AML/CTF Programme for Real Estate Agents: 2026 Guide

From 1 July 2026, every Australian real estate agent providing designated services under the AML/CTF Act 2006 must have a written, approved AML/CTF Programme in place. Now that Tranche 2 has commenced, the programme — a two-part document covering governance and customer due diligence — is the document AUSTRAC will look for first when assessing whether your agency meets its obligations.

Does Your Agency Need an AML/CTF Programme?

Real estate agents are captured by the Tranche 2 reforms when they provide a designated service. For agents, the key triggers are: - Selling or purchasing real property on behalf of a client — residential, commercial, and rural sales and auctions where the agent acts as intermediary - Leasing commercial real property — commercial lease transactions where money flows through the agency Property management of residential tenancies, valuations, and general advisory work are not designated services. If your agency conducts property sales or commercial leasing, the programme obligation applies from 1 July 2026.

What Must Part A of the Programme Contain?

Part A covers governance and risk management. A compliant Part A for a real estate agency must address: - ML/TF risk assessment — a documented analysis of your exposure across clients, transactions, channels, and jurisdictions - Customer acceptance policy — the criteria your agency applies before taking on a vendor or buyer - AMLCO appointment — the named Compliance Officer, their responsibilities, and reporting line to the principal - Senior management oversight — evidence the principal has approved the programme and receives regular updates on its operation - SMR procedures — how suspicions are escalated and lodged with AUSTRAC within three business days, with guidance on the tipping-off prohibition - Training policy — content, frequency, and records for AML/CTF training across all agents and staff - Record retention — how CDD files and programme versions are retained for seven years

What Must Part B Cover for Real Estate Agents?

Part B specifies operational procedures for identifying and verifying clients. For real estate agencies, Part B must address: - Client identification and verification — the information and documents collected from individuals and entities such as companies and trusts - Beneficial ownership — how the agency identifies the natural persons who ultimately own or control entity buyers, including layered trust and company structures - PEP and sanctions screening — at onboarding and at risk-appropriate intervals thereafter - Enhanced due diligence (EDD) — additional steps for high-risk clients connected to high-risk jurisdictions or complex ownership structures - Non-face-to-face procedures — additional measures for remote or interstate buyers who cannot be verified in person

Who Must Approve the Programme?

The programme must be approved by the principal or licensee-in-charge, documented through a signed cover page, resolution, or formal minutes. An unapproved draft does not satisfy the obligation. AUSTRAC expects a version history tracking when each version was adopted and who signed it off. The AMLify real estate agent module includes a guided programme builder with version control and approval tracking.

Key Takeaways

• The programme is mandatory for agencies selling or purchasing property on behalf of clients — property management and valuations are not designated services
• Part A covers governance — ML/TF risk assessment, AMLCO appointment, customer acceptance policy, SMR procedures, training, and record retention
• Part B covers CDD procedures — client identification, identity verification, beneficial ownership mapping, PEP and sanctions screening, and EDD for higher-risk clients
• The programme must be approved by the principal or licensee-in-charge and version-controlled — an unapproved draft does not satisfy the obligation
• Get compliant now — real estate agencies should prioritise finalising and approving their programme before the 1 July 2026 commencement date

Frequently Asked Questions

Q: Do small single-agent real estate businesses need a full AML/CTF Programme?

Yes. The AML/CTF Act 2006 applies to reporting entities by the services they provide, not by firm size. A sole licensee conducting residential property sales has the same programme obligation as a large multi-office agency. The programme can be proportionate in length for a smaller operation, but Part A and Part B must both be present, approved, and operational from 1 July 2026.

Q: Can an agency use a real estate industry association template for its programme?

Templates from peak bodies such as the Real Estate Institute of Australia or state equivalents are a useful structural reference. However, the programme must reflect your agency's specific client mix, transaction types, and delivery channels. An unmodified template does not satisfy the obligation — customise it to your agency, have the customised version reviewed by the AMLCO, and obtain written principal approval before the deadline.

Q: What are the penalties for operating without a programme from 1 July 2026?

Providing a designated service without an adopted AML/CTF Programme is a contravention of the AML/CTF Act 2006. Civil penalties can reach $18.5 million per contravention for a corporate entity. Each client onboarded and each reportable matter missed without a compliant programme is a separate potential contravention. Real estate has been consistently identified by AUSTRAC as a high-risk sector for money laundering.

Q: How often must the AML/CTF Programme be reviewed?

The programme must be reviewed whenever material circumstances change — a new designated service, a significant shift in client mix or transaction volume, a new AMLCO appointment, or a change in FATF risk classifications affecting jurisdictions relevant to your clients. Beyond trigger-based reviews, an annual desktop review with written principal sign-off is best practice.

This is general information only and not a substitute for legal advice.

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