AML/CTF Guide for Real Estate Professionals in Australia

Part 1

When AML/CTF May Apply

The regulated work centres on brokering—acting as intermediary or agent for consideration—the sale, purchase or transfer of real estate for a party, and direct business sales or transfers where no independent real estate agent brokers the transaction.

• Brokering the sale, purchase or transfer of real estate on behalf of a buyer, seller, transferee or transferor in the course of business.
• Selling or transferring real estate in the course of a business selling real estate, where the sale or transfer is not brokered by an independent real estate agent.
• Another designated service provided alongside the real-estate work.

Part 2

Main Risks in This Sector

These are starting points, not a ready-made risk rating. The business still needs to assess its own customers, services, countries, channels, transactions and technology.

• Real estate can store and move large amounts of criminal wealth.
• Companies, trusts, nominees or family members can hide the true buyer or seller.
• Third-party deposits and overseas funding can obscure source and control.
• Rapid resale, unexplained price changes and unusual settlement terms can move value.
• Remote customers, an uncooperative statutory customer and pressure to move quickly can weaken checks.

Part 3

A Practical Control Plan

1. Step 1

   Confirm scope

   Map sales, buyer representation, development sales, leasing and property management separately.

2. Step 2

   Build the customer process

   For brokering, both the buyer/transferee and seller/transferor are customers. Delayed or deemed CDD for the party not represented is available only on AUSTRAC’s stated conditions. Where delayed CDD is available, complete it within 28 days after exchange of contracts or at least 3 days before the initially agreed settlement date, whichever is earlier.

3. Step 3

   Set the risk controls

   Set rules for trusts, companies, third-party deposits, overseas parties and the other statutory customer.

4. Step 4

   Train and connect people

   Train agents to recognise suspicious behaviour and escalate without tipping off.

5. Step 5

   Test and improve

   Review listings and sales across branches to check that the same rules are applied.

Part 4

Worked Examples

These examples show how the scope and risk questions can be joined. They do not replace the law or the facts of a real matter.

Part 5

Evidence That Should Be Easy to Find

• The designated-service and geographical-link analysis.
• The current sector risk assessment and the official sources used.
• A service map covering sales, development, leasing and management.
• CDD and risk records linked to the property and transaction.
• Records of third-party deposits, ownership and source checks.
• Branch monitoring for linked customers, properties and suspicious patterns.
• Customer, beneficial ownership, risk, monitoring and reporting records.
• Training, internal review, independent assurance and remediation records.

Part 6

Common Mistakes

• Treating every property service as regulated or none of them as regulated.
• Identifying a company but not the individuals behind it.
• Waiting until exchange or settlement to begin checks.
• Treating the other statutory customer as only a counterparty.
• Keeping suspicious information in widely accessible sales notes.