Australia’s anti-money laundering laws are set to expand from 1 July 2026, bringing property professionals and related service providers under greater regulatory scrutiny.
Tranche 2 of the reforms will introduce new compliance obligations for those involved in property transactions and may impose additional steps on buyers and sellers.
Understanding what is changing and how to adapt to the new requirements is essential for anyone operating in the property sector.
What is the AML/CTF Act?
Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF) is designed to prevent the financial system from being used for illegal activities such as money laundering and terrorism financing.
The Act currently applies to banks, lenders and other financial institutions. These entities must verify customer identities, monitor transactions and report suspicious activity to AUSTRAC, Australia’s financial intelligence agency.
What changes from 1 July 2026?
From 1 July 2026, Tranche 2 reforms will expand AML/CTF regulations to additional sectors considered to carry a higher risk of financial crime.
These include:
- real estate professionals
- lawyers and conveyancers
- accountants
- trust and company service providers
- dealers in precious stones, metals and related products
These businesses will be required to:
- conduct customer due diligence, including identity verification
- identify beneficial ownership structures
- assess and manage money laundering risks
- monitor transactions and report suspicious activity
How will this affect property professionals?
If you operate in the property sector, these reforms may require a significant shift in how your business operates to remain compliant.
The new rules will apply to buyer’s and seller’s agents, property developers and businesses selling house and land packages, off-the-plan apartments and subdivided land. Lawyers and conveyancers involved in property transactions may also need to comply when carrying out certain transaction-related services.
Here’s how you may need to adjust your operations:
1. Conduct more detailed client checks
Real estate agents, property lawyers and conveyancers will need to go beyond standard identification checks and take reasonable steps to verify the source of funds and ownership structures involved in transactions.
With more rigorous due diligence processes, you may need to allow additional time to progress from offer to exchange.
2. Implement AML/CTF compliance programs
Property businesses will need to implement AML/CTF programs suited to the services they provide. This may relate to internal policies, risk assessments, staff training and record-keeping procedures.
For example, a real estate agency may strengthen its buyer verification processes, while conveyancers managing complex transactions may undertake more detailed financial checks.
3. Monitor and report suspicious transactions
Property transactions will be subject to closer scrutiny, particularly where there are unusual structures or inconsistencies. As a reporting entity, you will be required to monitor transactions and report suspicious activity to AUSTRAC.
How to prepare for the new rules
With Tranche 2 coming into effect on 1 July 2026, early preparation will help minimise disruption to your property business.
- Review your current processes and identify where additional checks or documentation may be required.
- Implement an AML/CTF program, which may include developing new internal procedures and reporting frameworks.
- Conduct due diligence on new employees performing AML/CTF roles and ensure existing staff involved in those roles receive the appropriate training.
- Seek advice from a property lawyer who can help you understand your new legal responsibilities and establish compliant processes suited to your business.
If you’re a property professional needing assistance with new AML/CTF regulations, Outwest Legal can help. Book a consultation with one of our property law experts who can help you understand the changes and how to prepare for it.
