Buyer's agents and AUSTRAC — what you need to know
Whether buyer's agents are captured by AUSTRAC Tranche 2, what obligations apply, and how the compliance workflow differs from a traditional selling agency.
Yes — buyer's agents are fully captured by AUSTRAC Tranche 2. Representing a buyer in the purchase of real property is a designated service under Item 53 of the AML/CTF Rules 2025. From 1 July 2026, every buyer's agent — sole trader, company, or partnership — is a reporting entity with the complete suite of obligations. There is no minimum transaction threshold and no exemption for small operators.
The obligations are identical to a selling agency. Enrolment with AUSTRAC, a written AML/CTF programme, a named Compliance Officer, customer due diligence, sanctions and PEP screening, transaction monitoring, suspicious matter reporting, and seven-year record-keeping. None of these are reduced or modified because you represent the buyer rather than the seller.
Who you verify is different. Your customer is the buyer you represent — not the vendor. You are responsible for verifying your own client's identity, screening them against the DFAT consolidated list and PEP registers, and documenting the process. The vendor is not your customer. Their verification is the selling agent's obligation.
Timing of CDD. Verify your client at the point of engagement — when the buyer's agency agreement is signed. Do not wait until exchange or settlement. The AML/CTF Rules 2025 require CDD before or as soon as practicable after commencing the designated service, and engaging under a buyer's agency agreement is the commencement of that service.
Reliance arrangements. From 1 July 2026, selling agents will also be reporting entities. You may be able to rely on a selling agent's CDD for the vendor side of a transaction under a written reliance arrangement. This does not affect your obligation to verify your own client.
Risk profile. Your programme and risk assessment must reflect the actual nature of your client base. Buyer's agents working in the premium segment, acting for foreign purchasers, or operating in higher-risk geographic markets may need to apply enhanced CDD in some circumstances. A programme copied from a selling agency template will not accurately reflect your risk profile.
Sole traders. Self-appointment as Compliance Officer is permitted. You need a programme, an AUSTRAC enrolment, a process for verifying clients at engagement, and a record-keeping system that retains everything for seven years.
What to do next: Enrol with AUSTRAC, appoint yourself or a nominated person as Compliance Officer, and build CDD verification into your standard buyer's agency agreement workflow before 1 July 2026.