The Real Estate Institute of Queensland (REIQ) is calling for significant changes to proposed anti-money laundering laws that could cost the property industry $2 billion annually.
According to government estimates, Queensland’s property sector alone would need to absorb approximately $250 million per year in compliance costs under the proposed Anti-Money Laundering and Counter-Terrorism Financing regime.
REIQ CEO Antonia Mercorella appeared before a Federal Senate Committee to voice concerns about the impact on small businesses and property transactions.
“We fully support the Government’s commitment to protecting the integrity of the Australian financial system,” Ms Mercorella said.
“However, the proposed framework doesn’t fully take into account the practical challenges faced by real estate businesses—namely the lack of resources and specialised expertise needed to meet these complex compliance requirements.”
She said that while major banks have dedicated teams for compliance, most real estate businesses operate with minimal staff and resources.
“In contrast, most real estate businesses in Queensland are small, independent operations, often with fewer than five employees, and are not equipped with the expertise or systems necessary to meet the extensive AML/CTF obligations,” she said.
The REIQ is proposing alternative solutions, including a technology-based approach that would allow collaboration between real estate agents, legal professionals and financial experts.
“We propose a solution where real estate agents play an active role in the AML/CTF process undertaking reasonable tasks that include verification of identity and suspicious behaviour monitoring and reporting,” Ms Mercorella said.
She said that more complex tasks should be handled by legal and financial professionals.
“Meanwhile, more complex and highly technical tasks, such as source of funds or source of wealth checks and Politically Exposed Persons (PEP) identifications, should be left to legal practitioners and accountants,” she said.
