The DFAT criminal penalty most real estate agents have never heard of

Two parallel compliance regimes

Every real estate principal in Australia has heard, at some point in the past 12 months, that they need to be AUSTRAC-compliant by 1 July 2026. That is correct and important. But it is only half the picture.

There is a second compliance regime that applies to real estate transactions right now — not from 1 July, not after enrolment, but today, on every deal your agency touches. It is administered by the Department of Foreign Affairs and Trade (DFAT) under the Autonomous Sanctions Act 2011. Unlike AUSTRAC’s civil penalty regime, DFAT sanctions carry criminal penalties — including imprisonment.

Most principals have never heard of it.

What is the Autonomous Sanctions Act 2011?

The Autonomous Sanctions Act 2011 (Cth) gives the Australian Government power to impose targeted financial sanctions and travel bans on individuals and entities as a matter of foreign policy — typically in response to human rights abuses, corruption, regional security threats, or non-proliferation concerns.

These are not AUSTRAC obligations. AUSTRAC is Australia’s financial intelligence unit. DFAT is Australia’s foreign affairs department. They are separate agencies, separate legislation, and separate regulatory frameworks — but both can reach into a real estate transaction.

The sanctions are given effect through regulations made under the Act — such as the Autonomous Sanctions Regulations 2011 and country-specific regulations (Russia, Myanmar, Iran, Belarus, and others). The list of designated persons and entities is maintained in the DFAT Consolidated List.(Source: DFAT, “Autonomous Sanctions”, retrieved 23 May 2026)

The DFAT Consolidated List

The Consolidated List is a single searchable register of all individuals and entities currently subject to Australian autonomous sanctions. It is publicly available on the DFAT website and is updated regularly.

The list includes people and entities sanctioned in relation to:

• Russia (following the 2022 invasion of Ukraine)
• Belarus
• Iran (nuclear and human rights programmes)
• Myanmar (military coup)
• North Korea (weapons of mass destruction)
• Syria
• Zimbabwe
• Counter-terrorism listings
• Serious corruption and human rights abuse thematic listings

As of May 2026, the list contains thousands of entries and is growing. The Russian listing alone covers hundreds of oligarchs, government officials, and connected entities — some of whom have longstanding Australian property interests.(Source: DFAT Consolidated List, retrieved 23 May 2026)

The penalties: criminal, not civil

This is the critical distinction. AUSTRAC’s penalties are civil — financial penalties, enforceable undertakings, and court orders. The DFAT sanctions regime is criminal.

Critically, the DFAT criminal offence does not require intent. Facilitating a transaction involving a designated person — even unknowingly — can constitute an offence under the regulations. This is why pre-transaction screening is not optional.(Source: Autonomous Sanctions Act 2011, s9; Crimes Act 1914, s 4AA (penalty unit value), retrieved 23 May 2026)

How autonomous sanctions apply to real estate

If a designated person — someone on the DFAT Consolidated List — attempts to purchase, sell, or transfer real estate in Australia, and your agency facilitates that transaction, you may have committed an offence under the Autonomous Sanctions Act.

“Facilitate” is interpreted broadly. Acting as the selling agent, buyer’s agent, or property manager for a designated person can all bring your agency into scope. The relevant question is whether you made the transaction possible — not whether money passed directly through your hands.

The gap DFAT screening doesn’t close: PEPs

Searching the DFAT Consolidated List is necessary but not sufficient. The Consolidated List covers sanctioned persons — those whom Australia has specifically designated. It does not cover Politically Exposed Persons (PEPs).

A foreign government minister, their spouse, or a senior executive of a state-owned enterprise is not on the DFAT list unless they have been individually designated. But under AUSTRAC’s AML/CTF Rules, PEPs require Enhanced Customer Due Diligence regardless of whether they appear on any sanctions list.

A buyer who is the spouse of a sanctioned Russian oligarch may or may not appear on the DFAT list — it depends on whether they have been individually designated. But they will almost certainly be a PEP, triggering separate Enhanced Due Diligence obligations under the AML/CTF Act from 1 July 2026.

This is why the industry’s shorthand — “screen for sanctions” — understates the actual obligation. You need to screen for sanctions and PEPs as separate lookups against separate databases, using different criteria.

What to do in practice

For every buyer and vendor before a transaction is agreed:

• Check the DFAT Consolidated List — free, available on dfat.gov.au, searchable by name. Takes 30 seconds. Do it before you proceed, and retain a dated record of the search.
• Run a PEP check separately — PEPs will not appear on the DFAT Consolidated List unless they have been individually sanctioned. You need a separate PEP database check.
• Screen entities, not just individuals — if the buyer or vendor is a company, trust, or fund, search the entity name as well as the names of all directors and beneficial owners. Sanctioned individuals sometimes operate behind corporate structures.
• Document everything — record the date of the search, the search term used, and the result (no match / potential match / confirmed match). This is your evidence of due diligence if the question is ever asked.
• Know what to do on a match — if you get a potential match, do not proceed with the transaction until you have verified whether it is the same person. If it is a confirmed match, contact DFAT for guidance immediately. Do not tip off the client that a check has been run.

Sources & further reading