AML/CTF Reform: What is it?
The regulatory environment for Australian real estate agents is evolving. Soon, Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) obligations will extend to the real estate sector, bringing new responsibilities for you and your business.
In line with international standards, the Australian government is implementing reforms to the AML/CTF Act 2006. These changes, overseen by AUSTRAC, will require real estate agents to play a more active role in preventing money laundering and terrorism financing through property transactions.
The updated AML/CTF framework is designed to better prevent, detect and disrupt money laundering and terrorism financing.
Key impacts for your real estate agency
Enrolling with AUSTRAC
Your agency will need to register with AUSTRAC by 31 March 2026.
Developing an AML/CTF Program:
You’ll need to create and maintain a program to identify, assess, and mitigate money laundering and terrorism financing risks relevant to your business. This needs to be documented and regularly updated.
Conducting Customer Due Diligence
- This involves verifying the identity of your clients, understanding the nature and purpose of your business relationship with them. This also includes checking for politically exposed persons and individuals on sanction lists. Due diligence needs to be an ongoing process. If you notice changes to a client’s circumstances or risk profile, this could trigger the need for reporting or re-verification.
Reporting and Record Keeping
You may be required to report certain transactions, such as threshold transactions and suspicious matters, to AUSTRAC. You’ll also need to keep detailed records of your customer due diligence and transactions for a specified period.
Business Roles and Training
Someone within your organization will need to be appointed as a compliance officer and registered with AUSTRAC. This person is responsible for overseeing your AML/CTF compliance. Everyone who works at your business must also undertake AML/CTF training.
Get the latest AML/CTF news and updates
Don’t wait until the last minute. Stay informed about the latest guidance and details about the AML/CTF reforms for you and the industry.
Preparing early will ensure a smooth transition and prevent any disruption to your business. By understanding your obligations now, you can proactively implement the necessary processes and training.
PEXA is sharing this information to help spread the awareness of these big changes facing the conveyancing industry and it should be treated as informational.
We encourage you to visit the AUSTRAC website to find out more about your obligations.
PEXA evaluating ways to help
The Federal Government has included in the legislation provisions to allow Australia’s critical national infrastructure to be leveraged to support the new laws. PEXA recognises that the anti-money laundering and counter terrorism financing regime is important in safeguarding the integrity of our financial system.
With collaboration and guidance from industry bodies and AUSTRAC, we intend to determine the best way to leverage the PEXA Exchange to support our customers.
More information will be shared over the coming months.
The latest from PEXA Unlocked Blog
Stay informed and explore our blogs for the latest AML/CTF updates and industry news.
