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Over three-quarters of real estate agents around Australia have shown concerns about the upcoming anti-money laundering and counter-terrorism financing (AML/CTF) that will kick off next June, a new survey showed.
The research comes after the Australian Transaction Reports and Analysis Centre’s (AUSTRAC) release of the second exposure draft of the AML/CTF Rules 2025, which will impose new compliance obligations on participants in the real estate transaction process from 1 July 2026 onwards.
Under the new rules, each party in the property supply chain – including real estate agents, property developers, buyer and seller advocates, lawyers, and conveyancers – will be required to complete due diligence on buyers and sellers, monitor transactions, and report any risks to regulatory bodies.
Ahead of the changes, PEXA questioned more than 200 lawyers, conveyancers, and 100 real estate agents, which revealed an optimism about increased accountability, but also a significant lack of understanding of the impact the new AML/CTF laws would have on property transactions.
PEXA’s survey showed that over three-quarters (77 per cent) of real estate agents were concerned about preparing for new compliance obligations, such as the complexity and cost of the changes to their business, and the impacts that potential delays to settlement could have on customers.
As a result of the broad uncertainty around the upcoming AML/CTF requirements, 29 per cent of real estate agents said they were unfamiliar with the new obligations, compared to 65 per cent of lawyers and conveyancers.
While some professionals said they had a moderate understanding of the impact of the new AML/CTF rules, this proportion still numbered less than half (42 per cent) of real estate agent respondents, and just 38 per cent of lawyers and conveyancers.
On the positive side, general comments from participants said that the AML/CTF changes would help to enhance the integrity and transparency of the Australian property market, and help to attract more legitimate investors while minimising the risk of illegal activity.
Responses from survey participants also warned that the changes could add another layer of complexity that would increase the time, workload and costs of property transactions, and inflict a significant burden on small business owners with fewer resources to meet the new AML/CTF obligations.
Additionally, PEXA’s survey showed that only 25 per cent of real estate agents were unprepared for the upcoming changes, as opposed to over three-quarters (78 per cent) of lawyers and conveyancers who said they were not yet prepared to handle the new obligations.
PEXA’s general manager of strategy and delivery, Kate Camilleri, said the second draft of the AML/CTF rules had been informed by consultation with the property industry.
“Through these rules, the federal government and AUSTRAC have listened to the industry and are demonstrating their support for an efficient and effective industry solution,” Camilleri said.
Nevertheless, Camilleri said PEXA’s recent survey results indicated that more work will need to be done to ensure that all participants in the property transaction process are equipped to handle the new AML/CTF rules.
“It is accepted across the industry that these reforms will be a challenge, and we all need to work together to find the best way forward for all participants,” Camilleri concluded.
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