From 1 July 2026, Australian property developers will face new obligations under the anti-money laundering and counter-terrorism financing (AML/CTF) regime as ‘tranche 2 entities’.
In 2026, a number of changes will be made to the anti-money laundering and counter-terrorism financing (“AML/CTF”) regime. These changes include the expansion of the AML/CTF regime to include a number of new entities, including lawyers, accountants, conveyancers, real estate agents, and property developers. These entities are referred to as ‘tranche 2 entities’ and, from 1 July 2026, will be required to comply with a range of obligations under the AML/CTF Act and AML/CTF Rules.
I am a property developer. Am I a tranche 2 entity?
You are a tranche 2 entity if you will provide one or more of the new ‘designated services’ being added to section 6 of the AML/CTF Act from 1 July 2026. These designated services include:
“selling or transferring real estate in the course of carrying on a business selling real estate, where the sale or transfer is not brokered by an independent real estate agent”
You are therefore likely to be a tranche 2 entity if you carry on a business of developing and selling real estate (for example, house and land packages, apartments off the plan, or blocks of vacant land in new subdivisions), including where you use your own in-house real estate agents rather than engaging an external agency.
What next?
From 1 July 2026, property developers providing these services will become reporting entities under the AML/CTF regime. This means that they will be required to:
Enrol with AUSTRAC within 28 days of providing a designated service
Develop and implement an AML/CTF Program tailored to their business and risk exposure
Appoint an AML/CTF Compliance Officer to oversee day-to-day compliance with the AML/CTF Program
Establish customer due diligence, suspicious matter reporting and record-keeping systems and procedures
Ensure that staff are adequately trained on their AML/CTF Program
Proactive preparation will help ensure that you are ready to meet your obligations ahead of 1 July 2026 to avoid any disruptions to your business. The development and implementation of an AML/CTF Program should not be left to the last minute.
If you have any questions about the upcoming changes, or require any assistance, please get in touch with Cowell Clarke’s Financial Services and AML/CTF team at Compliance@CowellClarke.com.au.
We’d like to thank Ivanna Tan for her contribution to this insight.
This publication has been prepared for general guidance on matters of interest only and does not constitute professional legal advice. You should not act upon the information contained in this publication without obtaining specific professional legal advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication and to the extent permitted by law, Cowell Clarke does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting or refraining to act in relation on the information contained in this publication or for any decision based on it.