Property Development Sector
Property developers selling off-the-plan or facilitating settlement are reporting entities. Here's what you need to know before 1 July 2026.
From 1 July 2026, new AML/CTF compliance obligations (called Tranche 2) will apply to the Property Development Sector. AUSTRAC enrolment opens 31 March 2026.
The path to 1 July 2026 is defined by clear legislative and regulatory milestones
AML/CTF Amendment Act Passed
Nov 2024
Finalisation of AML/CTF Rules
Aug 2025
Core Guidance from AUSTRAC
Oct 2025
Sector-Specific Guidance for Real Estate
Early 2026
AUSTRAC Enrolment Opens
31 Mar 2026
Mandatory Compliance Commences
1 Jul 2026
The Australian real estate sector has been assessed as having a high money laundering risk. Professionals are viewed as critical gatekeepers.
These reforms are driven by
FATF Standards
The primary driver is the Financial Action Task Force (FATF), the global standard-setter for combating financial crime. Australia is a founding member and subject to its peer reviews.
2015 Evaluation Gap
Australia's 2015 FATF evaluation highlighted a key deficiency: the lack of regulation for "gatekeeper" professions like lawyers, accountants and real estate agents.
Criminal Exploitation
Criminals exploit these professional services to conceal illicit funds, hide beneficial ownership through complex structures and add a veneer of legality to the proceeds of crime.
Tranche 2 Reforms
The Tranche 2 reforms close this long-standing vulnerability, strengthening the integrity of Australia's financial system.
ML/TF/PF Risks in the Property Development Sector
The property development sector faces unique money laundering (ML), terrorism financing (TF) and proliferation financing (PF) risks. If an entity offers designated services, they will need to be aware of and assess the risks in relation to their business and services offered.
Identity Verification
Customer due diligence
Inadequate verification of customer identity leading to onboarding of high-risk clients.
Unusual Transactions
Transaction monitoring
Failure to detect structured payments or unusual transaction patterns.
Sanctions Exposure
Prohibited dealings
Risk of inadvertently dealing with sanctioned entities or persons.
Beneficial Ownership
Ownership opacity
Complex ownership structures obscuring the true beneficial owners of assets or entities.
Who May Be Captured?
The key trigger is designated services. Property developers selling directly to customers through in-house sales teams are likely to be captured. If you are unsure whether you are covered, please take advice.
Residential developers
House and land packages, apartments
Off-the-plan sellers
Pre-construction property sales
Land subdivision operators
Vacant land developments
In-house sales teams
Direct marketing without agents
Whether you are captured depends on the designated services you provide. If unsure whether you're covered, please seek legal advice. Even if you are not covered, you may consider implementing guardrails to ensure you don't accidentally cross lines.
Once you are a reporting entity, you have six fundamental compliance obligations
1. Enrol with AUSTRAC
Formally register your practice as a reporting entity.
2. Develop & Maintain an AML/CTF Program
Create a written, risk-based program tailored to your firm's specific ML/TF risks. This is the cornerstone of your compliance.
3. Conduct Customer Due Diligence (CDD)
Identify and verify your clients and their beneficial owners before providing a designated service, and monitor them on an ongoing basis.
4. Report to AUSTRAC
Submit Suspicious Matter Reports (SMRs) and Threshold Transaction Reports (TTRs) as required.
5. Keep Records
Maintain all relevant records of CDD, transactions and your AML/CTF program for prescribed periods.
6. Appoint an AML/CTF Compliance Officer
Designate a senior individual responsible for the oversight of your program.
Key AML/CTF Areas for Property Developers
Under Tranche 2, property developers with in-house sales teams face new obligations when selling property directly. Our documentation helps you navigate these requirements with confidence.
In-House Sales Compliance
Procedures for AML/CTF compliance when selling directly to purchasers through in-house sales teams.
Off-the-Plan Transactions
Specific controls for managing extended settlement periods, deposit verification and ongoing monitoring.
Purchaser Identity Verification
Initial and ongoing customer due diligence (CDD), including electronic verification methods and document requirements.
Source of Funds Enquiries
Procedures for verifying the source and legitimacy of funds for property purchases.
Beneficial Ownership Records
Requirements for identifying and verifying beneficial owners of purchasing entities.
Suspicious Matter Reporting
Workflows for identifying, escalating and reporting suspicious matters to AUSTRAC.
Compliance Officer Duties
Appointment requirements, role description and ongoing responsibilities for AML/CTF compliance.
Building an AML Program
Building an AML/CTF program for a property developer requires multiple steps.
- AML/CTF program framework for property developers
- Risk assessment worksheet (ML/TF/PF risks)
- Purchaser identification and verification procedures
- Off-the-plan transaction compliance workflows
- Source of funds enquiry procedures
- Suspicious matter reporting procedures
- Staff Training Register for tracking completion
- Compliance officer role description
Ready to Get Started?
We can help you get a headstart on your AML/CTF program. Program packs from $249, licensed to you permanently. Portal is free with managed CDD, or run your own CDD on BYO-API plans from $20/month.
A HeadStart on Compliance
Sector-specific compliance documents to help you build your AML/CTF program.
Ready-to-Customise Resources
Lawyer-ready to review for your business.
Training & Record-Keeping
Staff Training Register, Compliance Officer appointment documents and portal-based training record-keeping.
From $249 inc GST · or bring your own program
HeadStart Docs™ products are developed with reference to publicly available regulatory guidance. This is general information only and does not constitute legal or professional advice. You should seek advice specific to your circumstances before making compliance decisions.