The federal government’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Amendment Bill 2024 has been scrutinised by the Legal and Constitutional Affairs Legislation Committee through an inquiry and report. If enacted, the legislation will introduce new compliance measures for real estate professionals nationwide. However, feedback in the report raised concerns among real estate professionals and the property sector mode broadly over its design and implementation.
The bill aims to strengthen compliance with the Financial Action Task Force (FATF)'s global standards, targeting gaps in Australia's financial crime defences. Key recommendations include delaying the implementation of the ‘tipping off’ offence to March 2025 and clarifying exemptions for barristers, custodial services, and other bodies to ensure that the AML/CTF regime does not unnecessarily capture them under its compliance framework.
Peak industry bodies such as the Real Estate Institute of Queensland (REIQ) and the Property Council have advised the committee of prohibitive compliance costs and operational challenges. For the real estate sector, upfront costs are estimated at $989 million, with ongoing annual costs of $4.9 billion, averaging $20,700 per business. Concerns include increased transaction delays, heightened due diligence requirements, and regulatory overlaps. Politically Exposed Person (PEP) monitoring and additional reporting are also considered overly burdensome measures in the regime’s compliance obligations.
Government bodies have acknowledged these issues, with AUSTRAC committing to consult with industries on developing compliance rules by late 2024. REIQ specifically emphasised the need for a regime that balances compliance with practical transaction processes. While the committee supports the bill, it stresses collaboration with industry to ensure effective, proportionate reforms. Their final passage of the legislation is recommended, subject to amendments addressing the above concerns.
Find the report here