Research shows over 60% of real estate industry concerned by complexity of AML reforms
PEXA research shows new anti-money laundering reforms welcomed by real estate industry but over 60 per cent concerned by complexity and cost
Melbourne, Australia: The introduction of new anti-money laundering regulations for property transactions will enhance market integrity and transparency but the additional compliance obligations are raising concerns with the property industry, with 69 per cent concerned by the increased complexity and cost.
PEXA, Australia’s leading digital property settlements company, also welcomed the recent release of AUSTRAC’s second draft rules, Anti-Money Laundering and Counter-Terrorism Financing Rules 2025 (2nd Exposure Draft) which allow participants in real estate transactions to participate in an arrangement to enable the sharing of information across the property transaction supply chain.
“Through these rules, the Federal Government and AUSTRAC have listened to the industry and are demonstrating their support for an efficient and effective industry solution. PEXA is well placed to deliver a solution to reduce the complexity and cost while increasing the effectiveness of detecting money laundering through property transactions in Australia. We are currently consulting with how PEXA may assist the industry in achieving compliance,” said PEXA General Manager Strategy and Delivery, Kate Camilleri.
According to an independent survey commissioned by PEXA, while there is optimism about the impact of increased accountability, there is also a lack of preparedness and understanding about the impact of the expansion of Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime into property transactions.
Effective from July 2026, these reforms will require each party in the property supply chain who facilitates the sale and purchase of a property – including real estate agents, property developers, buyer and seller advocates, lawyers and conveyancers – to complete due diligence on buyers and sellers, monitor the transaction and report any risk of money laundering or terrorism financing to AUSTRAC, Australia’s financial intelligence unit and AML/CTF regulator.
These reforms are important as real estate is considered a significant channel for money laundering or criminal activity as it allows for the movement of large sums of cash in a single transaction.
As part of its work to help the sector to implement the new AML/CTF regime, PEXA commissioned research to assess awareness and readiness for the pending reforms. More than 200 lawyers and conveyancers, and 100 real estate agents, participated in the survey.
The results showed that:
- Familiarity, preparedness and understanding of how the changes will affect business is low:
- 65% of lawyers and conveyancers are unfamiliar with the new AML obligations, compared to 29% of real estate agents
- 78% of lawyers and conveyancers are unprepared for the changes, compared to 25% of real estate agents
- 38% of lawyers and conveyancers reported a moderate understanding of the impact of the AML changes, compared to 42% of real estate agents
- 77% of real estate agents said they were concerned about preparing for new compliance obligations.
- More than half of survey participants are concerned about changes to their business, including:
- The complexity and cost of the changes to my business.
- Managing potential impacts to my customers including delays to settlement
- Managing potential impacts to my business including the services I can continue to provide and how I provide them.
In general comments about the incoming AML changes, participants said they would enhance the integrity and transparency of the Australian property market and would result in attracting more legitimate investors with a reduced risk of illegal activity.
However, many participants also noted that the changes would add another layer of complexity to transactions and lead to a significant increase in time, workload and costs to meet the compliance obligations. The issue was of particular concern among small business owners who are not resourced or equipped to carry substantial additional regulatory burdens.
Ms Camilleri said the results validated PEXA’s work with industry, government and regulators to explore how the eConveyancing network, which already connects all parties to a property transaction, can be leveraged to provide a more effective and efficient infrastructure to support these reforms.
“It is accepted across the industry that these reforms will be a challenge, and we all need to work together to find the best way forward for all participants,” Ms Camilleri said.
“While work is underway to educate and inform the sector about what is ahead, PEXA understands that more needs to be done to develop an innovative solution that will give confidence to all participants and ensure the market is protected.”
Ms Camilleri said that PEXA, as a leader within the industry, is committed to working with all stakeholders to determine how it can help the industry meet the new AML/CTF requirements and minimise duplication, ensure consistency and reduce the compliance burden on small business.
-ends-
For more information or to arrange an interview opportunity with PEXA General Manager Strategy and Delivery Kate Camilleri please contact:
Liz Deegan
Cato & Clive
E: liz@catoandclive.com
M: 0418 650 936
About PEXA Group
PEXA Group is a world-leading ASX-listed digital property exchange platform and property insights solutions business. The PEXA Group of companies, including: .id (Informed Decisions), Value Australia and Land Insight, also delivers a new generation of data solutions that empower businesses and governments to make more informed property and place-related decisions. PEXA Exchange is the leading digital property settlements platform in Australia. PEXA is a licenced operator of Australia’s largest Electronic Lodgement Network (the PEXA Exchange). Since 2013, PEXA has facilitated more than 20 million property settlements through the PEXA Exchange in Australia, with 89% market reach, and in 2022 PEXA launched in the UK.
About the research:
The research was conducted by Nature on behalf of PEXA. It was in market from April 29, 2025 to May 12, 2025. There were 337 respondents nationally, made up of 223 lawyers and conveyancers, and 114 real estate agencies.