Australian real estate agents have spent years on the FATF “high risk, no oversight” list. That ends on 1 July 2026, when the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 brings agents into AUSTRAC’s regulatory net as a Tranche 2 sector.
If you act for a vendor, buyer, lessor or lessee on a real-property transaction, you are providing a “designated service”. That triggers an AML/CTF program, customer due diligence, suspicious matter reporting, and a ream of new disclosure obligations in your client agreements.
Who is caught
- Sales agents acting for vendors
- Buyer’s agents and acquisition advisers
- Property managers handling sales (leasing-only is largely outside the net at commencement)
- Auctioneers conducting real-property auctions
- Project marketers and off-the-plan sales operators
What an AML/CTF program means
A documented program with Part A (risk assessment, governance, training, oversight) and Part B (customer due diligence — every client, every transaction).
- Verify the identity and beneficial ownership of every vendor and buyer you act for
- Risk-rate each transaction (foreign buyers, cash sales, unusual structures, PEPs)
- Lodge suspicious matter reports with AUSTRAC within 24 hours
- Threshold transaction reports for any $10,000+ cash equivalents
- Maintain ID, transaction and risk-assessment records for seven years
- Submit an annual compliance report
What is new vs Tranche 1
Tranche 1 (banks, money remitters, casinos) has carried these obligations since 2006. Tranche 2 closes the FATF gap by adding “gatekeeper” professions whose work is structurally exposed to laundering — and real-estate agents have been the single most-cited gap for fifteen years.
What contracts and documents need updating
- Listing authorities and buyer’s-agent appointments — must disclose AML/CTF checks, ID requirements, refusal rights, and data-storage practices
- Sale contracts and deposit handling — clauses dealing with funds where source cannot be verified
- Trust account terms — handling and reporting protocols
- Privacy collection notices — sensitive ID and source-of-funds data
- Subcontractor and conjunctional-agent agreements — flow-down of AML obligations
The deadlines and penalties
Commencement 1 July 2026, phased uplift, AUSTRAC enrolment first. Civil penalties up to $22 million per contravention for body corporates; significant personal liability for directors and licensees.
How an updated Service Agreement helps
Claim Done’s Service Agreement generates a Tranche 2-ready listing or buyer’s-agent appointment in about ten minutes. It carries the AML/CTF disclosures, ID-verification consent, source-of-funds clauses, refusal/delay rights, and the record-keeping language AUSTRAC will audit against. Flat $79 in DOCX and PDF.
Next step
Enrol with AUSTRAC, draft Part A, re-paper your appointments and CRM templates, and train your sales team this financial year.