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What real estate agents need for AML/CTF compliance

From 1 July 2026, real estate agents and buyer's agents are AML/CTF reporting entities for brokering property sales. Here's what AUSTRAC actually requires — the trigger, the program, CDD, reporting and records — in plain English.

By Daniel Ebiau, AMLCompliant ·

If you broker property sales, the AML/CTF reforms make you a reporting entity from 1 July 2026. This is the practical checklist of what AUSTRAC actually expects — no jargon, no scare tactics.

The designated service that captures you

For real estate agents and buyer's agents, the designated service is brokering the purchase, sale or transfer of real estate as agent, for compensation. Timing matters:

  • Seller's agent: you start providing the service when an agreement to broker the sale or transfer is signed.
  • Buyer's agent: the service to the buyer begins when it's reasonably expected the transaction will proceed — usually when the offer is accepted and the contract is signed.

AUSTRAC is clear that you must have your AML/CTF program in place before you broker. (Source: AUSTRAC — real estate designated services.) Capture is service-based — see Is my business an AUSTRAC reporting entity? if you're unsure.

Your AML/CTF program

Under the reformed regime there's no more rigid Part A / Part B. Your program needs three things:

  1. An ML/TF risk assessment — identifying the money-laundering, terrorism-financing and proliferation-financing risks your agency reasonably faces (your buyers/sellers, the property types, cash exposure, channels). It must be proportionate to the nature, size and complexity of your business. Step-by-step: How to do an ML/TF risk assessment.
  2. AML/CTF policies — your procedures, systems and controls to manage the risks you identified, including customer due diligence.
  3. A governance framework — including a fit-and-proper AML/CTF compliance officer and oversight by senior management, with the program approved in writing before you provide designated services.

(Source: AUSTRAC — about the reforms.)

Customer due diligence (CDD)

CDD is risk-based and split into initial CDD (identify and verify your customer and any beneficial owners, and identify politically exposed persons before or at onboarding) and ongoing CDD (monitor the relationship and transactions). Enhanced CDD is required for higher-risk situations. (Source: AUSTRAC — customer due diligence reform.)

For real estate, a beneficial owner is generally an individual who ultimately owns 25% or more of, or controls, the customer entity. (Source: AUSTRAC glossary — beneficial owner.)

Reporting and records

  • Suspicious matter reports (SMRs): lodge within 3 business days of forming the suspicion (within 24 hours if it relates to terrorism financing). (Source: AUSTRAC SMRs.)
  • Threshold transaction reports (TTRs): required for cash transfers of A$10,000 or more, lodged within 10 business days. (Source: AUSTRAC TTRs.)
  • Record-keeping: generally 7 years. (Source: AUSTRAC record-keeping overview.)

Enrol with AUSTRAC

Real estate agents enrol — they generally do not need to register (registration is an additional step only for remittance and virtual asset providers). Enrolment is via AUSTRAC Online and the Business Profile Form, and there's no AUSTRAC enrolment fee. Apply to enrol by 29 July 2026. (Sources: AUSTRAC enrol with us; AUSTRAC enrol/register reform.) The full deadline list is in Tranche 2 key dates: 1 July and 1 October 2026.

What it can cost to get it wrong

The maximum civil penalty for a body corporate is 100,000 penalty units (A$33 million at the current $330 penalty-unit value); for an individual it's 20,000 penalty units (A$6.6 million). Dollar figures depend on the penalty-unit value at the date of the contravention and can change at the next indexation. In practice AUSTRAC uses a graduated model — education, infringement notices, enforceable undertakings, remedial directions — before litigation. (Source: AUSTRAC — consequences of not complying.)

General information only, not legal advice. Reflects AUSTRAC guidance and the AML/CTF Act 2006 current to June 2026. Confirm your obligations with AUSTRAC (austrac.gov.au) or a qualified adviser.

Run the free ML/TF risk assessment →

Frequently asked questions

When exactly do I start providing the designated service?
As a seller's agent, when an agreement to broker the sale or transfer is signed. For the buyer, when it's reasonably expected the transaction will proceed — typically when the offer is accepted and the contract is signed. Source — AUSTRAC real estate designated services.
Do property managers and leasing agents get captured?
The designated service is brokering the purchase, sale or transfer of real estate. Pure leasing/property management is generally outside that, and AUSTRAC's exclusions note things like leases of 30 years or less. Check your specific activities with the free risk assessment.
Do I need my program before settlement or before listing?
AUSTRAC says you must have your AML/CTF program in place before you broker a purchase, sale or transfer — so before you start acting, not at settlement.
Daniel Ebiau, AMLCompliant

Daniel Ebiau leads content at AMLCompliant, translating AUSTRAC's AML/CTF reforms into plain-English, source-checked guidance for small Australian businesses. Every regulatory fact published here is verified against AUSTRAC and the Federal Register of Legislation.

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