Woodards Steps in to Shoulder AML Compliance Burden

Real estate network Woodards will implement a centralised compliance framework to help its 23 offices prepare for sweeping new anti-money laundering and counter-terrorism financing (AML/CTF) laws that will come into effect on July 1, 2026.

The new legislation will require every Australian real estate agency involved in property sales to undertake strict identity checks, monitor transactions and report suspicious activity to AUSTRAC, Australia’s financial intelligence agency.

Under the new rules, agents will need to complete “customer due diligence” on both buyers and sellers.

This includes verifying a client’s identity, assessing potential risk, identifying beneficial owners and screening individuals against sanctions and politically exposed persons lists.

Real estate businesses will also need to keep records for seven years, provide regular staff training, lodge suspicious matter reports where appropriate and submit annual compliance reports to regulators.

Woodards Chief Executive Officer Nigel O’Neil said the group had spent months preparing its network for the changes, established a dedicated compliance team at head office and had deliberately chosen a centralised ‘Group Reporting Model’ to reduce the compliance burden on individual offices.

"Our mission has always been to be known as the real estate service business that does the right thing," Mr O'Neil said.

"While some in the industry are reportedly in denial or adopting 'hybrid models' that leave the compliance obligations on individual offices, we see this as a vital step in upholding the integrity of our business.

“For us, 'doing the right thing' means providing a unified shield for our entire network."

Rather than requiring each franchise office to register separately as a reporting entity with AUSTRAC, Woodards head office will act as the lead entity, managing compliance and reporting obligations across the entire network.

The network is partnering with First AML, a world-leading verification software provider, to ensure a digital-first and secure experience for all parties.

"We don’t believe something as significant as AML/CTF should be a burden for individual offices to navigate on their own," Mr O’Neil said.

"By moving to a Group Reporting Model, Woodards Head Office acts as the Lead Entity. This centralises the strict administrative requirements and supports complex Customer Due Diligence (CDD), ensuring that risk is mitigated at the brand, agent, and customer level simultaneously."

In practice, agents will still initiate the identity verification process with clients by collecting identification and beginning the customer due diligence checks through the digital platform.

However, more complex compliance tasks and regulatory reporting will be handled by Woodards’ dedicated compliance team.

The model also means suspicious activity reporting, audits and regulatory oversight will be managed centrally, helping agents focus on listing and selling property while compliance specialists handle the regulatory workload.

Woodards Ascot Vale and Carlton North Director Jason Sharpe said the approach provided reassurance for offices navigating the new regulatory environment.

“AML compliance is incredibly complex and the potential penalties for getting it wrong are significant,” the director said.

“Knowing that head office is handling the heavy lifting gives our teams enormous confidence. It means our agents can focus on their clients and transactions while still knowing the business is fully compliant and protected.”

Mr O’Neil said the initiative was designed to ensure Woodards’ agents could adapt smoothly to the new regulatory environment without disrupting the sales process.

"By taking this proactive, centralized stance today, we are future-proofing our marketplace and our people," Mr O’Neil said.

"At Woodards, we aren't just waiting for legislation to change; we are setting the standard for how a modern, responsible real estate group prepares for the future."