Australian Real Estate Agents, Lawyers and Accountants Must Verify Buyers Under New Anti-Money Laundering Rules From July 1

New anti-money laundering laws take effect July 1 that require real estate agents, conveyancers, lawyers, accountants, gem dealers and precious metal brokers to verify customers and determine the source of funds, Abc reported. The Tranche 2 rules bring these industries in line with banks and casinos already subject to similar checks.

AUSTRAC estimates criminals linked to China laundered $1 billion through Australian real estate in 2020.

The regulator described money laundering through real estate in a 2015 brief as relatively uncomplicated, requiring little planning or expertise, and noted that large sums of illicit funds can be concealed through property purchases. Affected professionals must register with AUSTRAC and complete training.

Ray White Group, which has more than 12,000 agents, sent its agency compliance manager Shaun Doyle to every state and territory twice in the past year to prepare staff.

Doyle said the change ranks among the most substantial for the industry due to its complexity and seriousness. He added that agents must begin the verification process when meeting customers at the living room table. Michelle Romero, operations manager at Ray White Mt Gravatt, has worked in the industry for 35 years and will handle verifications for a team completing about 200 residential sales annually.

She said she prefers support from a large network rather than relying solely on AUSTRAC resources for standalone agents. Western Sydney lawyer Renee Roumanos said her industry is not ready and described the new obligations as turning professionals into gatekeepers for illicit cash. She has registered and trained every member of her business with AUSTRAC.