regional real estate businesses.

"The ones I'm concerned about are the independents who don't have somebody to lean on."

Many agents are waiting for AUSTRAC's official guidelines, which are not expected until December. That leaves just six months before enforcement begins, during a traditionally slow January period.

"We know what real estate is like in December and January. It's going to be February before people focus on getting the template done."

What will be required?

• • Customer due diligence (KYC) on all parties
• • Ongoing monitoring for unusual or high-risk behaviour
• • Reporting of suspicious activity to AUSTRAC
• • Appointing a Compliance Officer (internal or dual-role)
• • Maintaining records for at least 7 years

The solution

At AML RealEstate Solutions, we've developed a purpose-built platform to help real estate professionals meet these obligations without needing a legal team or IT department.

We offer fixed-price setup plans and ongoing support tailored for Australian property professionals.

If you're unsure where to begin, now is the time to take the first step. Businesses that act early will avoid penalties, delays, and last-minute compliance stress.