Record-Keeping for Real Estate Agents Under Tranche 2

Australian real estate agents facilitating the sale or purchase of property must keep client identification, transaction, and AML/CTF programme records for seven years under the AML/CTF Act 2006 -- and since Tranche 2 commenced on 1 July 2026, AUSTRAC can request them at any time.

What records must a real estate agency keep under Tranche 2?

The AML/CTF Act 2006 requires reporting entities to retain three categories of records: - Customer due diligence (CDD) records -- identity documents and verification results for buyers and sellers, plus beneficial ownership information where a company, trust, or SMSF is the purchaser - Transaction records -- the property, the parties, the sale price, and the source of settlement funds, including any third-party payment documentation - Programme and risk records -- the agency's AML/CTF programme, its ML/TF risk assessment, and evidence of staff training

How long must these records be kept?

Client identification and transaction records must be retained for seven years from the end of the client relationship or completion of the transaction, whichever is later. Programme documents, risk assessments, and training records must be kept for seven years from the date they stop being current. Destroying records early -- even a superseded CDD file after settlement -- is a contravention in its own right.

Where and how should records be stored?

AUSTRAC doesn't mandate a specific format, but records must be retrievable in a usable form on request, in English, and protected against unauthorised access or loss. A CDD file split across a CRM, a conveyancer's email thread, and a paper folder in a branch office makes it hard to prove completeness during an audit. A single, timestamped repository tied to each property transaction -- rather than reconstructed after the fact -- is the safer approach.

What happens if records are missing or incomplete?

Failing to keep required records is a separate contravention under the AML/CTF Act 2006, independent of whether any suspicious activity occurred. AUSTRAC can request records during routine supervision, not only an investigation, and gaps -- such as a third-party payment with no documented source -- are treated as evidence an agency's compliance programme isn't actually operating.

How does AMLify handle record-keeping for real estate agencies?

AMLify for real estate agents timestamps and retains every CDD document, verification result, third-party payment note, and training record automatically against the relevant property transaction, for the full seven-year period. When AUSTRAC or an auditor asks for a client's file, it's a single export rather than a search across inboxes and shared drives. See pricing to start a free trial.

Key Takeaways

• Seven-year retention applies to CDD records, transaction records, and AML/CTF programme documents
• The retention clock differs by record type -- from the end of the client relationship for CDD, from when a programme version stops being current for programme records
• Records must be retrievable and secure, not just stored -- files scattered across a CRM, email, and paper rarely survive an audit
• Missing records are a contravention on their own, regardless of whether suspicious activity occurred
• AMLify automates record retention against each property transaction -- see pricing for a free trial

Frequently Asked Questions

Q: Does the seven-year period start at contract signing or at settlement?

For CDD and transaction records, the seven years runs from the end of the client relationship or completion of the transaction, whichever is later -- typically settlement, not the date the contract was signed.

Q: Can an agency store AML/CTF records in its property management or CRM software?

Yes, provided the records stay retrievable, protected from unauthorised access or loss, and can be produced on request. Many agencies keep compliance records in a dedicated system specifically so they aren't buried or deleted during routine file management.

Q: Can an agency be penalised for losing records without an AUSTRAC investigation?

Yes. Failing to retain required records is a contravention of the AML/CTF Act 2006 in its own right, and AUSTRAC can identify the gap during routine supervision rather than only a targeted investigation.

Q: Do sole-agent or small agencies have a shorter record-keeping obligation?

No. The seven-year retention requirement applies to every reporting entity providing a designated real estate service, regardless of agency size.

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

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