iscover 
The Australian Transaction Reports and Analysis Centre (AUSTRAC) issued infringement notices to real estate, accounting and jewellery businesses, carrying fines of up to $21,840 for companies and $4,368 for individuals for failing to meet mandatory anti-money laundering and counter-terrorism financing (AML/CTF) registration requirements.
The regulator said penalties will mount each day businesses remain unregistered.
The AML/CTF regime expanded on 1 July 2026 to include businesses in sectors such as real estate, legal services, accounting, conveyancing, trust and company services, and dealing in precious stones and metals.
Businesses covered by Australia’s AML/CTF laws must be enrolled and taking steps to understand their obligations, assess their risks and put appropriate controls in place.
However, it remains unclear whether asset finance brokers may be subject to enrollment and subsequent obligations, including developing an AML/CTF program, appointing a compliance officer, conducting customer due diligence, and reporting suspicious matters.
What about brokers?
While this initial wave of enforcement action has not impacted brokers, concerns have been raised, particularly by the Finance Brokers Association of Australia (FBAA), that recent AML/CTF reforms may unintentionally capture commercial asset finance brokers.
In July, the FBAA sought urgent clarification following concerns that commercial asset finance broking activities could fall within the definition of “debt financing” as a designated service under the legislation.
The association said concerns centred on AUSTRAC’s guidance, which states that debt financing includes “all capital and debt-raising methods”, including “secured or unsecured bonds, bills or notes, asset financing, loans (including government loans) and debentures”.
It’s this broad definition that the FBAA has raised questions over whether commercial asset finance brokers arranging finance for a business to purchase a vehicle or piece of equipment could fall within the expanded regime.
All new entities captured by the definition could be required to enrol with AUSTRAC and meet a raft of AML/CTF obligations, including developing an AML/CTF program, appointing a compliance officer, conducting customer due diligence, and reporting suspicious matters.
Following discussions between the FBAA and AUSTRAC, the regulator acknowledged that the wording could be broad enough to potentially include commercial asset finance broking and recognised that its current guidance does not explain how it interprets the scope of “debt financing”.
“AUSTRAC has acknowledged our valid concerns and advised it is actively considering the issue before clarifying its position,” FBAA CEO Leo Gagic said.
AUSTRAC also advised the FBAA that it does not expect finance brokers to begin working towards compliance until it publishes its position on the scope of debt financing under the legislation.
“If the outcome is that finance brokering activities are within scope of the AML/CTF Act, we recognise that affected businesses will need time to work towards compliance, including establishing AML/CTF programs and training staff,” the regulator said.
Gagic said: “Brokers do not need to do anything now, and we will update the industry when we know more.”
Enforcement begins
The enforcement action followed AUSTRAC’s August requests for information to businesses that appeared to provide designated services without enrolling with the regulator.
The watchdog has now begun issuing the promised infringement notices to businesses that failed to meet the enrolment requirements within the required 28-day period.
AUSTRAC CEO Brendan Thomas said about 90 per cent of the businesses initially identified as having enrolment concerns had since registered or attempted to do so.
“The small number that continue to ignore their obligations should not expect AUSTRAC to ignore them.
“Real estate shouldn’t be a safe place for criminals to move dirty money. We need to work together to shut them out. If you’re required to enrol with AUSTRAC, do it now.
“If you don’t, you’re not only breaking the law, you risk leaving your business and the sector exposed to criminal exploitation. And if businesses continue to ignore their obligations, AUSTRAC will take action,” Thomas told Broker Daily’s sister brand, REB.
On 20 August 2026, AUSTRAC showed that only 17,970 agencies had registered out of about 45,000 offices nationwide.
On 1 October 2026, the number of registered agencies jumped to 18,350.
Thomas said that enrolment was a simple first step, and there was no excuse for failing to take it.
“We are actively looking for businesses that haven’t enrolled and we will issue more infringement notices where necessary, so if you have obligations under the scheme, now is the time to come forward, get in touch with AUSTRAC and get enrolled.”
[Related: APRA proposes shake-up of presale requirements]
Want to see more stories from trusted news sources?Make Broker Daily a preferred news source on Google.