Why I May Need to Ask You Some Awkward Questions

No, I’m not being nosy – the law requires it.

From 1 July 2026, real estate agents will come under new Commonwealth Anti-Money Laundering and Counter-Terrorism Financing laws, commonly known as AML/CT Tranche 2.

In practical terms, this means I will be required to carry out “Know Your Customer” (KYC) due diligence, keep certain records, and report certain matters to AUSTRAC where the law requires it. AUSTRAC is the Australian Transaction Reports and Analysis Centre.

This is separate from the proof-of-identity checks agents already carry out under NSW requirements. The new regime is a Commonwealth obligation, and it goes beyond simply sighting identification.

As a result, agents may need to ask clients more questions about identity, ownership structures, source of funds, companies, trusts and related matters. If that sounds a little invasive, that’s because it is. It is not something agents have asked for, but it is something we are required to do.

MacDougall Rural Property is preparing for these obligations and has teamed up with a reputable service provider to help ensure our AML/CTF systems and procedures are in place.

For most genuine clients, this will simply be an extra administrative step — perhaps a little inconvenient, but nothing to be alarmed about. The aim is to help protect Australia’s property market from being misused for money laundering, terrorism financing and other criminal activity.

So, while there may be a little more paperwork than before, we will do our best to make the process as straightforward and sensible as possible.

If you would like to know more about AUSTRAC’s approach to regulating businesses, visit AUSTRAC’s website.

If you would like to speak to me about our approach to the new obligations, feel free to call me on 0412 220 302.

Best regards,

Graham MacDougall