AUSTRAC Real Estate Town Hall — 19 November 2025
AUSTRAC's first-ever town hall for real estate professionals. Hosted by CEO Brendan Thomas and Deputy CEO Katie Miller. This article summarises the key content from that session.
The money laundering environment in Australia
Of the total direct costs of serious and organised crime, the top three costliest were illicit drugs, financial crime, and illicit commodities. Most criminal acts leave a financial trail.
$82b
Total cost of serious and organised crime
2023–24, Australia
$19b
Illicit drugs
39% of top 3 costs
$13b
Organised financial crime
27% of top 3 costs
$8b
Illicit commodities
tobacco, cyber, firearms, IP
Source: Cost of serious and organised crime report (AIC), in billions of AUS dollars.
$1.2b+
In criminal assets restrained by the Australian Federal Police (AFP) since 2020
65%
Of those restrained assets was residential and commercial real estate ($790M+)
National Risk Assessment — real estate sector
AUSTRAC's national risk assessment found the real estate sector poses a high risk of money laundering in Australia.
Property can be negatively geared, generate income and deliver strong investment returns for investors and criminals alike.
Criminal networks can buy property to use as 'supply houses' — where they grow, make or distribute illegal drugs.
Property can absorb very large amounts of money in a single transaction, making it a fast and efficient way to clean proceeds of crime.
Property transactions often involve multiple parties — buyers, sellers, agents, conveyancers, lawyers. Complexity is attractive to criminals and creates an opportunity to hide in plain sight.
The AML/CTF reforms
On 29 November 2024, the AML/CTF Amendment Act 2024 passed parliament — to deter, detect and disrupt ML/TF and align Australia's laws with Financial Action Task Force (FATF) international standards.
Almost every other country already regulates real estate under their AML laws. Australia has been an international outlier. The FATF mutual evaluation of Australia is scheduled for 2026.
Increase scope of regulation
Expands to high-risk services provided by real estate professionals, lawyers, accountants, conveyancers, and precious metals dealers
Adjust obligations for current entities
Updated, risk-based, outcomes-focused obligations for all existing reporting entities
Align with global standards
Positions Australia ahead of the FATF mutual evaluation. Comparable to the UK, NZ, and most countries already covering real estate.
Case study — how a transaction looks
AUSTRAC presented this flow showing how funds move through a typical real estate money laundering transaction — and why no single party has the full picture.
Buyer
Provides $200,000 cash deposit
Real Estate Agent
Receives cash. Currently no obligation to verify source.
Real Estate Trust Account
Receives $400,000 in transfers from 3 separate entities within 2 weeks — all referencing the same property
↔ Two weeks between first deposit and last transfer
What's suspicious
- •Large cash deposit is unusual
- •Bank has no visibility — deposit went direct to agent
- •Multiple third-party transfers all referencing the same property
- •No due diligence on source of funds conducted
Who sees what in a transaction
VASP (Virtual Asset Service Provider) / Crypto
Cryptocurrency conversion — but not where it goes next
Vendor's & buyer's bank
Transactions with other parties. If providing a mortgage, significant due diligence on the buyer.
Banks hosting trust accounts
Deposit and settlement transactions vs other account activity — but not the identity of the underlying buyer/seller
Real estate agent
Works closely with vendor, runs inspections, collects deposit, transfers to conveyancer. Sees the buyer in person.
Conveyancer
Organises contracts, handles settlement of funds, transfers title. Closest to the controlling entities.
Designated services related to real estate
The Act regulates services, not job titles. If you provide any of these, you are a reporting entity.
| Description of service | Examples |
|---|---|
| Brokering the sale, purchase or transfer of real estate on behalf of a customer | Typical seller's and buyer's agent services |
| Selling or transferring real estate without an independent real estate agent | Property developers selling house and land packages, apartments off the plan, blocks of vacant land in new subdivisions |
| Assisting a person with planning or executing a transaction to buy, sell or transfer real estate — including acting on someone's behalf | Transfers resulting from a court or tribunal order are NOT covered — e.g. a lawyer transferring property from a deceased estate following court orders is excluded |
Property managers and auctioneers are not captured by the AML/CTF regime, unless they also provide the above services.
AML/CTF — Key obligations
Your six core obligations from 1 July 2026:
Enrol with AUSTRAC
Within 28 days of providing a designated service. Online enrolment opens 31 March 2026.
Develop and maintain an AML/CTF program
Written risk assessment + policies tailored to your business. Not a generic template.
Appoint an AML/CTF Compliance Officer
Fit and proper person at management level. The business principal can hold this role in small businesses.
Conduct initial and ongoing customer due diligence
Identify and verify customers and key ML/TF risk factors — before providing services and on an ongoing basis.
Report certain transactions and suspicious activities
SMRs within 24hr (terrorism) or 3 business days (other). Threshold Transaction Reports (TTRs) for $10,000+ cash. Annual compliance report.
Make and keep records
Complete records of CDD and compliance activity. Retained for at least 7 years.
Starter program kits & sector-specific guidance
AUSTRAC built free sector-specific starter programs in partnership with real estate peak bodies. Designed for typical low-complexity small businesses.
An AML/CTF program for a typical low-complexity small business
Ready-to-adapt — customise and implement. You don't start from scratch.
Insights into sector-wide ML/TF and proliferation financing risks
Built with industry bodies to reflect the real risks in real estate.
How to customise and implement the starter program:
1
Appoint specific staff
- •Governing Body
- •Compliance Officer
- •Senior Manager
- •Customer-facing staff
2
Customise the program
- •Review risk assessment
- •Add or remove risks
- •Update staff pack
3
Approve the program
- •Senior manager approves
- •Make and keep a record of approval
4
Establish systems, processes & controls
- •Implement the program
- •Determine what systems you will use
- •Establish processes to ensure program is followed
5
Ready to train your staff!
- •Train all staff on their responsibilities
AUSTRAC's regulatory expectations
AUSTRAC expects that, by 1 July 2026, you will:
Be enrolled — as a reporting entity. You will be able to access the online enrolment system from 31 March 2026
Have an AML/CTF program — either because you have adopted the starter program or have developed your own
Have an AML/CTF Compliance Officer
Have trained your staff — on your AML/CTF program and processes
Be ready — to ask clients questions and report suspicious activity
"We don't expect perfection, we expect progress."
— Katie Miller, Deputy CEO AUSTRAC
Timeline of support for the real estate sector
Aug 2025
Publication of AML/CTF Rules
Oct 2025
Publication of core guidance
Jan 2026
Finalisation of sector-specific guidance
31 Mar 2026
Enrolment opens
1 Jul 2026
AML/CTF obligations commence
29 Jul 2026
New reporting entities' enrolment deadline
Questions & Answers
Direct answers from Brendan Thomas and Katie Miller during the live Q&A session.
How long do I have to submit an SMR? Do I need to stop providing services?
+
Two timeframes: terrorism financing — 24 hours; all other matters — 3 business days from when suspicion is formed. You report suspicions — not proven wrongdoing. You do not need to stop providing services. Do not tell the customer you have filed a report.
Katie Miller — AUSTRAC
If a solicitor is involved, can I rely on their CDD instead of doing my own?
+
Only if you have a formal reliance arrangement with them — case-by-case or ongoing. Without that arrangement, you must do your own CDD regardless.
Katie Miller — AUSTRAC
Can I delegate the AML/CTF Compliance Officer role?
+
Yes. The principal of a small business can take on the CO role — no additional hire needed. You can also delegate to someone else at management level.
Brendan Thomas — AUSTRAC
Why does real estate need to be regulated if banks are already covered?
+
Because you see things banks cannot. The bank sees the funds transfer. You see the buyer in person — whether their story is consistent, whether something feels wrong. That information is invisible to every other part of the system. The national risk assessment also found real estate poses a very high ML risk independently.
Katie Miller — AUSTRAC
What are the red flags to watch for?
+
These are indicators only — not proof. (1) Transactions that are unusually large or complex — multiple layers (trust, company, multiple agents) are a way to hide money. (2) No apparent economic or lawful purpose — e.g. buys with a mortgage, pays it off quickly, resells quickly. (3) Transaction inconsistent with what you know about the customer — purchasing an expensive property when their income doesn't support it.
Katie Miller — AUSTRAC
Why hasn't the government provided the program for free?
+
AUSTRAC has built free sector-specific Starter Kits in partnership with real estate peak bodies specifically to address this. The goal is that small businesses can comply without hiring consultants. AUSTRAC commits to continuing to provide guidance as understanding of the sector grows.
Brendan Thomas — AUSTRAC
Disclaimer: Published by GetPost Labs Pty Ltd for educational purposes only. Not legal, financial, or compliance advice. Summary of publicly available AUSTRAC content — original: AUSTRAC Real Estate Town Hall, 19 November 2025. Refer to austrac.gov.au. Errors: sumit@getpostlabs.io