News & Insights

As anticipated, the Anti-Money Laundering and Counter-Terrorism Financing (AMT/CTF) Bill was passed by both houses on the 29 November 2024, and is set to capture the Real Estate sector for compliance with the legislation by July 2026.

Businesses captured will include real estate agents, conveyancers, vendor- and buyer-advocates, and direct property developers as well as many others. What these professions might not be aware of though is the amount of work that lays ahead of them as they prepare to meet the regulations of the newly passed Bill.

Why include Real Estate Agents in the Anti-Money Laundering and Counter-Terrorism Financing regime?

Criminals often buy high-value goods, such as Real Estate, as a way of laundering or concealing illicit funds. Australia is now being seen as an easy target for the investment of foreign proceeds of crime in Real Estate. Compared to other methods, money laundering through Real Estate can be relatively simple and requires little planning or expertise. Real Estate can also be used to conduct illegal activities such as the growing or producing of illicit drugs.

The AML/CTF reforms introduce a list of “designated services” performed by Real Estate Agents and Conveyancers, being services that have been identified as posing a risk for money laundering and terrorism financing.

What are the “designated services” relating to Real Estate?

The “designated services” that relate to Real Estate transactions, applying to both Real Estate Agents and conveyancers, will capture:

• brokering the sale or transfer of real estate on behalf of a buyer, seller, transferee or transferor in the course of carrying on a business; and
• selling or transferring real estate in the course of carrying on a business selling real estate, where the sale or transfer is not brokered by an independent real estate agent.

Where legal advice on compliance can help

The Anti-Money Laundering and Counter-Terrorism Financing regime is complex and has a lot of policies, procedures and training that will need to be introduced. The time to prepare relevant documentation and the costs involved to comply with the regime means there is little time to seek advice and be ready to comply with the legislation by 1 July2026.

At Macpherson Kelley we are happy to assist with all or some of the following:

• Advice on whether you need to comply and the steps you can be taking now to prepare for the legislation compliance dates.
• Foundational AML/CTF training seminars for your business and staff, outlining how the regime will apply to Real Estate Agents and Conveyancers.
• Auditing your current products, services, practice and procedures, to ascertain the scope of “designated services”.
• Undertaking a risk assessment of your current business and helping you assess your business’ risk appetite.
• Preparing the drafts of your required AML/CTF policies and Program documents.
• Providing updates and communications to clients/customers on the AML/CTF changes.

Please reach out to our expert trade and compliance team for support as Professional Services rush to navigate what the recent passing of the Bill will mean for them in the new year.

The information contained in this article is general in nature and cannot be relied on as legal advice nor does it create an engagement. Please contact one of our lawyers listed above for advice about your specific situation.