Real estate in Australia has historically been a primary channel for laundering illicit funds. With Tranche 2, the sector faces direct regulation under AUSTRAC. The goal is to verify buyers and sellers efficiently, protecting the market without stalling property deals.
What Tranche 2 means for real estate agencies
From July 2026, agencies must conduct Customer Due Diligence (CDD), monitor transactions, train staff, and file SMRs. The major change is shifting from simple ID checks to verifying the legal entity behind the purchase.
“KYC in property is no longer about matching a face to a passport; it's about tracing the money trail and understanding who truly benefits from the transaction.”