Question 1

What is Anti-Money Laundering (AML?)

Accepted Answer

AML stands for Anti-Money Laundering and refers to measures aimed at preventing criminal groups from using property transactions to launder money. Money laundering is an illegal activity that seeks to ‘clean’ cash or funds derived from criminal activity by buying and selling legitimate assets such as property, often using cash.

Question 2

What is Counter-Terrorism Financing (CTF)?

Accepted Answer

Counter-Terrorism Financing refers to measures taken by organisations that are aimed at preventing terrorist groups from using property transactions to fund terrorist activities.

Question 3

How does money laundering occur through real estate?

Accepted Answer

Criminals use large sums of illicit money to buy legitimate assets, such as property, then hold or resell them to make the money appear legitimate. They use shell companies, trusts, offshore entities and even third-party ownership to hide the true owner of a property. All-cash purchases are also common, as they bypass bank scrutiny and make detection more difficult.

AML/CTF Frequently Asked Questions

All your compliance questions, answered.

AML / CTF explained

Timeline & Tranche 2

AUSTRAC & enrolment

AML & CTF obligations by profession

Compliance & non-compliance

Additional help & resources

PEXA Clear