If you watched Channel 7 last week, you would have seen Australia's new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms make national news.

The report highlighted why the changes are necessary. It pointed to hundreds of millions of dollars' worth of property linked to organised crime and explained how criminals have used the real estate sector to move and conceal illicit wealth.

It's an important conversation.

But in a 90-second television segment, there simply wasn't time to explain what these reforms actually mean for the thousands of businesses now responsible for complying with them.

That's where the real challenge begins.

Many real estate agencies believe the new obligations simply mean asking for more identification documents.

They don't.

Identity verification is only the starting point.

Under Australia's new AML/CTF regime, agencies may also need to:

  • Complete a documented money laundering and terrorism financing risk assessment for their business.
  • Appoint a Compliance Officer responsible for overseeing the firm's AML program.
  • Develop and maintain a written AML/CTF Program.
  • Risk-rate customers based on factors including transaction type, ownership structure, geography and customer profile.
  • Screen customers against sanctions lists, politically exposed persons (PEPs) and adverse media.
  • Understand beneficial ownership when trusts and companies are involved.
  • Train staff to recognise suspicious activity and maintain ongoing compliance.
  • Keep detailed records explaining not only what decisions were made, but why they were made.

One misconception we encounter regularly is that existing Verification of Identity (VOI) processes satisfy the new legislation.

They don't.

VOI answers one question:

Is this person who they say they are?

AML asks a much broader question:

Could this transaction present a money laundering or terrorism financing risk?

Those are very different questions requiring very different processes.

Another common misunderstanding is that agencies only need to verify their own client.

Depending on the circumstances, businesses are expected to understand both sides of the transaction. If an agency intends to rely on another party's customer due diligence, that reliance needs to be properly documented within its AML/CTF framework.

Perhaps the biggest change, however, is cultural.

Real estate businesses have traditionally focused on selling property.

From now on, they are also expected to play an active role in protecting Australia's financial system from criminal exploitation.

That requires a different way of thinking.

The good news is that compliance doesn't need to become an administrative burden.

With the right governance framework, practical workflows and fit-for-purpose technology, AML can become part of everyday business operations rather than a separate compliance exercise.

Australia's new AML reforms are undoubtedly one of the biggest changes the property industry has faced.

The agencies that prepare early won't just meet their legal obligations—they'll strengthen governance, build customer confidence and be better positioned as regulatory expectations continue to evolve.

The conversation has now shifted from why these laws exist to how businesses comply.

That's the conversation every agency should now be having.