The Australian Transaction Reports and Analysis Centre (AUSTRAC) is now working within the mortgage industry to see how widespread mortgage fraud has become. Every professional in the process of securing mortgage loans must adhere to the KYC rule (Know Your Customer) – Who are you dealing with, including the source of the funds.

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF) is Australia’s core legislative framework designed to prevent money laundering and terrorism financing, and is overseen by AUSTRAC. This system is designed to stop criminals from hiding dirty money or funding illegal groups in Australia. It requires reporting entities to identify, mitigate, and report financial crime risks. Expanded reforms effective from 1st July 2026 now include new groups to have legal duties: lawyers, accountants, real estate agents, conveyancers and dealers in precious stones and metals.

AUSTRAC focuses on falsified income documents, artificial identities and professional organisers that have allegedly been used to wash criminal proceeds through residential property. If you fail an AML check, the transaction may be delayed or halted entirely or cause one of the following :

  • Transaction is paused
  • You may be asked to provide further documentation or clarification. Additional documents requested
  • Your solicitor may request more information to verify the source of your funds.

 

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