Home Property Australia All hands on deck for AML/CTF changes

All hands on deck for AML/CTF changes

  • July 19, 2024
  • by Property Australia
Proposed reforms are being developed with draft legislation to follow.

In June the Property Council made its submission on the government’s proposals to reform Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime.

We welcomed amendments made by the government since its original proposals in 2023, including removing residential and commercial leases, and property management from the regulation.

This represents sensible change, avoiding a regulatory burden on a high volume of low value transactions, posing a relatively low risk. This is the result of ongoing advocacy with the department and at the ministerial level.

We made a number of recommendations in our submission and at the industry roundtable with the Attorney-General’s Department and AUSTRAC back in May, including seeking clarity on whether a number of services will be regulated, including

  • Conjunction agreements, where one entity transfers their obligation or right to sell a property to another entity, and each receiving an agreed earning or commission.
  • Initial refundable deposits (or holding deposits), which can be requested by real estate professionals to secure buyers’ interests. These are paid prior to a full deposit and contract for sale is signed, are of a low dollar value (as low as $1,000 in some jurisdictions such as NSW) and are fully refundable.
  • Granting of easements and land dedications to public or utility authorities, or the grant of mortgages, and
  • Auction services, including the practical difficulties of conducting due diligence on all registered bidders prior to auction.

The second round of consultation has closed and we will further engage with the Attorney-General’s Department and AUSTRAC on property sector specific guidance, training and education and other reforms to simplify and modernise the regime.