EP43 Understanding AML-CTF in WA Real Estate: A Guide for Agents, Buyers & Sellers

This week on the WA Property Q&A, Peter Fletcher welcomes back Ches Rafferty to discuss the significant changes brought about by AML-CTF (Anti-Money Laundering and Counter-Terrorism Financing) regulations impacting Western Australian real estate agents and conveyancers.

Ches clarifies the complexities of these new rules, effective July 1st, 2026, emphasizing the importance of customer due diligence and suspicious matter reporting. He explains the need for real estate professionals to verify the identities of buyers and sellers, outlining the potential consequences of non-compliance – hefty fines reaching millions of dollars.

While acknowledging privacy concerns, Ches stresses the crucial role of these regulations in preventing serious crimes like drug trafficking and human exploitation. He also highlights the upcoming release of detailed guidelines from AUSTRAC in January 2026, advising listeners to begin their education and planning now, but to avoid rushing into costly solutions before the guidelines are released.

Key Takeaways:

AML-CTF regulations require real estate agents and conveyancers to implement comprehensive compliance programs by July 1st, 2026.Customer due diligence, including identity verification and checks against sanctions and politically exposed persons lists, is mandatory.Suspicious matter reports must be filed with AUSTRAC when unusual behavior is detected, even if it's a "mate" involved in the transaction. Non-compliance carries severe penalties, including substantial fines and potential business closure.Detailed AUSTRAC guidelines will be released in January 2026; professionals should begin educating themselves and planning their compliance strategy now.

Understanding AML-CTF in WA Property

What is AML-CTF? AML-CTF stands for Anti-Money Laundering and Counter-Terrorism Financing. It's a federal act expanding regulations to minimize money laundering and terrorism funding in various sectors, including real estate. This impacts real estate agents and conveyancers (but not property managers) from July 1st, 2026.

Impact on Real Estate Agents and Conveyancers: All real estate agents and conveyancers must implement an AML-CTF program, conduct customer due diligence (identifying buyers), and file suspicious matter reports (SMRs) with AUSTRAC if buyer behavior seems suspicious. Detailed guidelines from AUSTRAC are expected in January 2026.

Customer Due Diligence:  This involves verifying the identity of buyers and sellers, checking a