AML/CTF playbook for real estate agencies
Tranche 2 from 1 July 2026 — which agency activities are designated services, AUSTRAC enrolment, the AML/CTF program (ML/TF risk assessment + AML/CTF policies, formerly Part A / Part B), KYC for vendors and purchasers, beneficial owner identification, trust account interaction, PEP screening, SMR + TTR reporting, tipping-off, record-keeping, and the role of the AMLCO in a real-estate practice.
Key deadlines — next 12 months
- 29 July 2026AUSTRAC enrolment deadline (Tranche 2)
- 31 March 2027First AUSTRAC Compliance Report (ACR)
- Within 3 business daysLodge any SMR after suspicion formed
- Within 10 business daysLodge any TTR (cash ≥$10,000)
Does this apply to me?
Answer yes to any of the below and the obligations in this playbook are likely relevant.
- 1Do you act as a real estate agent — selling, exchanging or transferring real estate on behalf of a vendor or purchaser, anywhere in Australia?
- 2Do you act as a buyer's agent introducing a purchaser to a vendor for the sale of real estate?
- 3Do you assist with conveyancing, settlement administration or post-sale transfer activities?
- 4Do you handle trust account funds in connection with the sale or transfer of real estate?
- 5Do you operate in luxury / off-plan / prestige property — where higher-risk customer profiles (PEPs, complex ownership structures, foreign purchasers) are more likely?
Plain English summary
Tranche 2 of the AML/CTF Act commenced on 1 July 2026. Real estate agents are now reporting entities. The designated services schedule captures: selling or transferring real estate on behalf of a vendor; selling or transferring real estate on behalf of a purchaser; introducing a buyer to a vendor (or vendor to buyer); and acting as a buyer's agent.
The captured activity is the agency transaction, not the listing. A property listing is not a designated service; the moment a real estate agent receives a deposit, signs a contract on the vendor's behalf, or formally represents a purchaser, designated service status is triggered. Property management for rental properties is not captured (residential property management does not transfer ownership). Auctioneers acting on behalf of vendors are captured.
Under table 5, item 1 of section 6 of the AML/CTF Act, the customers of the brokering service are both the seller (or transferor) and the buyer (or transferee). AUSTRAC's real estate guidance is explicit: an agent who acts for the seller and brokers the sale has both the buyer and the seller as customers, with AML/CTF obligations — including customer due diligence — in relation to both. The guidance also covers beneficial ownership identification for company purchasers, trust purchasers and foreign-purchaser structures; and PEP screening obligations. Trust account interaction triggers TTR obligations (threshold transaction reports) when cash deposits or transfers above AUD 10,000 are involved.
This playbook lists every obligation that applies to a Tranche 2 real estate agency, the Act section it sits under, who in the agency is accountable, the frequency, the maximum penalty, and a regulator-direct source. Cross-link to the AML Tranche 2 scope checker and beneficial owner identifier for the practical pieces.
Obligation checklist
Every obligation cites the Act and section. Source URLs link to the regulator's portal — Rules Mate does not republish statutory text.
- 1
AML/CTF Act 2006, s 51B (enrolment)
Enrol the agency with AUSTRAC as a reporting entity within 28 days of first providing a designated service. For agencies providing designated services from 1 July 2026 that deadline was 29 July 2026 — if you missed it, enrol now.
- Who's responsible
- Principal / Licensee in charge
- Frequency
- One-off (plus updates within 14 days of material change)
- Penalty
- Each day unenrolled can be a separate contravention. Infringement notice of 60 penalty units ($21,840) for a company or 12 penalty units ($4,368) for an individual per contravention, or a civil penalty of up to $36.4M (body corporate), maximum per contravention.
- Source
- Regulator-direct link
- 2
AML/CTF Act Part 1A (AML/CTF programs); AML/CTF Rules 2025
Document an ML/TF risk assessment of the agency's exposure by transaction type (residential vs commercial), price point (entry vs luxury), customer type (individuals, companies, trusts, foreign purchasers), source of funds, and jurisdiction — and AML/CTF policies to mitigate and manage those risks (the reformed structure that replaced the former Part A / Part B program).
- Who's responsible
- Principal / Licensee in charge
- Frequency
- Ongoing; update the risk assessment on significant change
- Penalty
- Civil penalty up to $36.4M (body corporate) or $7.28M (individual), maximum per contravention.
- Source
- Regulator-direct link
- 3
AML/CTF Act Part 2 (customer due diligence); AML/CTF Rules 2025
Identify and verify every customer before providing the designated service — when you broker a sale, that is BOTH the vendor and the purchaser, even if you act only for the vendor (s 6 table 5 item 1). Real estate CDD may be delayed to the earlier of 28 days after exchange or 3 days before settlement (Rules r 6-32(4)). For individuals: government-issued ID. For companies: directors + beneficial owners. For trusts: trustees + beneficiaries + settlor. For foreign purchasers: passport + source-of-funds documentation.
- Who's responsible
- AMLCO + sales agents
- Frequency
- Per transaction
- Penalty
- Each unverified customer can be a separate civil penalty contravention.
- Source
- Regulator-direct link
- 4
AML/CTF Act 2006, s 41A (beneficial owner identification)
Identify and verify beneficial owners (≥25% control or ownership) for non-individual purchasers and vendors. For company purchasers: trace to natural-person ultimate controllers. For trust purchasers: identify trustees + beneficiaries.
- Who's responsible
- AMLCO + sales agents
- Frequency
- Per transaction
- Penalty
- Each unverified beneficial owner is a separate breach.
- Source
- Regulator-direct link
- 5
AML/CTF Rules Part 4.13 (PEPs — politically exposed persons)
Screen every customer + beneficial owner against PEP lists (foreign + domestic + international organisation). PEPs trigger Enhanced Customer Due Diligence: senior management approval, source-of-wealth, source-of-funds, ongoing review.
- Who's responsible
- AMLCO
- Frequency
- At onboarding + on customer-risk change
- Penalty
- Civil penalty regime to AML/CTF Act maximum.
- Source
- Regulator-direct link
- 6
Charter of the United Nations Act 1945 + Autonomous Sanctions Act 2011
Screen vendors, purchasers and beneficial owners against the DFAT Consolidated List of sanctioned persons. Refuse to act if a sanctions hit is confirmed.
- Who's responsible
- AMLCO
- Frequency
- Per transaction + ongoing
- Penalty
- Criminal — up to 10 years imprisonment; strict liability for the conduct.
- Source
- Regulator-direct link
- 7
AML/CTF Act 2006, ss 41-42 (SMR)
Lodge an SMR via AUSTRAC Online within 3 business days of forming a suspicion (24 hours for terrorism financing). Triggers for real estate include: unusual source of funds, cash deposits, third-party settlements, structuring, purchaser unwilling to provide ID.
- Who's responsible
- AMLCO
- Frequency
- Event-driven
- Penalty
- Failure to report: civil penalty up to $36.4M (body corporate), maximum per contravention. Tipping off is a separate criminal offence (up to 2 years imprisonment and/or 120 penalty units).
- Source
- Regulator-direct link
- 8
AML/CTF Act 2006, s 43 (TTR)
Lodge a TTR within 10 business days for any cash transaction of AUD 10,000 or more — including cash deposits into the trust account. Suspicious cash transactions also trigger an SMR.
- Who's responsible
- AMLCO + trust account manager
- Frequency
- Event-driven
- Penalty
- Civil penalty up to $36.4M (body corporate) or $7.28M (individual), maximum per contravention.
- Source
- Regulator-direct link
- 9
AML/CTF Act 2006, s 36 (ongoing CDD)
Apply ongoing CDD for repeat clients (property developers, sophisticated investors, syndicates). Transaction monitoring + periodic re-verification + trigger-based review.
- Who's responsible
- AMLCO + senior agents
- Frequency
- Ongoing
- Penalty
- Civil penalty regime to AML/CTF Act maximum.
- Source
- Regulator-direct link
- 10
AML/CTF Rules Part 15 (Enhanced CDD)
Apply ECDD where higher risk is identified: PEPs, foreign purchasers from high-risk jurisdictions, complex ownership, source-of-funds unclear, cash-heavy transactions. Document senior approval.
- Who's responsible
- AMLCO
- Frequency
- Event-driven
- Penalty
- Civil penalty regime to AML/CTF Act maximum.
- Source
- Regulator-direct link
- 11
AML/CTF Act 2006, s 123 (tipping-off)
Do not disclose to the vendor, purchaser or any other person that an SMR has been or is being lodged, that AUSTRAC has been notified, or that information has been requested by AUSTRAC.
- Who's responsible
- Every staff member
- Frequency
- Continuous
- Penalty
- 2 years imprisonment and/or 120 penalty units ($43,680).
- Source
- Regulator-direct link
- 12
AML/CTF Act 2006, Part 10 (record-keeping)
Keep KYC records, transaction records, trust account records, SMR working papers, training records and program documents for 7 years after the customer relationship ends or the transaction occurred.
- Who's responsible
- AMLCO + practice manager
- Frequency
- Continuous (7-year retention)
- Penalty
- Civil penalty up to $36.4M (body corporate) or $7.28M (individual), maximum per contravention.
- Source
- Regulator-direct link
- 13
AML/CTF Act Part 1A (independent evaluation); AML/CTF Rules 2025
Arrange an independent evaluation of the whole AML/CTF program at least once every 3 years, at a frequency set in your AML/CTF policies (higher-risk agencies may set a shorter cycle). For newly regulated agencies the first evaluation is due between 30 June 2029 and 31 December 2030, depending on the last two digits of the AUSTRAC account number.
- Who's responsible
- Principal (commission), AMLCO (manage delivery)
- Frequency
- At least once every 3 years (frequency set in your policies)
- Penalty
- Civil penalty regime to AML/CTF Act maximum ($36.4M body corporate, maximum per contravention).
- Source
- Regulator-direct link
- 14
AML/CTF Rules Part 8.2 (AML/CTF Compliance Officer)
Designate an AMLCO employed or engaged at management level, who is a fit and proper person with sufficient authority, independence and resources, and notify AUSTRAC (Tranche 2: by the later of 29 July 2026 or 14 days after enrolling). Sole-principal agencies will usually designate the principal. Check AUSTRAC's compliance officer guidance before outsourcing any part of the role — outsourcing does not transfer liability.
- Who's responsible
- Principal
- Frequency
- Continuous
- Penalty
- Civil penalty regime to AML/CTF Act maximum.
- Source
- Regulator-direct link
- 15
AML/CTF Rules Part 8.3 (training)
Train every sales agent + AMLCO on AML/CTF risks specific to real estate transactions. Annual refresher. Document attendance.
- Who's responsible
- AMLCO
- Frequency
- On hire + annual
- Penalty
- Civil penalty regime to AML/CTF Act maximum.
- Source
- Regulator-direct link
- 16
AML/CTF Act 2006, s 47 (ACR)
Lodge the annual AUSTRAC Compliance Report by 31 March each year covering the prior calendar year. Self-attestation to enrolment, program, training, independent evaluation.
- Who's responsible
- AMLCO
- Frequency
- Annual — calendar-year basis
- Penalty
- Failure to lodge: civil penalty + AUSTRAC remediation directions.
- Source
- Regulator-direct link
- 17
State Real Estate licensing law (NSW Property and Stock Agents Act 2002, VIC Estate Agents Act 1980, QLD Property Occupations Act 2014, etc.)
Maintain the state real estate licence in good standing. Trust account audit, professional indemnity, CPD. AML/CTF breaches can trigger fit-and-proper-person review by the state regulator.
- Who's responsible
- Principal / Licensee
- Frequency
- Continuous
- Penalty
- Licence suspension or cancellation; state-specific civil penalties.
- Source
- Regulator-direct link
Deadlines
Pulled from the Rules Mate compliance calendar. Click through for the full deadline page.
- 1 July 2026
AML/CTF Tranche 2 commences
AML/CTF Act extends to Tranche 2 sectors. Enrolment + program + CDD + reporting obligations begin.
- 29 July 2026
AUSTRAC enrolment deadline (Tranche 2)
Last day to complete AUSTRAC enrolment if you provided a designated service on day one of Tranche 2.
- 1 July 2026
AML/CTF Tranche 2 commences
AML/CTF Act extends to Tranche 2 sectors. Enrolment + program + CDD + reporting obligations begin.
Forms and regulator portals
Direct links to the lodgement forms and regulator portals. Rules Mate does not host copies — we link to the official source.
AUSTRAC Online enrolment form
Web-based enrolment for reporting entities. Required within 28 days of first designated service.
Open portal →Suspicious Matter Report (SMR)
Lodged via AUSTRAC Online. 3 business days from suspicion formation.
Open portal →Threshold Transaction Report (TTR)
Lodged via AUSTRAC Online. 10 business days for cash transactions ≥AUD 10,000.
Open portal →AUSTRAC Compliance Report (ACR)
Annual self-attestation. Due 31 March each year for the prior calendar year.
Open portal →AUSTRAC Real Estate sector guidance
Sector-specific AML/CTF guidance for real estate agents — when brokering, both the buyer and the seller are customers for CDD.
Open portal →
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What changes 2025–2026
31 March 2026 — AUSTRAC enrolment opened
Real estate agencies could enrol on AUSTRAC Online from 31 March 2026.
1 July 2026 — Tranche 2 commenced
The AML/CTF Amendment Act 2024 extended the regime to real estate agents. Obligations are in force now; the ML/TF risk assessment must be in place before a designated service is provided.
29 July 2026 — Enrolment deadline (passed)
An agency that provided a designated service from 1 July 2026 had to enrol by 29 July 2026; an agency that starts later has 28 days from its first designated service. Each day unenrolled can be a separate contravention.
28 August 2026 — Notices to unenrolled agencies
AUSTRAC began issuing information notices to apparently unenrolled real estate agents, accountants, lawyers and jewellers: "The time for preparation has passed."
FY26/27 — "Effort, not perfection"
AUSTRAC expects newly regulated businesses to be enrolled, have an AML/CTF program and compliance officer, train staff and be ready to report — effort, not perfection, in FY26/27 — with early enforcement against failure to enrol and complicity in money laundering.
31 March 2027 — First ACR
The first AUSTRAC Compliance Report for Tranche 2 real estate covers H2 2026 and is due 31 March 2027.
2026-2027 — State regulator coordination
NSW Fair Trading, Consumer Affairs Victoria and the Queensland Office of Fair Trading have signalled they will treat AUSTRAC breaches as a fit-and-proper-person matter for state licensing.
In-depth reading
10 Rules Mate articles tagged to this playbook.
AML Tranche 2 for real estate agents: the complete compliance checklist
Real estate is the largest sector captured by AML/CTF Tranche 2 from 1 July 2026. This checklist covers enrolment, your AML/CTF program, customer due diligence, reporting, and the deadlines that matter.
AML/CTF Tranche 2: the complete guide for real estate, accounting, legal, conveyancing, TCSPs and precious metals
Plain-English guide to the 1 July 2026 AML/CTF Tranche 2 reforms. Who's captured, what designated services trigger you, the seven obligations that follow, and how to prepare.
AUSTRAC enrolment for Tranche 2: step-by-step (and what to do if you missed 29 July)
The Tranche 2 enrolment window ran 31 March – 29 July 2026. Step-by-step walkthrough of who must enrol, what you need, how to lodge — and why late enrolment beats non-enrolment if you missed the window.
Suspicious Matter Reports (SMRs): the 3-business-day and 24-hour rules, and tipping off
AUSTRAC reporting entities must lodge a Suspicious Matter Report within 3 business days of forming a suspicion — or within 24 hours if it relates to terrorism financing. Tipping off a customer is a separate criminal offence.
AUSTRAC Compliance Report (ACR): the annual lodgement explained
Reporting entities must lodge an annual AUSTRAC Compliance Report covering the preceding calendar year. Here's what's in it, the due date, and how AUSTRAC uses the data.
The AML/CTF risk-based approach: how AUSTRAC expects you to identify and mitigate risk
The AML/CTF Act 2006 requires reporting entities to take a risk-based approach to compliance. Here's how AUSTRAC expects you to identify, mitigate and manage money-laundering and terrorism-financing risk.
Australian compliance calendar 2026–2027: every deadline you need
A month-by-month list of every major Australian compliance deadline for 2026 and 2027 — tax, super, AML, privacy, climate, WHS, modern slavery. Free .ics download.
Every Australian compliance change starting 1 July 2026
1 July 2026 is the biggest single compliance date of the year: Payday Super, AML/CTF Tranche 2, new tax thresholds, the super guarantee rate, and CPS 230 for super funds all start. Here's the complete list.
AML Tranche 2 for accountants: the compliance checklist
Accountants and tax advisers providing designated services are captured by AML/CTF Tranche 2 from 1 July 2026. This checklist covers capture, enrolment, your program, CDD and reporting.
AML Tranche 2 for lawyers and conveyancers: the compliance checklist
Law firms and conveyancers providing designated services are captured by AML/CTF Tranche 2 from 1 July 2026. Checklist of capture, enrolment, program, CDD, reporting and legal professional privilege.
Frequently asked
Is residential property management captured?
No. The designated services schedule captures real estate sale/transfer activities — not the holding of rental funds or property management. Property management on behalf of a landlord is not a Tranche 2 designated service. Sale of an investment property at the end of the management relationship is.
Do we need to verify ID before signing the sale contract or before settlement?
Before providing the designated service — which for an agent representing a vendor is at the point the agency agreement is signed. For a buyer's agent, it's at the point the purchase mandate is signed. AUSTRAC's sector guidance is explicit: verify at the start of the relationship, not at settlement.
Who's the customer in a dual-side transaction (we represent both)?
Both. Each side is a customer for the purpose of the designated service being provided to them. KYC and beneficial owner identification must be done for both.
What about foreign purchasers? Does FIRB cover us?
FIRB approval is a separate regime (Foreign Acquisitions and Takeovers Act 1975). FIRB approval does not satisfy AML/CTF CDD. Foreign purchasers from higher-risk jurisdictions trigger Enhanced Customer Due Diligence: source-of-funds documentation, ownership trace, sanctions screening.
Are auctioneers captured?
Yes if acting on behalf of a vendor — selling real estate on behalf of a vendor is a designated service. The auctioneer is the agent of the vendor. Independent auctioneer services for council-rates auctions or specific exempt scenarios may differ — refer to the AUSTRAC sector guidance.
What's the penalty risk for a small agency?
The statutory maximum is $36.4M for a body corporate or $7.28M for an individual, per contravention. AUSTRAC has said it expects "effort, not perfection" from newly regulated businesses in FY26/27, but will take early enforcement action against businesses that fail to enrol or are complicit in money laundering; it began issuing information notices to apparently unenrolled agencies on 28 August 2026. Infringement notices ($21,840 per contravention for a company) are available for failures such as not enrolling. Reputational risk and state-licence risk are also practical pressures.
Does the trust account audit cover AML compliance?
No. The trust account audit is a state-licensing requirement. AUSTRAC AML/CTF requirements are separate. Some auditors will offer AML compliance reviews as an add-on, but the AMLCO function and the independent evaluation of your AML/CTF program (at least once every 3 years) are separate obligations.
Does the Privacy Act apply to a small agency's AML/CTF work?
Yes. Under s 6E(1A) of the Privacy Act 1988, a small business operator that is an AML/CTF reporting entity is treated as an organisation for its AML/CTF activities — so the Australian Privacy Principles apply to the KYC and other personal information you handle for AML/CTF purposes, even if your turnover is under $3M. Source: https://www.legislation.gov.au/C2004A03712/latest/text
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