AML/CTF Reform

Written By giulia dondoli

At the end of 2024, the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 (AML/CTF Bill) obtained Royal Assent, becoming law and amending the AML/CTF Act 2006.  

The AML/CTF Bill expands the scope of the AML/CTF Act to also cover certain high-risk services provided by real estate professionals. This post highlights some key amendments that will be relevant to you and your business.

New Designated Services

AML/CTF compliance will apply to you while carrying out designated services, which for real estate agents are as follows:

  • assisting a person in the planning or execution of a transaction, or otherwise acting for or on behalf of a person in a transaction:

    • to sell, buy or otherwise transfer real estate

    • to sell, buy or otherwise transfer a body corporate or legal arrangement

    • in relation to receiving, holding and controlling (including disbursing) or managing a person’s money, accounts, securities and securities accounts, virtual assets, or other property

    • for equity or debt financing relating to a body corporate or a legal arrangement

  • selling or transferring a shelf company

Risk Assessment

The AML/CTF Bill establishes a clear requirement for you to conduct a risk assessment.  For the risk assessment, you will need to consider risks relating to money laundering, terrorism financing and proliferation financing (ML/TF/PF), in particular relating to:

  • nature, size and complexity of your business;

  • kinds of designated services provided;

  • kinds of customers;

  • delivery channels;

  • jurisdictional exposure; and

  • information communicated either directly or indirectly by AUSTRAC.

You will need to document your risk assessment in writing.

AML/CTF Policies

Once assessed your risks, you must develop and maintain policies, procedures, systems and controls (AML/CTF policies). These AML/CTF policies should be documented in writing, and they should appropriately manage and mitigate your ML/TF/PF risks. Together, your risk assessment and your AML/CTF policies form your AML/CTF program.

Governance

The AML/CTF Bill includes an explicit requirement for you to establish the role of AML/CTF compliance officer, who must:

  • be a person employed or otherwise engaged by you at a management level;

  • have sufficient authority, independence and access to resources and information to ensure they can perform the functions of an AML/CTF compliance officer effectively;

  • reside in Australia (if you provide your services through a permanent establishment in Australia); and

  • be a fit and proper person.

What’s Next

These changes will enter into force on 1 July 2026, and AUSTRAC is working to develop updated AML/CTF Rules based on the AML/CTF Bill.

Don’t wait until 2026 to start making changes. Assess your business’s current AML/CTF framework and identify gaps now. Contact us today for expert assistance with risk assessments, AML/CTF policies, and training to ensure your business is ready for the new requirements.

 

giulia dondoli
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