Currently, AUSTRAC’s Tranche 2 reforms primarily target sales, purchases, and transfers of real estate. Residential leasing and property management services (where the term is less than 30 years) are generally out of scope.
Yes. The AML/CTF Compliance Officer must be a resident of Australia and at a management level within the business. In most NSW agencies, the Licensee-in-Charge is the most appropriate person for this role. You must notify AUSTRAC of this appointment within 14 days of it being made.
Yes. Under the 2026 reforms, for the purpose of a property transaction, both the buyer and the seller are considered your customers. You must conduct "Know Your Customer" (KYC) checks on both parties.
If your vendor or buyer is a company or a trust, you cannot just verify the entity. You must identify the Ultimate Beneficial Owner (UBO) - the natural person who ultimately owns or controls 25% or more of that entity. This is to ensure individuals aren't using "shell companies" to hide their identity during a property purchase.
You are required to lodge a Suspicious Matter Report (SMR) with AUSTRAC. You do not need "proof" of a crime; you only need a "reasonable suspicion."
Under the AML/CTF Act, you must keep all records relating to customer identification and transactions for seven (7) years. These records must be stored in a way that allows them to be audited by AUSTRAC if requested.
AUSTRAC has the power to issue significant financial penalties. For serious or systemic breaches, civil penalties can reach millions of dollars.