Three-quarters of conveyancers worried by new AML compliance
Survey shows property professionals are still unsure about their responsibilities under looming law reforms.
WITH new anti-money laundering and counter-terrorism financing (AML/CTF) rules just a year away, up to 78 per cent of property professionals say they’re not ready for the changes.
The latest tranche 2 of obligations applying to conveyancers, real estate agents, buyers’ agents, developers and lawyers will be enforced from 1 July 2026.
Conveyancers will need to register with AUSTRAC, conduct due diligence on their clients, note large cash transactions, maintain records and report suspicious activity.
It’s one of the most talked about issues facing conveyancers who have been warned they face big fines for non-compliance.
Australian Conveyancer recently highlighted that fines for breaches could amount to $19,000 a day.
The cost of complying is also significant. The Attorney-General’s department releasing estimates showing that businesses with a turnover under $200,000 a year will face upfront costs of $4, 040 and annual fees of $6,020.
A new survey conducted for PEXA found most practitioners welcomed the new regime, but almost 70 perf cent are concerned about the complexity and cost.
“It is accepted across the industry that these reforms will be a challenge,” PEXA’s Kate Camilleri said.
More than 200 lawyers and conveyancers, and 100 real estate agents, took part in the survey. It found:
- 65 per cent of conveyancers and lawyers are unfamiliar with the new AML obligations, compared to 29 per cent of real estate agents.
- 78 per cent of conveyancers and lawyers are unprepared for the changes, compared to 25 per cent of real estate agents.
- 38 per cent of conveyancers and lawyers reported a moderate understanding of the impact of the AML changes, compared to 42 per cent of real estate agents.
Many expressed concerns about the time, workload and costs associated with compliance, and the effect on customers including delays in settlements.
Reaal Estate Institute of Australia president Leanne Pilkington highlighted some property practitioners are more prepared – while other smaller players will face greater pressures.
“The level of readiness varies greatly. There’s a lot of the bigger brands and franchisors doing a lot of work behind the scenes. The ones I’m concerned about are the independents who don’t have somebody to lean on,” she said.
AUSTRAC’s online explainer summarises key responsibilities, including the development of an AML/CTF program (which must be independently evaluated at least once every 3 years), staff training, enrolment and registration.
Registration is vital: criminal penalties including fines can apply for non-compliance.
But AUSTRAC pulls no punches. “The businesses we regulate are at the front line of combating money laundering, terrorism financing and the crimes they enable,” it says.
Find more at https://www.austrac.gov.au/about-us/amlctf-reform
Australian Conveyancer also has a special Hot Topics section covering anti-money laundering.
