AML Laws For Real Estate Agents And Buyers Agents: What To Know Before 2026

Property transactions can be vulnerable to money laundering risks because they often involve large sums of money, complex ownership structures and funds moving between different parties. Under Australia’s AML/CTF reforms, some real estate agents, buyers agents and other property businesses may have new compliance obligations from 1 July 2026 if they provide real estate designated services.

For affected businesses, the reforms may change how clients are onboarded, what information is collected, how identity and ownership are verified, and how records are kept. They may also require updates to privacy documents, onboarding forms, general business terms and internal compliance processes.

Why Is Real Estate A Focus Under AML/CTF Reforms?

Real estate is a focus because property can be used to move, store or disguise illicit funds. A person may use a company, trust, third party or overseas funding source to buy or sell property in a way that makes it difficult to identify who ultimately owns or controls the asset.

The reforms are designed to close gaps in Australia’s AML/CTF regime by bringing certain real estate services into the system. This does not mean every real estate business will have the same obligations in every circumstance. The key issue is whether the business provides a designated service with a geographical link to Australia.

Are Real Estate Agents And Buyers Agents Covered By The New AML/CTF Laws?

Some real estate agents and buyers agents may be covered by the new laws if they provide real estate designated services. This may include acting as a buyer’s or seller’s agent, brokering the sale, purchase or transfer of real estate, or providing other captured services connected with property transactions.

Property businesses should assess their actual services rather than assuming they are automatically captured or completely exempt. AUSTRAC guidance also indicates that some property businesses, such as developers selling directly to buyers, may need to review whether their activities are captured. This article focuses on real estate agents and buyers agents, but other property businesses should also consider whether the reforms apply to their services.

If a business provides a captured designated service, it may become a reporting entity under the AML/CTF regime.

When Do The New Obligations Start?

For newly regulated Tranche 2 businesses, AML/CTF obligations generally begin from 1 July 2026. These entities can enrol with AUSTRAC from 31 March 2026, giving them time to understand and prepare for their new obligations.

This timing matters because AML/CTF compliance is unlikely to be solved by a single document update. Real estate businesses may need time to update client onboarding processes, train staff, review privacy documents and prepare internal escalation procedures.

What Real Estate Services Could Be Affected?

Real estate designated services may include services connected with the sale, purchase or transfer of real property. This can include acting for a seller, acting for a buyer, brokering a property transaction, or assisting with property dealings where the business falls within the designated service definitions.

The article should avoid suggesting that every property-related activity is automatically captured. For example, a business that provides general property marketing or simple referrals may need a different analysis from a business directly involved in arranging or facilitating a property transaction.

What Obligations Could Apply?

If a real estate business is captured, it may need to comply with AML/CTF obligations such as customer due diligence, identity verification, beneficial ownership checks, risk assessments, suspicious matter reporting, record keeping, staff training and ongoing monitoring.

In practice, this may mean knowing who the client is, understanding who ultimately owns or controls a company or trust, and asking further questions where a transaction appears at higher risk. In some cases, this may include asking about source of funds or source of wealth, particularly where the transaction involves unusual funding arrangements, complex structures or other red flags.

How Could Client Onboarding Change?

Client onboarding may be one of the most noticeable changes for real estate businesses. Agents and buyers agents may need to collect more information before acting for a client, especially where the client is a company, trust, overseas person or represented by a third party.

This may include identity documents, company or trust information, beneficial ownership details and additional information about the transaction. Businesses may also need a process for deciding when to ask follow-up questions, delay work, escalate concerns internally or decline to act.

This could affect the client experience. Clients may be asked for more information than they are used to providing, and transactions may take longer if verification information is incomplete or raises concerns.

Privacy And Data Handling For Real Estate Businesses

The reforms may require real estate businesses to collect and store more personal information than before. This could include identity documents, ownership details, company information, trust information and records of verification checks.

This creates privacy and data handling issues. Businesses may need to review privacy policies, collection notices and internal processes so clients understand why information is being collected, how it will be used, how it will be stored and when it may be disclosed for legal or regulatory reasons.

Why Client Terms, Privacy Documents And Onboarding Forms May Need Updating

For affected businesses, general legal documents may need to support the new onboarding and compliance processes. Client terms, privacy policies, collection notices and onboarding forms may need to explain that the business can request identity documents, ownership information or other details before providing services.

These documents may also need to address what happens if a client does not provide required information. For example, the business may need to explain that services could be delayed, suspended or declined if identity verification cannot be completed or AML/CTF concerns arise.

Referral agreements and data-sharing arrangements may also need review where information is shared with third parties, such as verification providers, mortgage brokers, conveyancers or other professional advisers.

Legal documents will not replace a full operational AML/CTF program where one is required. However, they can help support compliance by setting expectations with clients and giving the business clearer processes for requesting information, managing delays and handling privacy issues.

Staff Training And AML/CTF Red Flags

Real estate staff may need training because suspicious activity is not always obvious. Red flags may include a client refusing to provide identification, unclear source of funds, inconsistent information, unusual payment arrangements, complex company or trust structures, third parties giving instructions, or pressure to move quickly without proper checks.

The aim is not to make agents suspicious of every client. Instead, businesses should have a clear process for recognising potential red flags, escalating concerns internally and seeking specialist advice where needed.

What Should Real Estate Agents And Buyers Agents Do Now?

Real estate businesses should start by identifying whether their services may be captured by the reforms. From there, they can review client onboarding workflows, privacy documents, general business terms and internal compliance processes. 

A practical preparation process may include reviewing the services your business provides, checking what client information is currently collected, updating privacy policies and collection notices, reviewing onboarding forms and client terms, training staff on AML/CTF red flags, documenting escalation procedures and considering specialist AML support where required.

FAQs

Do AML laws apply to real estate agents in Australia?

Some real estate agents may be regulated if they provide real estate designated services. The rules apply based on the services provided, not simply because a business operates in the real estate industry.

Are buyers agents covered by AML/CTF laws?

Buyers agents may be covered if they provide captured services connected with the purchase or transfer of real estate. Buyers agents should review their services and consider whether the AML/CTF reforms apply.

Are property developers covered by the AML/CTF reforms?

Some property developers or direct property sellers may need to review whether their activities are captured, particularly where they sell property directly to buyers. This article focuses on real estate agents and buyers agents, but other property businesses should also consider whether they provide designated services.

What information will real estate businesses need to collect?

Affected businesses may need to collect identity documents, company or trust information, beneficial ownership details and other information needed to complete customer due diligence. Higher-risk transactions may require additional questions about source of funds or source of wealth.

Do real estate agents need to check the source of funds?

Not every matter will necessarily require the same level of checking. However, source of funds or source of wealth questions may be relevant where a transaction appears higher risk, involves unusual funding arrangements, or raises AML/CTF concerns.

Should real estate businesses update their client documents?

Affected businesses should consider reviewing their privacy policies, collection notices, onboarding forms, client terms, referral agreements and internal compliance documents so they align with new AML/CTF processes.

Can Sprintlaw help with AML/CTF compliance for real estate businesses?

Sprintlaw can help with general business legal documents that may be affected by the reforms, such as privacy policies, collection notices, onboarding documents, website terms and internal compliance policies. Some businesses may also need specialist AML advice or industry-specific property law advice for operational AML implementation or transaction-specific issues.

Need Help Updating Your Documents For The AML/CTF Reforms?

If your real estate business may be affected by the AML/CTF reforms, it’s a good idea to start reviewing your client-facing documents and onboarding processes early.

Need help updating your privacy policy, client onboarding documents or general business terms for the AML/CTF reforms? You can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.