Under Queensland's anti-money laundering obligations, a real estate agent who suspects a property transaction involves proceeds of crime should:

Q: What is the correct answer to: Under Queensland's anti-money laundering obligations, a real estate agent who suspects a property transaction involves proceeds of crime should:

The correct answer is Report the suspicious matter to AUSTRAC and not tip off the client. Under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, real estate agents must report suspicious matters to AUSTRAC. Critically, tipping off the parties about the suspicion or the report is itself a criminal offence that could compromise any law enforcement investigation.

Q: What background knowledge is needed for this Ethics Compliance question?

Real estate agents are reporting entities under the AML/CTF Act 2006. They must have AML programs, conduct customer due diligence, and report suspicious matters. Common red flags include cash payments, unusual transaction structures, and parties unwilling to provide identification.

Q: What is a good way to remember the answer to this Ethics Compliance question?

Suspicious transaction? Report to AUSTRAC. Do NOT tip off the parties — tipping off is itself a criminal offence. Suspicion of money laundering? Report to AUSTRAC confidentially. Never tell the client you have reported them.

Q: What exam tip applies to this Ethics Compliance question?

Two key AML rules: (1) report to AUSTRAC and (2) do NOT tip off the parties. Both are mandatory.

Q: How does this Ethics Compliance concept apply in Australian real estate practice?

A buyer wants to pay a $1.2M deposit in cash from multiple bank accounts. The agent recognises this as a red flag and files a suspicious matter report with AUSTRAC without alerting the buyer. AUSTRAC coordinates with law enforcement for further investigation.

Question

Ethics ComplianceQLDMEDIUM

Under Queensland's anti-money laundering obligations, a real estate agent who suspects a property transaction involves proceeds of crime should:

Answer Options

A

Complete the transaction and report afterwards

B

Report the suspicious matter to AUSTRAC and not tip off the client

C

Inform the seller and buyer of the suspicion

D

Contact the REIQ for guidance before taking any action