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After nearly two decades of delay, the Albanese government is set to expand money-laundering reporting obligation laws to cover real estate agents, lawyers and accountants, with the potential that 100,000 extra entities will have reporting obligations if the legislation is passed. In 2003, Australia agreed to implement so-called 'Tranche 2' global anti-money laundering (AML) rules for real estate gatekeepers such as accountants, lawyers, and real estate brokers. Following strong opposition from the professions affected by the laws, the federal government under both administrations repeatedly postponed their implementation. This has left Australia with some of the world's weakest AML requirements for property, cementing Australian homes as a 'honeypot' for laundering dirty foreign money. Advertisement "For far too long, Australia has been a very attractive destination for dirty money", says Clancy Moore of anti-corruption group Transparency International Australia. Attorney-General Mark Dreyfus believes that implementing the reforms will help stop dirty money. "Each year billions of dollars of illicit funds are generated from illegal activities such as drug trafficking, tax evasion, people smuggling, cybercrime, arms trafficking and other illegal and corrupt practices", Dreyfus said on Monday. Advertisement "As a result of the former government's failure to act, Australia is falling short of meeting the standards required to combat criminal abuse of our financial system, and at increased risk of becoming a haven for money laundering". Financial crimes agency AUSTRAC will receive $166.4 million in the upcoming federal budget to help educate professions under "Tranche 2" laws. AUSTRAC estimates that criminals linked to China laundered $1 billion through Australian real estate in 2020 alone. The reforms are critical in supporting law enforcement partners in their fight against transnational, serious, and organised crime and protecting Australians. Advertisement As usual, the Real Estate Institute of Australia claims that expanding money-laundering obligations to cover real estate agents would impose an overwhelming burden on them, and that the legislation should instead expand the reporting obligations of land registry bodies. It contends that not all real estate transactions are handled by real estate agents. "It shouldn't be on real estates agents. This currently doubles up with lawyers - the burden of reporting is much higher than the benefit", REIA chief executive Leanne Pilkington said. Likewise, the Law Council of Australia claims the reforms risk jeopardising legal professional privilege since they could force lawyers to disclose clients' confidential information. Advertisement "Legal professional privilege is an important privilege of the client. Everyone is entitled to have confidential and privileged communications with their legal advisers". "These fundamental elements of Australia's justice system, and the rule of law, must be respected", Law Council president-elect Juliana Warner said. Given the Tranche-2 AML laws have been left in the 'too hard' basket for two decades amid furious lobbying from vested interests, the Albanese government will achieve something special if it finally enacts the rules. Next, the Albanese government should reverse Labor's short-sighted decision in 2009 to allow temporary migrants to purchase existing homes. Advertisement Only citizens and permanent residents should be permitted to purchase established Australian housing.