If you’re a property developer in Australia, new legislation means that from 1 July 2026, you’ll have formal obligations under Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime. We’re not lawyers, so this is not legal advice. If you’re not already prepared for this with advice from your lawyers, you need to get advice ASAP so you’re ready.
Here’s a plain-English overview of what we understand to be the key points.
What Is This?
The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth) received Royal Assent on 10 December 2024. It expands Australia’s existing AML/CTF regime — which previously applied mainly to banks and financial institutions — to a range of new industries, including property developers, real estate agents, lawyers, accountants, and others. These new entities are referred to as “Tranche 2” reporting entities.
The driver is straightforward: real estate has been identified as a significant money laundering channel in Australia. High-value, single transactions make property an attractive vehicle for moving and concealing illicit funds. The reforms bring Australia into alignment with international standards set by the Financial Action Task Force (FATF).
Does This Apply to You?
The obligations apply to property developers who sell real estate directly to customers without using an independent real estate agent – for example, developers with in-house sales staff selling direct to buyers.
If you use an independent licensed agent for all your sales, the agent may be the reporting entity rather than you. However, where you have any direct sales activity – including selling to buyers through your own network – it’s likely you’ll be captured.
AUSTRAC has published an online tool to help you check if your business may be regulated, which is a useful starting point. However, the specifics of your business structure, sales model, and entity arrangements will determine your actual obligations – which is why legal advice is important.
What Will You Need to Do?
Based on current AUSTRAC guidance, Tranche 2 entities will be required to:
- Enrol with AUSTRAC — the enrolment portal opens 31 March 2026, with enrolment required no later than 28 April 2026. You cannot enrol before 31 March 2026.
- Develop an AML/CTF Program — this includes conducting a business-wide risk assessment, and developing written policies, procedures, and controls to identify and manage money laundering and terrorism financing risks.
- Appoint a Compliance Officer — a designated internal person responsible for overseeing AML/CTF compliance.
- Conduct Customer Due Diligence (CDD) — this means verifying the identity of your customers, understanding beneficial ownership, identifying politically exposed persons (PEPs), and understanding the source and purpose of funds in each transaction.
- Ongoing monitoring — continuing to monitor customer transactions for suspicious activity throughout the relationship.
- Report to AUSTRAC — including submitting Suspicious Matter Reports where required.
- Maintain records — transaction and verification records must be retained for seven years.
- Train your staff — personnel need to be trained to identify and respond to AML/CTF risks.
Key Dates
Date | Milestone |
Already passed | Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 received Royal Assent (10 December 2024) |
January 2026 | Sector-specific AUSTRAC guidance expected to be released |
31 March 2026 | AUSTRAC enrolment portal opens for Tranche 2 entities |
28 April 2026 | Enrolment deadline |
1 July 2026 | Full AML/CTF obligations commence |
What Are the Consequences of Non-Compliance?
Significant. Penalties for corporate entities can reach up to 100,000 penalty units — currently equating to millions of dollars. Beyond financial penalties, non-compliance exposes your business to reputational risk and potential disruption to your operations and transactions.
What Should You Do Now?
The 1 July 2026 deadline sounds like it’s a comfortable distance away — but developing an AML/CTF program, conducting a risk assessment, training staff, and establishing compliant KYC and record-keeping procedures takes time. The businesses that will struggle are the ones that leave this to the last minute.
Talk to your solicitor now about whether and how these obligations apply to your specific business and sales model. Beyond that:
- Start thinking about who internally will own AML/CTF compliance – the Compliance Officer role needs to be assigned.
- Review your sales process and consider where customer due diligence steps will need to be built in.
- Keep an eye on AUSTRAC’s guidance as it’s released – their AML/CTF Reform hub is the best place to stay across developments.
Useful Links
- Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024
- AUSTRAC AML/CTF Reform Hub
- AUSTRAC — Summary of Obligations for Tranche 2 Entities
- AUSTRAC — Check If You May Be Regulated
- Department of Home Affairs — Overview of the AML/CTF Amendment Act
This article is for general information purposes only and does not constitute legal or compliance advice. The AML/CTF regime is complex and your obligations will depend on your specific business structure and activities. STAC Capital is a finance brokerage and is not qualified to provide legal advice. We strongly recommend you seek independent legal advice regarding your obligations under the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024.
