The short answer
If you conduct real estate sales after 1 July 2026 without having enrolled with AUSTRAC and having an AML/CTF program in place, you are in breach of the AML/CTF Act 2006. AUSTRAC can impose civil penalties, refer matters for criminal prosecution, issue public warning notices, and refer you to your state licensing authority.
The penalties are not symbolic — they are designed to be genuinely deterrent, and AUSTRAC has demonstrated it will use them against businesses that treat compliance as optional.
AUSTRAC levied a $1.3 billion penalty against Westpac in 2020 and a $700 million penalty against the Commonwealth Bank in 2018. While small agencies won't face numbers like these, the same legislation applies — and AUSTRAC has stated publicly that Tranche 2 enforcement will be a priority.
The penalties
What AUSTRAC can actually do
Infringement notices
For less serious breaches, AUSTRAC can issue an infringement notice — essentially an on-the-spot fine. These are faster and don't require court proceedings.
Enforceable undertakings
AUSTRAC can require a business to enter into a formal undertaking committing to specific corrective actions and ongoing reporting. Breaching an undertaking is itself a serious offence.
Civil penalty orders
AUSTRAC can apply to the Federal Court for civil penalty orders. These are the largest penalties and result in public court records — with significant reputational consequences.
Public warning notices
AUSTRAC can issue a public warning notice naming your agency as non-compliant. This is publicly searchable and can severely damage your agency's reputation with vendors and buyers.
Criminal prosecution
For the most serious breaches — deliberate non-enrolment, failure to report known suspicious matters, or tipping off — AUSTRAC refers matters to the Australian Federal Police for criminal investigation.
Will AUSTRAC really come after small agencies?
The honest answer is: it depends on how enforcement rolls out. Regulators typically focus their initial enforcement on the most egregious cases — deliberate non-enrolment, failure to report known suspicious matters, or systemic failures. Small agencies that made a genuine effort but got some details wrong are less likely to face the maximum penalties.
However, "I didn't know about it" is not a defence. The law requires you to comply regardless of whether you were personally notified. And as AUSTRAC builds its register of enrolled entities, non-enrolled agencies will become easier to identify.
Industry associations are watching
Major real estate industry bodies including REIA and state REIs have been briefing members on Tranche 2 for months. Non-compliance reflects badly on the industry and members who repeatedly breach may face disciplinary action from their own associations in addition to AUSTRAC action.
What about ongoing compliance failures?
Enrolment is just the first step. Failing to conduct CDD, failing to maintain records, failing to file suspicious matter reports, or having an inadequate AML/CTF program are all separate potential contraventions — each of which can attract their own penalties.
This is why ongoing compliance matters, not just getting enrolled before the deadline.
The easiest way to stay compliant
SimpleAML is a free tool built specifically for Australian real estate agents to get compliant before 1 July 2026 — and stay compliant after. It takes most agencies less than two hours to complete the full setup.
Don't be the agency that gets made an example
Get enrolled, get your program in place, and get your team trained. SimpleAML's free app walks you through every step.
Get compliant now — it's free → Enrolment guide