“By integrating these measures into everyday business practice, real estate professionals can elevate both their reputational standing and their day-to-day operational security by protecting their businesses from misuse by criminals.”
AUSTRAC chief executive officer Brendan Thomas says the extended measures will assist industry and AUSTRAC to better identify and mitigate the significant risks of money laundering and terrorism financing,
“by expanding the regime to regulate high-risk services in new sectors and improve the level of financial intelligence collection.”
For AUSTRAC who oversee the measures, the tranche 2 extension improves the effectiveness of the AML/CTF regime by making it simpler and clearer for businesses to comply with their obligations and support them to better prevent and detect financial crime.
They also modernise the regime to reflect changing business structures, technologies and illicit financing methodologies.
“The measures in the bill will assist industry and AUSTRAC to better identify and mitigate the significant risks of money laundering and terrorism financing, by expanding the regime to regulate high‐risk services in new sectors and improve the level of financial intelligence collection,” Thomas says.
The risk is ever-growing with the amount of money being laundered generated from illegal activities causing up to $60.1 billion in harm to the Australian community, through crimes such as drug trafficking, cybercrime, scams, child exploitation and human trafficking.
For Manthel the real estate industry’s future hinges on its own swift action and regulatory reform is not an abstract exercise – it imposes tangible costs on those who delay transformation.
“Failure to adapt may lead to sanctions, reputational damage, and a loss of competitive edge,” Manthel says.
The good news is the sector doesn’t have to go it alone with a company such as AMLHUB liaising directly with AUSTRAC and helping raise awareness of AML compliance with the nation’s 46,000 real estate firms.
AMLHUB chief executive Richard Manthel.
Furthermore, AMLHUB possess deep industry expertise having worked in anti-money laundering compliance for well over a decade.
More pertinently, they are real estate specialists who have worked with close to 10,000 real estate agents in the space creating bespoke end-to-end compliance solutions for every client.
Manthel says early compliance is less a regulatory burden and more a strategic imperative as the nation’s property market, long exposed to the vulnerabilities of high-value transactions and opaque intermediaries, now faces a regime designed to root out illicit flows of money.
For real estate professionals, this means developing tighter compliance protocols by investing in systems that enable every agent to manage their AML obligations.
Put simply, compliance means being able to ensure property listings get to market more quickly without disruption.
While the reforms recalibrate the system in a manner that deters criminal elements, they also offer an opportunity to lead with transparency – and secure Australia’s ongoing reputation as a safe place to invest.
The message from AUSTRAC and compliance experts alike is clear – the clock is ticking, and early action is not just smart, it’s essential.
To learn more, please visit AMLHUB.