Australia's economy continues to be exploited by serious and organised crime. These criminals exploit services provided by legitimate businesses to help disguise the illicit origins of their funds. Laundered funds are reinvested in further criminal activity, including child exploitation, drug and sex trafficking, scams, fraud, terrorism and the proliferation of weapons of mass destruction.
AUSTRAC’s Money Laundering in Australia National Risk Assessment 2024 (ML NRA) identified that businesses are regularly exploited by money laundering networks. These networks use business’ services to disguise the criminal origins of their funds and reinvest them in further criminal activity.
The ML NRA identified persistent exploitation of:
- channels historically used to launder funds, including banks, remitters and casinos
- high-value assets such as luxury watches, precious stones and real estate
- services provided by professional service providers to help establish complex business structures and associated banking arrangements that criminals use to launder and conceal proceeds of crime.
The ML NRA also found that:
- domestic real estate generated a very high risk of money laundering, while real estate agents posed a medium risk, noting that the real estate sector is a widely exploited asset type for money laundering in Australia
- luxury goods such as jewellery pose a high risk of money laundering, as they are an effective and low-cost channel to store and transfer criminal proceeds
- lawyers and accountants, along with companies and legal structures, pose a high risk of money laundering, as they can facilitate money laundering by obfuscating the source of illicit funds and beneficial ownership
- cash continues to pose a very high risk of money laundering, remaining a mainstay of money laundering in Australia and abroad.
To keep up with an ever-changing criminal environment, the Australian Government has recently reformed Australia's Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).
Australia's anti-money laundering and counter-terrorism financing (AML/CTF) regime includes the AML/CTF Act, the Anti-Money Laundering and Counter-Terrorism Financing Rules 2007 (the Rules) and associated regulations. It is a central part of their efforts to prevent criminals from enjoying the profits of their illegal activity and stopping funds from falling into the hands of terrorists.
On 29 November 2024, the Parliament of Australia passed the AML/CTF Amendment Bill 2024 (the Bill), amending the AML/CTF Act. The new laws reform Australia's AML/CTF regime to ensure it continues to effectively deter, detect and disrupt money laundering, terrorism financing and proliferation financing. They also ensure these laws meet international standards set by the Financial Action Task Force, the global financial crime watchdog and standard-setter.
Key changes under the new laws
Regulation of high-risk services
The new laws will expand AUSTRAC’s regulation into new industries that are recognised domestically and globally as high-risk for money laundering exploitation.
This includes certain designated services that are typically provided by the following businesses (Tranche 2 businesses):
- real estate professionals
- dealers in precious stones, metals and product
- professional service providers such as lawyers, conveyancers, accountants, and trust and company service providers.
These new laws will not apply until 1 July 2026 for tranche two entities that provide new designated services. These entities will be able to enrol with AUSTRAC from 31 March 2026. This is to allow time for newly regulated entities to understand and prepare for their new AML/CTF obligations.
Once your business is registered, you are a ‘reporting entity’ and you need to be ready to keep up with your obligations under the Act. This means:
- Developing a written AML/CTF program to manage compliance or using a compliance software program such as AgentSafe (modifications to the software are scheduled for implementation in June 2025).
- Carrying out risk assessments (using manual processes or software).
- Appointing a compliance officer.
- Collecting and verifying key client details before providing services – often referred to as ‘know your customer’ (KYC) information. This can mean taking verified copies of documents or using a credit-reporting body (CRB) to find and verify details.
Note: For identity verification procedures (applicable to NSW agents) refer to pages 19 and 20 of the Supervision Guidelines.
- Reporting certain types of transaction – those over a certain monetary threshold, international transfers, information about carrying or shipping physical currency and any suspicious transactions or interactions.
- Keeping and securely storing records showing your AML/CTF activity.
- Submitting compliance reports if requested.
- Paying an industry levy if your business earns over a certain threshold.
* It is also important to highlight when collecting and evaluating for potential money laundering or terrorist financing risks, that the due diligence process includes the usual safety checks to protect the health, safety and welfare of all workers and visitors who could be put at risk.Therefore, extra caution should be exercised with regard to a reporting entities obligations under the AML/CTF Act. For example, it's a well known fact, that any criminal activity on a property can make them hazardous, such as drug manufacturing or growing hydroponic cannabis can lead to accidents like fires or explosions. Owners should be made to fill out a checklist about the compliance and safety of their property and to remove any indication of suspicious activity before entering the property for inspection.
AgentSafe for Real Estate is now consulting with software developers and AUSTRAC on the inclusion of the following customer due diligence measures, that a reporting entity will be required to undertake during the sales process;
- AML/CTF Seller Due Diligence Measures Undertaken
- AML/CTF Buyer Due Diligence Measures Undertaken
- Compliance reporting - including access to AUSTRAC's online portal for reporting certain transactions and any suspicious activity.
AgentSafe for Real Estate will prepare a roll out of the additional features in mid June or July of 2025 to ensure users are able to successfully comply with AML/CTF legislation.
If you require any further information on the new reforms go to this page .
Important dates
Key upcoming dates related to the reforms:
2024/25:
- 29 November 2024: Passage of the AML/CTF Amendment Bill
- 10 December 2024: AML/CTF Amendment Act receives Royal Assent
- November 2024 to May 2025: Consultation on AML/CTF Rules
- 11 December 2024 to 14 February 2025: First exposure draft consultation on AML/CTF Rules
- 7 January 2025: Repeal of Financial Transaction Reports Act 1988
- 31 March 2025: Commencement of changes to the tipping off offence
- May to July 2025: Public consultation on draft core guidance
- June 2025: Finalisation of AML/CTF Rules
- August 2025: Finalisation of Core Guidance
- December 2025: Finalisation of Tranche 2 sector-specific guidance
2026:
- 31 March 2026: Changes to obligations to Tranche 1 reporting entities and virtual assets service providers
- 1 July 2026: AML/CTF obligations commence for Tranche 2 entities
- 2026: Ongoing enhancements to the Tranche 1 sector-specific guidance in partnership with industry
Post 2026:
- International value transfer service reporting will commence under transitional arrangements (previously referred to as ‘international funds transfer instruction’ reporting).