AML/CTF: Immediate action required for the real estate & property sector

Significant changes to Australia’s AML/CTF regime will directly impact the real estate and property sector from 1 July 2026. While these reforms have been building for some time, recent enforcement activity highlights the consequences of getting it wrong.

What this means for you

If your business is involved in property transactions or related advisory services, you may now fall within scope of the AML/CTF regime under the Tranche 2 reforms — whether you’re a real estate agency, property developer, advisory firm, or providing transaction support.

Services most likely to be captured include:

• brokering, facilitating, or advising on the sale, purchase, or transfer of real estate
• supporting ownership structuring or restructuring for property holdings
• acting in arrangements involving companies, trusts, or nominee structures
• providing registered office or business addresses linked to property entities.

Importantly, the rules apply based on the nature of the service, not just your job title or firm type.

Why this matters

Regulators view property transactions as high-risk for money laundering, particularly where complex ownership structures or large capital flows are involved.

Recent enforcement action against non-compliant entities (outside real estate) underscores AUSTRAC’s willingness to apply significant penalties:

• up to $6.6 million for individuals
• up to $33 million for companies

Key dates to act on:

• 31 March – 29 July 2026: Enrol with AUSTRAC
• By 1 July 2026: AML/CTF program must be in place
• From 1 July 2026 onward: Ongoing compliance obligations apply

What you need to do now

Real estate and property businesses should act immediately to:

• assess whether your services are ‘designated services’
• register with AUSTRAC within the required timeframe
• develop and implement an AML/CTF program, including:
  • customer due diligence (CDD)
  • risk assessment
  • transaction monitoring and reporting
  • record keeping and governance controls
• assign clear internal responsibility for AML/CTF compliance.

Impact on your clients

You should expect increased friction in transactions:

• clients will need to provide identity verification and ownership details
• in some cases, source of funds / source of wealth information
• delays or disengagement may occur if information is not provided promptly.

This is particularly relevant for:

• high-value property transactions
• foreign investment or cross-border structures
• trust and corporate ownership arrangements.

Bottom line

This is a fundamental shift for the property sector. Many businesses that have never been regulated under AML/CTF will now face formal compliance obligations.

Early preparation will be critical — both to avoid penalties and to minimise disruption to transactions and client relationships.

How SW can help

Our AML/CTF specialists can help you understand how the Tranche 2 reforms apply to your business and develop a practical, risk-based compliance framework. We can assist with assessing whether your services are captured, preparing and implementing AML/CTF programs, conducting risk assessments, establishing customer due diligence and reporting processes, and supporting AUSTRAC enrolment requirements.

To discuss your obligations and readiness for the 1 July 2026 commencement, reach out to our AML/CTF experts.

Contributors

Lawrence Lau | Associate Director, Business and Private Client Advisory