What Is a Designated Service Under the AML/CTF Act? A Real Estate Guide

What is a "designated service"?

Under the AML/CTF Act, a "designated service" is a specific activity listed in the Act that triggers AML/CTF obligations. If your business provides a designated service with a geographical link to Australia, you are a reporting entity and must enrol with AUSTRAC, run an AML/CTF program, conduct CDD, screen customers, lodge suspicious matter reports, and keep records.

Think of the designated service as the switch. Turn it on (by providing the service), and the full AML/CTF regime applies.

Real estate designated services

AUSTRAC has published a specific page listing the designated services relating to real estate that commence on 1 July 2026.

AUSTRAC states these services regulate "the sale, purchase and transfer of… interests" in real estate, whether or not payment or other consideration was involved. Real estate is defined by reference to section 5 of the Act and the Explanatory Memorandum.

The upshot: if you're a real estate agent, conveyancer, property developer, buyer's agent or settlement agent involved in the sale, purchase or transfer of real estate in Australia — from 1 July 2026 you're providing a designated service.

When a buyer's agent starts providing a designated service

Practical implications:

• The trigger is the signing of the buyer's agency agreement (or equivalent document). Not the first call, not the consultation — the signed agreement.
• Once signed, you are providing a designated service. CDD must be completed before you start acting (with delayed CDD permitted where it would disrupt the ordinary course of business).
• General market commentary, initial consultations, and referrals don't constitute designated services on their own.

When a conveyancer is providing a designated service

A conveyancer or settlement agent is providing a designated service when they assist a client in the sale, purchase or transfer of real estate. Per the AUSTRAC Conveyancer Program Starter Kit, conveyancers conduct CDD on the client on whose behalf they act — not both parties.

If you act for the buyer, you CDD the buyer. If you act for the seller, you CDD the seller. This is a key distinction from real estate agents brokering the same transaction.

Transfers without consideration are still caught

AUSTRAC is deliberate about this. The designated service covers the sale, purchase or transfer of interests, whether or not there was payment or other consideration. Intra-family transfers, gifts of real estate, deed corrections that actually transfer an interest — all can be designated services.

This surprises people. The common assumption is that "no money changing hands" means AUSTRAC doesn't care. The Act takes the opposite view: the transfer is the risk event, not the payment.

Exclusions from the definition of real estate

AUSTRAC's guidance (referencing Explanatory Memorandum paragraph 306) states the definition of real estate excludes some interests. The one most people encounter:

• Leases of 30 years or less — typical residential and commercial tenancies fall outside the "real estate" definition and so don't trigger designated services on their own.

This is why property management (rent collection, tenancy management, maintenance coordination) is generally not captured. However, if a property manager also assists with sales or purchases, those activities are captured.

For the full list of exclusions, refer to the Explanatory Memorandum or seek legal advice for any unusual arrangements (long-term leasehold, options, licences).

The geographical link to Australia

AUSTRAC states: "While the 'real estate' can be located in a foreign country, you'll only have obligations under the Act if the designated service has a geographical link to Australia."

In practice, this means:

• An Australian real estate agent brokering the sale of Australian real estate — designated service with Australian link. Captured.
• An Australian buyer's agent helping a client purchase Australian real estate — captured.
• An Australian practice advising on the sale of property located overseas to an Australian buyer — may be captured if the service has a geographical link to Australia. Seek specific advice.

A note on dealers in precious metals, stones and products

While this guide focuses on real estate, AUSTRAC also publishes specific designated services for dealers in precious metals, stones and products. Unlike real estate, the precious metals designated service has a specific monetary threshold ($10,000 or greater) and a currency constraint (physical currency or virtual assets only — not debit/credit/bank transfer).

For jewellers, bullion dealers and broader DPMSPs, see our AML software for jewellers and bullion dealers page.

Frequently asked questions

What is a designated service under the AML/CTF Act?

A designated service is a specific activity listed in the Act that triggers AML/CTF obligations. If you provide a designated service with a geographical link to Australia, you are a reporting entity and must comply with the full AML/CTF regime from 1 July 2026 (for Tranche 2 entities).

What real estate activities are designated services?

AUSTRAC publishes a specific page listing the real estate designated services. Broadly, the sale, purchase and transfer of real estate interests are designated services, with specific triggers for agents, buyer's agents and conveyancers.

When does a buyer's agent start providing a designated service?

Per AUSTRAC: when an agreement to find or identify a property is signed. The trigger is the signed buyer's agency agreement, not earlier consultations.

Is a transfer without payment still a designated service?

Yes. AUSTRAC's guidance explicitly states that a conveyancer helping a parent transfer the family home to their child without consideration is providing a designated service. The transfer of interest is the trigger, not whether money changed hands.

Are long-term leases designated services?

No. Per AUSTRAC (referencing the Explanatory Memorandum paragraph 306), leases of 30 years or less are excluded from the definition of real estate and so do not trigger designated services on their own.

Do I have obligations if the property is overseas?

Only if the designated service has a geographical link to Australia. Real estate located overseas does not automatically create Australian obligations; what matters is the service and its Australian connection. Seek specific advice for cross-border scenarios.

Disclaimer: This article provides general information sourced from AUSTRAC's published guidance and the AML/CTF Act 2006. It does not constitute legal advice. Confirm your specific obligations with AUSTRAC or a qualified legal adviser.