Anti-Money Laundering and Counter-Terrorism Financing
Real estate professionals must comply with new anti-money laundering and counter-terrorism financing obligations for designated services.
AML/CTF obligations for agents
Overview
From 1 July 2026, anti-money laundering and counter-terrorism financing (AML/CTF) obligations will apply to designated services typically provided by tranche 2 entities. Real estate professionals will be required to comply with key obligations to protect their businesses from misuse by criminals.
Understanding your obligations
The AML/CTF regulation will apply to real estate professionals who provide the following services:
- Real Estate Selling Agents and Buyer's Agents Acting on behalf of buyers or sellers to arrange the sale, purchase, or transfer of property as part of a business.
- Property Developers and Direct Sellers Selling or transferring property directly (without an independent agent) as part of a business—such as selling house-and-land packages, off-the-plan apartments, or land in new subdivisions.
The obligations will not apply to:
- residential tenancy agreements
- property management
- leasing of commercial real estate
- auctioneer services (unless the auctioning services are provided by the seller’s agent alongside the sale of the real estate).
As a professional, it's crucial to understand these obligations and ensure your business is fully compliant.
Key Dates for Compliance
Here's a timeline of the most important dates you need to be aware of:
- 31 March 2026: Enrolments opens for Tranche 2 entities.
- 1 July 2026: AML/CTF obligations commence for Tranche 2 entities.
To help you, we've prepared fact sheets for real estate agencies with a summary of information on the new obligations:
Additional information
AUSTRAC is currently delivering education and guidance to support businesses to ready themselves for the upcoming changes.
Latest guidance for the industry has been released:
To find out more about the AML/CTF regime, please view AUSTRAC's webinars at here.
To understand the upcoming guidance and resources provided by AUSTRAC, please view the webpage at here.
REIA x First AML partnership
To support the industry through this transition, REIA is also proud to announce our exclusive partnership with First AML, a leading provider of regulatory technology solutions. First AML's all-in-one AML/KYC platform will assist members in meeting compliance requirements through seamless system integration.
First AML has been delivering AML solutions to the Real Estate Industry in New Zealand and the UK for the past 6 years. First AML's end-to-end solution ensures Real Estate businesses stay compliant while providing an easy experience for clients. If you'd like to start a discussion on preparing your business for the upcoming AML legislation, please reach out to them directly or visit their website at here.
AML/CTF obligations for buyers and sellers
Overview
From 1 July 2026, anti-money laundering and counter-terrorism financing (AML/CTF) obligations will apply to designated services typically provided by tranche 2 entities. If you are purchasing or selling your home from the 1st July 2026, your real estate agent is obligated to perform a mandatory process called "Customer Due Diligence" (CDD) to verify your identity. This includes general checks such as the Know-Your-Customer (KYC) checks, source of wealth checks and background checks on sanctions and Politically Exposed Person (PEP) databases.
What this means for you as a home buyer or seller:
While the primary obligations fall on real estate businesses, your cooperation is essential. The new AML/CTF regulations are designed to protect you and the wider community. They help prevent real estate services from being used for illegal activities such as financial crime and terrorism.
- Customer Due Diligence: When you engage our services, you will be required to provide us with specific information to confirm your identity. This is a mandatory step under the new AML/CTF legislation.
- Enhanced Due Diligence: In some cases, we may be required to collect additional information. It's simply a requirement to ensure we meet our legal obligations.
- Record-Keeping: All information collected for AML/CTF purposes is handled in strict accordance with the Privacy Act and stored securely. It will only be used for the purposes of complying with our legal obligations.
