The Australian government has implemented sweeping changes to anti-money laundering and counter-terrorism financing (AML/CTF) laws, effective July 1, 2026. These reforms extend obligations beyond banks and casinos to include real estate agents, conveyancers, lawyers, accountants, and dealers in gems and precious metals. The goal is to close loopholes exploited by criminals, with financial crime costing Australians up to A$82 billion per year.
Why the Changes Are Needed
Billions of dollars in illicit funds are generated annually from drug trafficking, tax evasion, human trafficking, cybercrimes, arms trafficking, and corruption. Criminals launder proceeds to avoid prosecution. Real estate agents are particularly vulnerable as they serve a broad client base that may include money launderers or terrorist financiers. The new laws aim to shut down these avenues and align Australia with international standards set by the Financial Action Task Force (FATF).
Expanded Powers for AUSTRAC
The Australian Transaction Reports and Analysis Centre (AUSTRAC) now oversees a wider range of entities. Real estate professionals must enrol with AUSTRAC, develop an AML/CTF compliance program, identify and report suspicious activities, train staff, and appoint a compliance officer. Accountants and other professionals face new obligations when managing client money or bank accounts.
Buyers Face New Scrutiny
According to AUSTRAC, laundering illicit funds through real estate is an established practice in Australia, requiring little planning. Large sums can be concealed via complex loans, trusts, companies, or cash payments. Buyers will now face more questions and must provide additional identification and disclosures. Sale agreements may include clauses confirming compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. Real estate investors should not be alarmed but should expect more due diligence from agents and conveyancers, who face severe penalties for non-compliance.
