New AML/CTF rules reflect REIA’s successful advocacy for real estate sector
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Photo by Tembela Bohle
The Australian real estate industry is gearing up for significant changes following the recent tabling of the final Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Rules in Parliament. These new regulations incorporate pivotal recommendations from the Real Estate Institute of Australia (REIA) and various State and Territory Real Estate Institutes, reflecting their sustained advocacy efforts.
Scott Rollason, CEO of the REIA, expressed satisfaction with the outcome. “Notably, the Rules allow for delayed customer due diligence on buyers and a more practical approach to reliance, allowing real estate agents to rely on conveyancer due diligence in certain circumstances. These changes will significantly reduce administrative burdens and AML compliance costs for sellers,” Rollason stated. This adjustment is expected to ease the compliance load on real estate agents, who have long been burdened by the complexities of AML procedures.
One of the significant victories for the REIA was the removal of a proposed requirement that would have made the settlement of a sale contingent upon the completion of initial customer due diligence. Rollason highlighted this as a critical win, noting, “Acting on REIA’s recommendation AUSTRAC also carved out the proposed requirement under the delayed customer due diligence provision that the settlement of the sale be conditional on completion of initial customer due diligence.”
The REIA is keen to ensure that these changes translate into practical benefits for real estate agencies. “REIA is pleased to see our advocacy reflected in AML/CTF Rules. These practical adjustments will make a real difference to agencies on the ground and go some way in reducing duplication across the real estate transaction,” Rollason added.
To assist the industry in navigating these changes, the REIA has partnered with First AML, a leading provider of regulatory technology solutions. This collaboration aims to provide real estate agents with the tools needed to meet compliance requirements seamlessly. Rollason emphasised the importance of this partnership, stating, “To support the industry through this transition, REIA has partnered with First AML, a leading provider of regulatory technology solutions. First AML’s all-in-one AML/KYC platform will assist members in meeting compliance requirements through seamless system integration.”
Milan Cooper, CEO of First AML, echoed this sentiment, highlighting the collaborative efforts between his company and the REIA. “The tabling of the AML/CTF Rules marks the final piece of the legislative framework puzzle. We have worked closely with REIA throughout the Rules Consultation phase to ensure our platform delivers simplified AML compliance in the Australian context and helps real estate professionals meet their obligations efficiently while delivering a smooth experience for clients,” Cooper remarked.
As the real estate sector prepares for these changes, the REIA and State and Territory Real Estate Institutes are committed to rolling out implementation communication in the coming months. This will coincide with the finalisation of AUSTRAC Guidance, which is expected to provide further clarity on compliance expectations.
Key upcoming dates for the industry include the release of AUSTRAC Core Guidance in October 2025, followed by Industry Specific Guidance, including Small Business Starter Kits, in December 2025. The full AML/CTF obligations for Tranche 2 entities, which include real estate professionals, will come into effect on 1 July 2026.
First AML, which has been providing AML solutions to the real estate industry in New Zealand and the UK for the past six years, is poised to play a crucial role in this transition. Their end-to-end solution is designed to ensure compliance while offering an easy experience for clients. Cooper encourages businesses to engage with First AML to prepare for the upcoming legislation, indicating their readiness to support the industry through these changes.
As the real estate sector braces for the implementation of these new rules, the combined efforts of the REIA, State and Territory Real Estate Institutes, and First AML are set to provide a robust framework to ensure compliance while minimising the impact on day-to-day operations. The successful advocacy by the REIA and its partners marks a significant step forward in aligning regulatory requirements with the practical needs of the industry.