What an agency actually has to do under AUSTRAC Tranche 2

Is your agency a reporting entity?

If your real estate business provides a designated service with a geographical link to Australia, it has AML/CTF obligations. AUSTRAC says this includes brokering the sale, purchase or transfer of real estate as part of a business. Both the seller and buyer can be customers of the same reporting entity.

• Seller’s and buyer’s agents: brokering a sale, purchase or transfer of real estate is a designated service.
• Developers and other sellers: selling or transferring real estate without an independent real estate agent, as part of a business selling real estate, can also be a designated service.
• Property management:AUSTRAC’s real-estate guidance focuses on brokering a sale, purchase or transfer. Check current guidance for the actual services your business provides rather than relying on a blanket label.

Who in the agency is responsible?

The reporting entity has the obligations, but it must appoint an eligible AML/CTF Compliance Officer to oversee and coordinate day-to-day compliance.

1. Role 01
   The reporting entity

   The business must enrol, maintain an AML/CTF program, keep required records and make required reports. Its legal structure alone does not answer whether its services are in scope.

2. Role 02
   AML/CTF Compliance Officer

   The officer must be at management level, fit and proper, and generally resident in Australia where services are provided through an Australian establishment. For a small business, this may be an owner or director; it does not have to be a new full-time employee.

3. Role 03
   Sales agents and staff

   Staff need role-appropriate training to follow the program, recognise red flags, gather required information and escalate concerns without tipping off a customer.

Your obligations, in plain terms

1. Obligation 01
   Enrol with AUSTRAC

   AUSTRAC set 29 July 2026 as the transition enrolment date for newly regulated businesses that began providing designated services from 1 July 2026. The general enrolment rule is within 28 days of starting a designated service — check current AUSTRAC guidance for your circumstances.

2. Obligation 02
   Maintain an AML/CTF program

   Maintain a documented program that identifies and manages the risks from your services, customers, channels and locations. It should cover controls, governance and staff training.

3. Obligation 03
   Customer due diligence

   Collect and verify required customer and beneficial-owner information at the right time for the service. AUSTRAC has limited delayed CDD rules for defined real-estate cases; they depend on your role, risk assessment and documented policies, not a general exemption.

4. Obligation 04
   Monitor and report

   Report suspicious matters through AUSTRAC Online within 24 hours for terrorism-financing suspicions, or within 3 business days for other suspicions. A TTR is required for a transfer of $10,000 or more in physical currency and is due within 10 business days. Do not tip off the customer.

5. Obligation 05
   Keep records

   Keep records of CDD, risk assessments, transactions and program decisions. Most relevant records have a 7-year retention period, but the exact requirement depends on the record type.

6. Obligation 06
   Train your team

   Give staff role-appropriate AML/CTF training so they can follow your program and identify and escalate suspicious activity.

When CDD happens in a sale

The exact timing depends on whether you act for the seller or buyer. Do not use one generic sale workflow for every party.

1. Seller’s agent
   Seller agreement
   A seller’s agent starts providing a designated service to the seller when an agreement to broker the sale is signed. Complete initial CDD for the seller before starting that service.
2. Seller’s agent
   Buyer proceeds
   The service to the buyer starts when it is reasonably expected the transaction will proceed, typically when an offer has been accepted and the contract is signed. Limited delayed CDD may apply to the party you are not acting for under AUSTRAC’s real-estate rules.
3. Buyer’s agent
   Buyer engagement
   A buyer’s agent starts providing a designated service to the buyer when an agreement to find or identify a property is signed. The timing for the seller follows when the transaction is reasonably expected to proceed.
4. Auction and exceptions
   Use your documented policy
   AUSTRAC notes that CDD may sometimes be delayed where it is essential to avoid interrupting ordinary business and the additional risk is low. Check the current Rules and your documented AML/CTF policies before relying on a delay.

Higher-risk situations to review

Your program should identify the risks that are actually relevant to your business. Examples that may require closer review include complex ownership structures, PEPs, sanctions exposure, unusual funding arrangements and unexplained urgency.

• Companies, trusts and SMSFs: establish the relevant beneficial owners and understand the ownership or control structure.
• PEPs and sanctions: assess the risk and apply the required controls. Read our PEP and sanctions explainer.
• Unusual funds or third-party payments:investigate information that does not make sense for the customer or transaction and follow your escalation process.

Agency readiness checklist

Use this as a prompt for a proper review of your agency. It is not a legal or compliance assessment.

• I know which of our services are designated services.
• We have appointed an eligible AML/CTF Compliance Officer.
• We maintain an AML/CTF program based on our risk assessment.
• We understand the CDD timing for the parties we act for.
• We have a process to identify and escalate suspicious matters without tipping off the customer.
• We can identify threshold cash transactions and lodge a TTR within the required timeframe.
• We retain required records securely and can retrieve them.

Frequently asked questions

Sources and further reading