From July next year, Anti-Money Laundering and Counter-Terrorism Financing obligations will apply to real estate professionals following a significant expansion.
Austrac has tabled its new Anti-Money laundering and Counter-Terrorism Financing guidelines, with financial crime compliance obligations to apply to more services from 1st July 2026.
The financial intelligence agency revealed new reforms following to rounds of public consultations including accepting submissions and engaging with working group.s
The new rules, set to take effect next year, aim to reduce the risk of financial crimes within services across various industries. (yeah put more responsibilities on to smaller businesses like they have the time to do it - do your job Government)
The new obligations will be expanded to include real estate agents and property developers who sell off-the-plan without going through independent agents. (If agents thought there was something amiss they would report it anyway)
What are the requirements?
The obligations require reporting entities to enrol with AUSTRAC between 31 March 2026 and 29 July 2026 to avoid penalties.
Enrolling requires providing details about the regulated business, including its structure, services, key personnel, and contact details.
Businesses must enroll with AUSTRAC within 28 days of providing a regulated service.
Develop an AML/CTF compliance program
By 1 July 2026, real estate and property reporting entities will need to develop and maintain an AML/CTF compliance program that is tailored to their specific business needs.
“Your business must develop and maintain policies, procedures, systems and controls that appropriately manage and mitigate your business’s risks,” AUSTRAC said.
“These policies must also ensure that you comply with your AML/CTF obligations and be appropriate to the nature, size and complexity of your business.”
A senior manager must approve the business program, and it needs to be kept up-to-date to reflect any major changes within the company.
Initial and ongoing due diligence
Following the creation of the compliance program, real estate professionals must conduct initial and ongoing customer due diligence (CDD).
Initial CDD involves identifying and mitigating potential money-laundering or terrorism financing risks at the beginning of a customer relationship.
This process involves gathering specific information about them on reasonable grounds before providing them with designated services.
Ongoing CDD includes monitoring transactions and behaviours for suspicious activity, updating customer risk profiles in response to different triggers, and updating information as needed. (This is ridiculous as are the others - who has time to monitor all transactions)
Keep records
Real estate professionals will be required to make and maintain accurate records for at least seven years.
These will serve as evidence of the business’s customer due diligence, risk management practices and compliance with obligations.
The documents include transaction records, audit results and evidence of due diligence and the AML/CTF program.
To prepare for the new requirements, AUSTRAC advises soon-to-be-regulated entities to look at its website for information and to register for webinar sessions.
I cannot believe that we are now going to have yet another programme added to our never ending costs of running a business so we can do the Government's job for them, we should be compensated for that. Makes so me so wild that they cannot track these people themselves.
MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!
SELLING MOSMAN PARK & THE WESTERN SUBURBS!!
KEEPING IT REAL IS OUR MOTTO!!
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