The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 expanded the AML/CTF Act to cover "Tranche 2" entities. Real estate agents are among the newly regulated businesses, with obligations applying from 1 July 2026.
Why is Real Estate targeted?
Real estate is a known vehicle for money laundering globally. Criminals use illicit funds to purchase high-value assets, effectively "cleaning" the money. By regulating real estate agents, AUSTRAC aims to close a significant loophole in the Australian financial system. Source: AUSTRAC Guidance
What is required of Real Estate Agents?
Under the reforms, real estate professionals are now reporting entities, like banks and other financial institutions. Key obligations include:
- Enrolling with AUSTRAC: You must apply to enrol your business through AUSTRAC Online within 28 days of starting to provide a designated service.
- Adopting an AML/CTF Program: Developing and maintaining a written program detailing how your agency identifies, mitigates, and manages ML/TF risks.
- Customer Due Diligence (CDD): Verifying the identity of your clients (both buyers and sellers) before providing services. This is commonly known as KYC (Know Your Customer).
- Ongoing Monitoring: Continuously checking your clients against PEP (Politically Exposed Persons) and Sanctions lists.
- Reporting: Submitting Suspicious Matter Reports (SMRs) to AUSTRAC if you suspect a transaction involves illicit funds.
How ClearAML Helps
ClearAML is purpose-built to help Tranche 2 entities like Real Estate agencies transition into compliance effortlessly. Our single-platform solution handles identity verification, global watchlist screening, and risk assessments in seconds, not hours.