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While upcoming AML/CTF reforms will impose new compliance rules on real estate professionals, the Real Estate Institute of Australia noted that recent draft changes stand to reduce costs and simplify compliance.
The Second Exposure Draft of the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Rules has been released, outlining several proposed changes to the legislation that will extend obligations to real estate entities.
The Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 was passed through Parliament in November of last year, and from 1 July 2026 onwards, will impose new compliance obligations on tranche 2 entities such as real estate professionals.
Industry figures previously sounded the alarm on the estimated $2 billion annual costs that the sector could incur through the AML/CTF rules.
Under the new rules, real estate professionals would require to complete due diligence on buyers and sellers, monitor transactions, and report any risks to regulatory bodies.
CEO of the Real Estate Institute of Australia (REIA), Scott Rollason, said the new draft drew upon an extensive industry consultation process and incorporated a number of key recommendations advocated by REIA.
“Notably, it includes provisions for delayed customer diligence on buyers and introduces a more practical approach to reliance – allowing real estate agents to rely on conveyancer due diligence in certain circumstances,” Rollason said.
“These changes will significantly reduce administrative burdens and AML compliance costs for sellers,” he added.
Rollason said that the practical adjustments outlined in the second draft would make a “real difference to agencies on the ground”, and said the REIA would continue to review and provide feedback on future incarnations of the AML/CTF rules.
To support the property industry throughout the transition, REIA also announced a new partnership with regulatory technology provider, First AML, which offers an integrated AML and KYC (Know Your Customer) platform to help businesses meet compliance requirements.
First AML CEO, Milan Cooper, said that the company was excited to partner with REIA and help the property sector adapt to oncoming AML/CTF obligations.
“We’re thrilled to partner with REIA at this pivotal time,” Cooper said.
“Our platform is designed to simplify AML compliance, helping real estate professionals meet their obligations efficiently while delivering a smooth experience for clients,” he concluded.
The final AML/CTF rules are set to be published in August of this year, leading up to the release of Industry Specific Guidance - Small Business Starter Kits later in December, and implementation of AML/CTF obligations for real estate professionals on 1 July 2026.
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