• Scenario 1 - Brokered transfer

  Provision of a designated service - brokering the sale, purchase or transfer of real estate on behalf of a buyer, seller, transferee or transferor in the course of carrying on a business.

  AUSTRAC Examples - Typical seller’s and buyer’s agent services.

  Customer of the designated service - both:

  (a) the seller or transferor; and

  (b) the buyer or transferee.

• Scenario 2 - Transfer without broker

  Provision of a designated service - 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.

  AUSTRAC Examples - Property developers and other businesses who sell house and land packages, apartments off the plan, and blocks of vacant land in new subdivisions.

  Customer of the designated service - the buyer or transferee.

While primarily aimed at capturing activities of real estate agents or others engaged in the sale and purchase or properties in the ordinary course, it is likely that some property developers may also be captured within the scope of this designated service. 

AUSTRAC has provided guidance on who it believes would be covered under each designated service, noting that Scenario 2 above, would likely capture some property developers. 

What services are likely to be captured?

It is important that developers carefully consider their own operations and obtain legal advice where necessary in respect of their specific circumstances to determine whether they may be required to comply AML/CTF obligations. Further guidance will also be released by AUSTRAC in due course. 

However, based on the current understanding of how the new designated services are expected to be applied, it is likely that the following example activities will be treated as set out below:

• Scenario 1 - In-house and agent sale

  Example service - A property developer has in house employees that sell their product (no licence) but also use channel agents to sell their lots.

  Likely application of AML/CTF obligations - Likely that the services performed by the in-house employees would be captured as a designated services and, accordingly, AML/CTF obligations would apply. 

• Scenario 2 - Agent and network sale

  Example service - A property developer has agents that sell their apartments but also sell apartments to their networks direct.

  Likely application of AML/CTF obligations - Likely that the sale of apartments directly to networks would be captured as a designated services.

• Scenario 3 - Agent-only sale

  Example service - A property developer only uses agents to sell their land.

  Likely application of AML/CTF obligations - Not captured and no need to comply with AML/CTF obligations.

In short, if a property developer holds an interest in a sales and marketing agreement or otherwise acts as an agent in the sale of property, it is likely that they will be providing a designated service and be required to comply with the AML/CTF Act. 

What AML/CTF obligations will apply?

If a property developer is providing such a ‘designated service’, they would be required, from 1 July 2026, to meet certain AML/CTF obligations.

These obligations include:

• enrolling and registering with AUSTRAC;
• developing and maintaining an AML/CTF program tailored to the business;
• appointing a fit and proper person as an AML/CTF compliance officer to oversee the AML/CTF program (notification to ASIC not required until 29 July 2026);
• conducting sufficient initial and ongoing customer due diligence;
• monitoring all transactions and activities, and reporting on certain transactions and suspicious activities that meet the requisite thresholds; and
• making and maintaining accurate and complete records for at least seven years.

Next Steps

Property developers should assess the services they provide and ascertain whether these align with the description of a ‘designated service’, particularly Scenario 2, above. 

If so, we strongly recommend property developers to seek legal advice as there are significant reporting and AML/CTF obligations for these entities, which property developers should ensure are in place and appropriately tested by 1 July 2026.

Failure to meet these obligations in time could result in significant civil penalties, including up to 100,000 penalty units for a body corporate.

^{[1] The laws are set out in the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AML/CTF Act).}

^{[2] These changes come in under the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth) (Amendment Act) which received Royal Assent on 10 December 2024.}

^{[3] Australian Transaction Reports and Analysis Centre (AUSTRAC) is the Australian financial crimes regulator, anti-money laundering and counter-terrorism financing regulator and specialist financial intelligence unit which is responsible for detecting, deterring, and disrupting criminal abuse of the financial system.}