AML/CTF reforms: what property agents should check in their insurance

For property agents, the anti-money laundering and counter-terrorism financing (AML/CTF) changes warrant a review of existing insurance. Whether management liability cover responds depends on the circumstances of the matter and the policy’s terms, including any exclusions or endorsements relevant to your property services.

Why review your insurance now?

From 1 July 2026, Australia’s expanded AML/CTF obligations brought certain real estate services into regulation, including brokering property sales and purchases. AUSTRAC’s real estate guidance explains which activities are affected and links to the official requirements.

Start with the services your business performs and the entities that perform them. Tell RMA Insurance Brokers about any changes since your last review, including new property activities or a change in business structure.

What management liability may contribute

Management liability insurance is designed to address certain claims arising from how a business is managed. Depending on the policy and sections selected, it may include protection for directors and officers, the business itself and certain statutory exposures.

An AML/CTF matter needs a closer look. Legal representation during an investigation, defence of proceedings and any penalty are separate insurance questions. A policy may respond to some costs while excluding others.

Even if your policy includes statutory liability, exclusions or endorsements may limit how it responds to an AML/CTF matter. These need to be checked for any restrictions relating to AML/CTF breaches or the professional services your business provides. An unintentional mistake may still fall outside the cover.

“Ask what your policy says about an AML/CTF matter before you need to rely on it.”

What needs checking in the wording?

Ask RMA Insurance Brokers to review your current schedule, policy wording and all endorsements. The discussion should establish:

• Whether any AML/CTF exclusion or endorsement changes the cover available.
• Which business entities and people are insured for the property activities described.
• What starts investigation or defence-cost cover, and when insurer consent is needed.
• Which limits, sublimits and excesses apply, including whether legal costs reduce the remaining limit.

Fines and penalties need separate consideration. Cover depends on the policy terms and whether the amount can legally be insured. Legal-cost cover should not be read as confirmation that a penalty will also be paid.

Where the wording is unclear, RMA Insurance Brokers seeks written clarification from the insurer, tied to the relevant clause and your business activities.

Where professional indemnity fits

Property agents should also hold professional indemnity insurance, which addresses allegations arising from professional advice or services. Its purpose differs from management liability.

Include both policies in the review where an allegation could concern the property services provided to a client. Holding both does not mean a gap in one is automatically picked up by the other.

If a matter has already arisen

If you receive a regulatory notice or become aware of a matter that could lead to a claim, contact RMA Insurance Brokers promptly to check notification requirements. Do not wait until renewal or until a penalty is imposed. Check any insurer-consent requirements before incurring legal costs you intend to claim.

An existing matter also needs to be considered before changing or arranging cover. A new policy should not be assumed to address something already known.

For help assessing how your insurance addresses AML/CTF exposure, contact RMA Insurance Brokers.