The Australian Government has introduced landmark Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms that will significantly impact real estate professionals. These reforms, overseen by AUSTRAC, extend the existing AML/CTF regime to so-called “Tranche 2” entities, which include real estate agents, buyer’s agents, property developers, conveyancers, lawyers, accountants, and business brokers. From 1 July 2026, these groups will be subject to the same compliance requirements as financial institutions and casinos, bringing the property sector firmly into line with international standards.

For agents, the most immediate change will be the requirement to register with AUSTRAC. Registration opens from 31 March 2026, and it will be compulsory for all practising licensees to enrol prior to the commencement date. Once registered, agencies must implement a comprehensive compliance program tailored to their operations. This includes appointing an AML/CTF Compliance Officer, conducting a detailed risk assessment of the agency’s exposure to money laundering and terrorism financing, and ensuring that staff receive ongoing training in identifying suspicious activity.

Customer Due Diligence (CDD), often referred to as “Know Your Customer” (KYC), will become a mandatory part of client onboarding. Agents will need to verify the identity of all buyers and vendors, understand the source of funds being used in property transactions, and carry out ongoing monitoring where risks are identified. Detailed records must be kept for a minimum of seven years, and agencies will be expected to have systems in place to detect and report suspicious activity to AUSTRAC in a timely manner.

Failure to comply will carry significant consequences. Under the new framework, penalties can be as high as $31 million for companies and $6 million for individuals, in addition to infringement notices and enforceable undertakings. Beyond the financial risks, agents face reputational damage if found to be non-compliant, particularly in a market where consumer trust is central to business success.

The push for these reforms comes after AUSTRAC identified the real estate sector as highly vulnerable to money laundering, with property transactions often involving large sums of money and limited scrutiny compared to the financial services sector. By addressing these gaps, Australia aims to protect both its property market and its international standing in combating financial crime.

While these reforms will undoubtedly increase compliance obligations, they also present an opportunity for proactive agents to position themselves as trusted professionals. By embedding robust compliance processes and embracing transparency, agencies can strengthen client relationships and gain a competitive advantage in an environment where consumers are increasingly seeking ethical and accountable service providers.

What you should do now is begin preparing for these changes well ahead of the July 2026 start date. Agencies are encouraged to review their internal systems, consider early staff training, and engage with compliance specialists to design a tailored AML/CTF program. The industry has a unique chance to turn compliance into a value-add — demonstrating professionalism not only to regulators but also to vendors, buyers, and the community.