From 1 July 2026, Real Estate professionals will face significant new compliance obligations under updated anti-money laundering and counter-terrorism financing (AML/CTF) legislation. These reforms recognise that property transactions can be used to conceal illicit funds and place responsibility on agencies to actively manage this risk.

Why the Changes Matter

Real Estate has long been considered a high-risk sector for financial crime. Property can store large amounts of value, appreciate over time, and generate income through rent or resale. These features make it attractive to criminals seeking to legitimise illegally obtained funds. Regulators are therefore extending AML/CTF requirements to Real Estate Agents and Buyer’s Agents to close this regulatory gap.

What Agencies Need in Place

Before 1 July 2026, agencies must implement a formal AML/CTF program prior to facilitating any property sale, purchase, or transfer. This program should be tailored to the size and risk profile of the business and clearly document how the agency identifies, assesses, and manages money-laundering and terrorism-financing risks. We recommend you get this done by May 2026

Key components should include:

  • Customer identification procedures — verifying client identity and understanding who you are dealing with.
  • Risk assessment processes — identifying high-risk clients, transactions, or jurisdictions.
  • Ongoing monitoring — reviewing transactions for unusual or suspicious activity.
  • Record keeping — maintaining documentation that demonstrates compliance.
  • Staff training — ensuring employees understand risks, red flags, and reporting procedures.
  • Building on Existing Practices

Many agencies already conduct identity checks or due diligence as part of their standard processes. The new requirements do not necessarily mean starting from scratch; instead, they require formalising and documenting these measures within a structured compliance framework & Software.

Benefits Beyond Compliance

While the reforms introduce new responsibilities, they also deliver practical advantages. A strong AML/CTF program can:

  • Protect your business from being misused for financial crime
  • Reduce legal and reputational risk
  • Support consistent, defensible decisions about clients and transactions

Getting Started

Agencies should begin preparing now by reviewing current procedures, identifying gaps, and developing a written compliance program. Early preparation will help ensure a smooth transition before the July 2026 deadline.

For more information on how to get started, visit the AUSTRAC website or for a AML Compliance Checklist.

If you need help updating your policies, navigating End of Month compliance, or want a tailored compliance check, End of Month Angels are here to support real estate businesses across Australia. Contact us HERE