Paper 1 — information for real estate professionals who are proposed to be brought under the AML/CTF regime

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This is an article of a series of articles explaining proposed measures to amend AML/CTF regime by the Attorney General’s Dept.

A key element of the reforms proposed by the Attorney General Dept is the inclusion of “tranche two” entities, which encompass real estate professionals alongside others, within the AML/CTF regime.

The paper provides a roadmap for implementation, detailing the steps businesses will need to take. This includes enrolling with AUSTRAC, developing a tailored AML/CTF program, conducting customer due diligence (both initial and ongoing), reporting specific transactions and suspicious activity, and maintaining accurate records.

Designated Services

The paper clarifies which real estate services will be included:

1. Brokering the sale or transfer of real property on behalf of sellers (acting as the seller’s customer).
2. Brokering the purchase or transfer of real property on behalf of buyers (acting as the buyer’s customer).
3. Selling real property directly, without a real estate agent (acting as the seller’s customer).

In response to industry concerns regarding regulatory burdens, the department is proposing to exclude services related to residential tenancies, property management, and commercial real estate leasing from these regulations. These services fall outside the scope of the Financial Action Task Force (FATF) Recommendations for designated non-financial businesses and professions.

Business Responsibilities

Real estate business will be required to:

1. Enroll with AUSTRAC.
2. Develop and maintain a comprehensive AML/CTF program specific to your company’s needs.
3. Conduct thorough initial customer due diligence.
4. Implement procedures for ongoing customer due diligence.
5. Report certain transactions and any suspicious activity identified.
6. Establish and maintain accurate records.