# Independent AML/CTF evaluations: what real estate agencies need to know An independent evaluation is not another name for a quick internal check of your AML/CTF documents. Under the reformed framework, it looks at the **whole AML/CTF program**: how the agency assesses risk, how its policies are designed and whether the agency follows those policies in practice. For a newly regulated real estate agency, the useful question is not simply "when should we book an evaluator?" It is: what must our policies say, when is our first evaluation due, and what evidence will the evaluator need to see? This article is general information, not legal advice about whether a particular business is regulated or whether its program meets the law. ## What changed AUSTRAC says the reforms replaced an independent review of the old Part A of an AML/CTF program with an independent evaluation of the entire program. It is separate from the agency's own reviews and updates of its risk assessment and policies. The evaluation must consider three connected questions: 1. Was the ML/TF risk assessment undertaken or reviewed in line with the Act, Regulations and Rules? 2. Is the design of the agency's AML/CTF policy set aligned with those requirements? 3. In practice, has the agency identified, assessed, managed and mitigated its risks, and followed its own policies? That is why a tidy policy document is not, by itself, the whole answer. The evaluation can test the link between the policy, the agency's decisions and the records behind those decisions. ## The frequency rule: a floor and an agency-specific decision Your AML/CTF policies must set the frequency of independent evaluations. The frequency has to be appropriate to the agency's nature, size and complexity, and it must be **at least once every 3 years**. Section 26F of the AML/CTF Act sets that statutory floor. The three-year rule is a minimum, not a universal recommendation to wait three years. AUSTRAC expects an agency to document the rationale for the frequency it sets, including the factors about its business that led to that decision. A change in services, customers, delivery method or risks may call for an earlier review or evaluation under the agency's own arrangements. Get advice where the right timing or response is unclear. ## Your first evaluation may have a transitional deadline The ongoing three-year minimum should not be confused with the first-evaluation transition. For a newly regulated business, AUSTRAC's 2026 Transitional Rules use the final two digits of its AUSTRAC account number (AAN) to stagger the first deadline: - **30 June 2029** where both final AAN digits are odd. - **31 December 2029** where the second-last digit is odd and the last digit is even. - **30 June 2030** where both final AAN digits are even. - **31 December 2030** where the second-last digit is even and the last digit is odd. An agency receives its AUSTRAC account number when it enrols. Confirm the agency's own AAN-based deadline, record it in the program and plan from that date. The transition deals with the first evaluation; it does not remove the need for the policies to set an ongoing frequency and explain why that frequency fits the agency. ## Independence means more than being outside the business An evaluator can be internal or external, provided they are sufficiently independent. AUSTRAC describes independence as being free from bias, influence and conflicts of interest: free from relationships or circumstances that could compromise objectivity or professional judgment. In practical terms, the evaluator should be able to exercise independent judgement and should not be responsible for implementing or maintaining the program, developing the agency's AML/CTF systems and controls, or assessing its ML/TF risks. AUSTRAC also gives the AML/CTF compliance officer and compliance team as examples of people who are not independent of the work being evaluated. There are no mandatory evaluator qualifications in the guidance. However, AUSTRAC expects the person to have relevant AML/CTF knowledge and sufficient understanding of the sector and its risks. The agency should document how it decided that the evaluator was independent and suitable. ## What to prepare before an evaluation Give the evaluator enough to test what actually happens, not only what the policy says. That can include the ML/TF risk assessment, policies, records of policy and risk-assessment development, relevant customer and transaction records, internal review results, previous evaluation reports and access to the people who operate the process. The evaluator's report should go to the governing body and the senior manager responsible for approving the AML/CTF program. If it identifies adverse findings, the agency's policies need to address how it will review and, where required, update its risk assessment and policies. Keep the report, the decision record and the evidence of how findings were addressed. ## A sensible principal checklist 1. Confirm that the agency provides a designated service and that the correct AML/CTF program applies to it. 2. Identify the first-evaluation deadline that applies to the agency, including its AAN-based transitional deadline if it is newly regulated. 3. Set and document the ongoing evaluation frequency, with a rationale that reflects the agency's nature, size and complexity. 4. Decide how the agency will assess evaluator independence and suitability before appointing anyone. 5. Make sure the program describes the evaluation, report and response process. 6. Keep the evidence that connects policy requirements to the work the agency actually performs. ## Where AMLHive fits AMLHive can help a real estate team organise customer due diligence, screening, compliance tasks and the records an agency may need to make available for its own governance and evaluation process. It does not provide legal advice, select an evaluator or decide whether a program is compliant. It does not automatically lodge anything with AUSTRAC. The reporting entity remains responsible for its AML/CTF decisions and any required action through AUSTRAC Online. ## Sources - [AUSTRAC - Step 5: Conduct an independent evaluation](https://www.austrac.gov.au/industry-and-business/obligations-and-guidance/your-amlctf-program/develop-your-amlctf-programs/step-5-conduct-independent-evaluation) (accessed 12 July 2026) - [AUSTRAC - AML/CTF transitional rules 2026](https://www.austrac.gov.au/about-us/legislation/updates-legislation/amlctf-transitional-rules-2026) (accessed 12 July 2026) - [Anti-Money Laundering and Counter-Terrorism Financing Act 2006, section 26F](https://www.legislation.gov.au/C2006A00169/2026-06-04/2026-06-04/text/original/epub/OEBPS/document_1/document_1.html) (accessed 12 July 2026) - [AUSTRAC - Step 4: Review and update your AML/CTF program](https://www.austrac.gov.au/industry-and-business/obligations-and-guidance/your-amlctf-program/develop-your-amlctf-programs/step-4-review-and-update-your-amlctf-program) (accessed 12 July 2026) Before publishing, re-check the current AUSTRAC guidance and the agency's specific transitional position. This article is general information only and is not legal, financial or compliance advice.