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

Responding to a regulatory investigation can involve legal costs before any breach has been established. For property agents, the anti-money laundering and counter-terrorism financing (AML/CTF) changes are a reason to understand where management liability insurance may assist, what needs to be notified and which costs could remain with the business.

Why review your insurance now?

Since 1 July 2026, Australia’s expanded AML/CTF obligations have applied to certain real estate services, including brokering property sales and purchases. With these obligations now in effect, it is worth checking whether your insurance has been reviewed with this exposure in mind. AUSTRAC’s real estate guidance explains which activities are affected and links to the official requirements.

Give RMA Insurance Brokers a clear picture of your property work and which business entity carries it out. Include any services you have added or changes to ownership or structure since your insurance was last reviewed.

Where management liability may help

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.

The cost of responding to an investigation is a separate question from whether a policy covers a penalty. Both need checking, because assistance with legal costs does not necessarily mean the underlying breach or penalty is covered.

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?

When we review your cover, we look at the schedule, policy wording and endorsements together. The questions we work through with you include:

• 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.

Any cover for fines or penalties also depends on whether the amount can legally be insured.

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, contact RMA Insurance Brokers promptly, even if you are unsure whether it could involve your insurance. We can help check what needs to be notified and whether insurer consent is required before you incur legal costs you intend to claim. The same applies if you become aware of a matter that could lead to a 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.