Do Real Estate Agents Need an AML Program? What You Must Know Before July 2026

If you run or work in a real estate agency in Australia, you are about to become a reporting entity under AUSTRAC's AML/CTF regime. From 1 July 2026, agencies that broker the purchase, sale, or transfer of real estate must have a documented AML/CTF program in place. Not optional. Not "best practice." Required by law.

Enrolment with AUSTRAC opened on 31 March 2026. Obligations take effect on 1 July. That gives you roughly 90 days to go from zero to compliant. If your agency does not have a program in place on day one, you are already non-compliant.

This article explains what the obligations actually look like for a real estate agency, what you need to have ready, and where to start.

Why Real Estate Is Now Regulated Under AML/CTF Laws

Australia's Anti-Money Laundering and Counter-Terrorism Financing Act 2006 has regulated banks, casinos, and remittance providers since it was introduced. Real estate agents, accountants, and lawyers were always on the list for "Tranche 2" expansion, but the legislation took nearly two decades to arrive.

The reason is straightforward. Property is one of the most common vehicles for laundering criminal proceeds in Australia. It holds value, generates rental income, and transactions are large enough to absorb significant sums. AUSTRAC's guidance makes this point directly: real estate is commonly used for money laundering in Australia because property is valuable, tends to increase in value over time, and can generate income through rent or resale.

The AML/CTF Amendment Act 2024 finally extended obligations to real estate professionals, along with accountants, lawyers, conveyancers, trust and company service providers, and dealers in precious metals and stones. AUSTRAC estimates approximately 90,000 new reporting entities will come into scope under Tranche 2.

Which Real Estate Services Are Captured?

The legislation uses the term "designated service" to define what triggers AML/CTF obligations. For real estate, the designated service is brokering the purchase, sale, or transfer of real estate.

In practical terms, this means:

Listing agents and selling agents are captured when they act as intermediaries in property transactions. Buyers agents are captured when they broker purchases on behalf of clients. Property developers may be captured where they sell directly. Agencies that handle customer funds related to real estate transactions are also in scope.

If your agency does any of these things, you have AML/CTF obligations from 1 July 2026.

One thing to watch: if your agency also assists in the execution of a transaction to sell, buy, or transfer a body corporate or legal arrangement, that is a separate designated service with additional requirements. The AUSTRAC starter kit for real estate does not cover this scenario, so you would need a tailored program.

What You Actually Need to Have in Place

The obligations break down into several components, and they all need to be operational before you provide your first designated service on or after 1 July.

Enrolment and registration. You must enrol with AUSTRAC. Enrolment opened 31 March 2026. You need to provide details about your business structure, the services you provide, and your key personnel. Criminal penalties apply for non-compliance with enrolment requirements.

An AML/CTF program. This is the centrepiece. Your program must include a risk assessment that identifies your agency's specific money laundering and terrorism financing risks, plus documented policies, procedures, systems, and controls to manage those risks. The program must be approved by a senior manager of your business.

A governance framework. Your program must clearly identify three roles: a governing body (responsible for governance and executive decisions), a senior manager (approves key compliance decisions), and an AML/CTF compliance officer (manages day-to-day compliance). In smaller agencies, one person can hold multiple roles. For most real estate agencies, the licensee-in-charge will typically be the AML/CTF compliance officer.

Customer due diligence (CDD). You must verify the identity of your customers before or during the provision of a designated service. This means collecting and verifying identification documents for buyers and sellers. The requirements are more involved for customers who are companies, trusts, or SMSFs, where you need to identify beneficial owners.

Suspicious matter reporting. If you form a suspicion that a transaction may be related to money laundering or terrorism financing, you must report it to AUSTRAC. There are timeframes for reporting, and the obligation applies regardless of whether the transaction proceeds.

Record keeping. You must retain records related to your AML/CTF obligations for seven years. This includes CDD records, transaction records, and your compliance documentation.

Staff training. Everyone in your agency who performs AML/CTF functions needs to understand your obligations and how to follow your policies and procedures. This is not a one-off exercise. Training needs to be ongoing.

Annual compliance report. Each year, you must submit a compliance report to AUSTRAC about how you complied with your obligations in the previous year.

The AUSTRAC Starter Kit: Is It Enough?

AUSTRAC has released a program starter kit specifically for small real estate agencies. It is free, and it is designed to be a practical starting point. But it is not a one-size-fits-all solution.

The starter kit was designed for agencies that meet all of the following criteria: you only provide one designated service (brokering the purchase, sale, or transfer of real estate), you have 15 or fewer personnel, you mostly deal with individual Australian-resident customers, you do not regularly deal with high-risk customers, you do not broker overseas property, you only handle customer funds directly related to real estate transactions, and you do not provide fully remote self-service options.

If your agency fits all of those criteria, the starter kit is a reasonable starting point. You will still need to customise it to your specific operations, but the structure is there.

If your agency does not fit those criteria, AUSTRAC's own guidance says you cannot rely on the starter kit to meet regulatory expectations. Larger agencies, agencies that deal with complex ownership structures (trusts, companies, foreign entities), agencies that handle high-value or cross-border transactions, or agencies providing multiple designated services will need a tailored program built for their specific risk profile.

Even if you do qualify for the starter kit, it is worth understanding what it does not include. It does not provide legal advice on edge cases. It does not cover additional designated services like assisting with body corporate transactions. It does not include a ready-made CDD workflow or technology platform. And it does not give you someone to call when a genuinely suspicious transaction lands on your desk.

What "Good" Actually Looks Like on Day One

Compliance does not mean printing a document and filing it. On 1 July 2026, your agency should be able to demonstrate the following:

You have enrolled with AUSTRAC. Your AML/CTF program is documented, approved by a senior manager, and tailored to your agency's risk profile. Your CDD procedures are operational, meaning your agents know what documents to collect, how to verify them, and what to do with higher-risk customers. Your staff have been trained and can explain what a suspicious matter looks like. Your record-keeping systems are set up to retain documents for seven years. And your governance framework is clear, with named individuals in the compliance officer, senior manager, and governing body roles.

If you can tick all of those, you are in a defensible position. If you cannot, you have work to do.

Where to Start

The most practical approach is to work backwards from the deadline. Start with enrolment (if you have not already done so), then move to your risk assessment, then build your program and CDD procedures around it. Training should happen once the program is drafted but before obligations take effect.

If you are doing this yourself using the starter kit, give yourself at least four to six weeks. If you are engaging a consultant to build a tailored program, start the conversation now. Most reputable firms are already booking into May and June.

ComplyEdge works with real estate agencies and buyers agents to design and implement AML/CTF programs built to the standard AUSTRAC actually expects. Every engagement is scoped to your specific situation. No templates. No generic advice.

If you want clarity on what your agency needs before 1 July, book a free 15-minute readiness call with Tarun. No obligation, no jargon, just a straight answer on where you stand and what needs to happen next.

Frequently Asked Questions

Do all real estate agents need to comply with AML/CTF laws in Australia?

From 1 July 2026, real estate agents who broker the purchase, sale, or transfer of real estate must comply with AML/CTF obligations under AUSTRAC's Tranche 2 reforms. This includes listing agents, selling agents, buyers agents, and property developers who sell directly.

What is the AUSTRAC starter kit for real estate agents?

AUSTRAC has released a free program starter kit designed for small real estate agencies with 15 or fewer staff providing a single designated service. It provides a practical starting point for your AML/CTF program but must be customised to your agency's specific operations. Larger or more complex agencies cannot rely on the starter kit alone.

What happens if my real estate agency is not AML compliant by 1 July 2026?

Agencies that provide designated services without a compliant AML/CTF program in place face potential civil and criminal penalties. AUSTRAC is an active regulator, and enforcement actions are published publicly. Non-compliance also exposes your agency to reputational damage.

How long does it take to build an AML/CTF program for a real estate agency?

Using the AUSTRAC starter kit, a small agency should allow four to six weeks to customise and implement the program. A tailored program built by a consultant typically takes four to eight weeks depending on the complexity of your operations.

What is customer due diligence for real estate agents?

Customer due diligence requires you to verify the identity of buyers and sellers before or during the provision of a designated service. This includes collecting and verifying identification documents. For customers who are companies, trusts, or SMSFs, you must also identify the beneficial owners of the entity.

This information is general in nature and does not constitute legal advice. Obligations vary based on your specific circumstances. Seek independent professional advice before making decisions based on this content.