AML/CTF playbook for real estate agencies
Tranche 2 from 1 July 2026 — which agency activities are designated services, AUSTRAC enrolment, the Part A and Part B program, 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.
AUSTRAC has published Tranche 2 sector guidance specifically for real estate that walks through customer due diligence in vendor-side, purchaser-side, and dual-side transactions; 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. New Tranche 2 entities have until 29 July 2026.
- Who's responsible
- Principal / Licensee in charge
- Frequency
- One-off (plus updates within 14 days of material change)
- Penalty
- $19,800 per day continuing offence (60 penalty units, body corporate).
- Source
- Regulator-direct link
- 2
AML/CTF Act 2006, Part 7 + AML/CTF Rules Part 8 (Part A program)
Adopt a written Part A AML/CTF program — risk-assess 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.
- Who's responsible
- Principal / Licensee in charge
- Frequency
- Ongoing, reviewed annually
- Penalty
- Civil penalty up to $33M per contravention (body corporate).
- Source
- Regulator-direct link
- 3
AML/CTF Rules Part 8.4 (Part B program — KYC)
Identify and verify every customer (vendor or purchaser) before providing the designated service. 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. 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 $33M. Tipping-off: 2 years imprisonment.
- 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 $33M 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 ($39,600).
- 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 $33M per contravention.
- Source
- Regulator-direct link
- 13
AML/CTF Rules Part 8.6 (independent review)
Arrange independent review of the Part A program at risk-based intervals. Lower-risk small agencies: every 2-3 years. Higher-risk (luxury / prestige / off-plan): annually.
- Who's responsible
- Principal (commission), AMLCO (manage delivery)
- Frequency
- Risk-based; minimum every 2 years
- Penalty
- Same regime as AML/CTF Act breaches; informs AUSTRAC enforcement posture.
- Source
- Regulator-direct link
- 14
AML/CTF Rules Part 8.2 (AML/CTF Compliance Officer)
Designate a senior employee as AMLCO with sufficient seniority + authority + resources. For sole-principal agencies, the principal is AMLCO by default. Cannot be outsourced.
- 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 review.
- 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 commencement (real estate, lawyers, accountants, TCSPs, dealers)
5 new sectors brought into AML/CTF regime. Enrol with AUSTRAC; design Part A + Part B; CDD.
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 — vendor / purchaser / dual-side CDD.
Open portal →
Free tools that help
Interactive Rules Mate tools matched to this persona.
What changes 2025–2026
31 March 2026 — AUSTRAC enrolment opens
Real estate agencies can enrol on AUSTRAC Online from 31 March 2026.
1 July 2026 — Tranche 2 commences
The AML/CTF Amendment Act 2024 extends the regime to real estate agents. Designated services from this date must have an AML/CTF program in place.
29 July 2026 — Enrolment deadline
Any Tranche 2 agency that provided a designated service between 1 July and 29 July 2026 must be enrolled by 29 July.
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: a step-by-step (enrolment opens 31 March 2026)
AUSTRAC enrolment opens 31 March 2026 and closes 29 July 2026 for Tranche 2 entities. Step-by-step walkthrough of who, when, what you need, and how to lodge.
Suspicious Matter Reports (SMRs): the 24-hour rule and the tipping-off offence
AUSTRAC reporting entities must lodge a Suspicious Matter Report within 24 hours of forming a suspicion. 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?
Statutory maximum is $33M per civil contravention. AUSTRAC's enforcement posture for the first 12-18 months of Tranche 2 will be education-first for genuine compliance failures, but tipping-off and refusal-to-enrol breaches will draw proceedings from day one. Reputational risk and state-licence risk are arguably bigger practical pressures than civil penalty exposure.
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 independent review under the AML/CTF Rules are independent obligations.
Free assessment
Get a personalised obligation list
2-minute structured check tailored to your business.
AI advisor (waitlist)
Ask any compliance question
Coming Phase 2 — grounded answers with citations.