Buyer's agents and AUSTRAC — what you need to know

Buyer's agents are fully inside Tranche 2. Brokering the purchase of real estate is the same designated service as brokering a sale — both sit at s 6, Table 5, Item 1 of the AML/CTF Act 2006 (Cth). 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 small-operator exemption.

The obligations are identical to a seller's agency. Enrolment with AUSTRAC, a written AML/CTF programme, an appointed Compliance Officer, customer due diligence, sanctions and politically-exposed-person screening, transaction monitoring, suspicious-matter and threshold-transaction reporting, seven-year record-keeping, ongoing training, and an independent evaluation of the programme at least every three years. None of these are reduced or modified because you act for the buyer rather than the seller.

Who you verify is different. Your customer is the buyer you represent. You verify your own client's identity, screen them against the DFAT consolidated list and PEP databases, and document the process. The vendor is not your customer — verifying them is the selling agent's job from 1 July 2026 onwards.

Timing of CDD. Section 28 of the Act requires initial CDD before the designated service is provided. For a buyer's agent the engagement itself is the start of the service, so verify the client at the point the buyer's agency agreement is signed. Do not wait until exchange or settlement. Limited delayed-CDD provisions in the Rules apply to specific real-estate circumstances, but they are a fallback, not a default.

Reliance arrangements. From 1 July 2026 selling agents will also be reporting entities. You may rely on a selling agent's CDD for the vendor side of a transaction under a written reliance arrangement that records how the reliance requirements are satisfied. Reliance does not reduce or transfer 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 the premium segment, acting for foreign purchasers, or operating in higher-risk geographic markets will need to apply enhanced customer due diligence more often than a generalist suburban seller's agency. A programme copied from a selling-agency template will not reflect a buyer's-agent risk profile and is unlikely to survive an AUSTRAC inspection.

Sole traders. Self-appointment as Compliance Officer is permitted. You need an enrolment, a tailored programme, a CDD process built into your standard engagement workflow, and a record-keeping system that retains every artefact for seven years. The Compliance Officer obligation carries personal responsibility under ss 26J and 26K of the Act — if you appoint yourself, understand what that entails.

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. If you operate as a sole trader, draft your programme around what you actually do — not a download from a seller's-agent association.