From 1 July, Australia begins rolling out major updates to its Anti‑Money Laundering and Counter‑Terrorism Financing (AML/CTF) laws, and for the first time, the real estate sector is included. These reforms are part of a national effort to close gaps in the financial system and better protect communities from organised crime.
While the changes introduce new compliance requirements for real estate agencies, the goal is simple: make property transactions safer, more transparent, and more secure for everyone involved.
Why the laws are changing
Real estate has long been recognised as a high‑risk area for money laundering, both in Australia and internationally. Criminals can use property purchases to hide or move illicit funds. The updated laws expand AML/CTF regulation to industries like real estate professionals, lawyers, accountants, and trust service providers, ensuring these high‑risk services are monitored more closely.
By strengthening oversight, Australia aligns more closely with global standards set by the Financial Action Task Force (FATF), the international body that sets rules for combating financial crime.
What this means for real estate transactions
From July 1, real estate agencies must adopt new obligations, including:
- Client identification and verification
- Risk assessments for unusual or high‑risk transactions
- Reporting obligations to AUSTRAC where suspicious activity is detected
These measures are designed to be risk‑based and outcomes‑focused, replacing older “tick‑box” approaches with smarter, more flexible compliance systems.
How clients benefit
Although these reforms are regulatory in nature, they deliver several direct advantages to buyers, sellers, and investors:
- Greater protection from fraud and financial crime
Enhanced checks make it harder for criminal activity to infiltrate the property market, protecting the integrity of your transaction. - A more transparent property market
Stronger oversight helps ensure that property values and market activity reflect genuine demand, not hidden criminal funds. - Reduced settlement risks
By identifying suspicious behaviour early, the new system helps prevent deals from collapsing unexpectedly due to compliance issues. - Stronger trust in your real estate agency
Agencies that comply with AML/CTF obligations demonstrate professionalism, accountability, and a commitment to client safety. - Alignment with global best practice
Australia is catching up with countries where real estate AML/CTF rules have long been standard. This gives international buyers and investors greater confidence in the Australian market.
What Morton is doing
At Morton, we have prepared for these changes by strengthening our internal systems, training our teams, and ensuring our processes meet the new standards. Our goal is to make the transition seamless for clients while maintaining the high level of service you expect.