AML/CTF changes – what this means for our clients
Important Changes to Real Estate Transactions from 1 July 2026
From 1 July 2026, Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) requirements introduces significant regulatory changes that will affect the way real estate agencies engage with their clients during the buying, selling, and leasing process.
These reforms extend AML/CTF obligations to real estate professionals, requiring agencies to comply with new customer identification, verification, and risk assessment requirements. As a reporting entity under the AML/CTF regime, our agency is legally required to undertake Customer Due Diligence (CDD) before providing certain designated real estate services.
This means we will need to verify the identity of our clients, understand who owns or controls entities such as companies and trusts, assess the level of risk associated with a transaction, and, in some circumstances, obtain additional information such as the source of funds or source of wealth.
These requirements are designed to protect the integrity of Australia’s property market by helping prevent money laundering, terrorism financing, and other serious financial crimes.
We understand that providing personal information may be unfamiliar to some clients. Our team is committed to making the process as straightforward, secure, and efficient as possible. All information collected is handled in accordance with the AML/CTF Act and Australia’s privacy legislation, ensuring your personal information is protected throughout the process.
This does not mean we have suddenly become a financial crime investigator.
It means we are legally required to complete compliance steps as part of the transaction process.
By working together to meet these legal obligations, we can ensure your property transaction proceeds smoothly while maintaining the highest standards of compliance and professionalism.
Where it fits in your property transaction
For Sellers
If you’re selling, you’ll also need to verify your identity: just like a buyer, sellers will provide basic ID so your agent can correctly record the details of the transaction.
The AML/CTF process begins when you sign the agency agreement (listing agreement). Your identity must be verified and the required Customer Due Diligence (CDD) completed before your property can be marketed for sale.
For Buyers
When you’re purchasing a property, you’ll be asked to verify your identity: This might include presenting photo ID like a driver licence or passport so your agent can confirm who you are.
The AML/CTF process generally begins once your offer to purchase a property is accepted. Customer Due Diligence (CDD) must be completed as soon as reasonably practicable and no later than 15 days after the exchange of contracts or before settlement, whichever occurs first.
Your agent may ask about your source of funds, especially if the transaction is higher risk, agents will need to understand where funds are coming from to meet their legal obligations. This is a standard compliance requirement and is not a judgement on your client or the deal.
Completing these checks early helps avoid delays and ensures the transaction complies with Australia’s AML/CTF legislation.
What information may we ask you to provide?
Below is an indication of some of the documents your real estate agent may ask you to present in person or as a certified document as part of the CDD process:
Individuals
Australian or foreign passport, Australian driver’s license, Australian proof of age card, or a foreign identity card.
You may also be able to use an Australian birth certificate, citizenship certificate, Medicare card, concessions card or veteran card.
Trusts
The Trust Deed and, for key position owners and beneficial owners.
Companies
Details of the company, together with the information for individuals noted above for every beneficial owner (owns or controls 25 per cent or more of the company).
Note: The above information is not exhaustive and is indicative only. Your real estate agent will assist you with the specific requirements relating to your transaction.
If client had sold with us before
Many of our clients have worked with us on multiple transactions over the years, and we genuinely value those long-standing relationships.
While we may already know our client and have assisted them previously, the new legislation commencing 1 July 2026 requires all real estate agencies to complete identity verification and Customer Due Diligence (CDD) for every applicable property transaction.
This means the same process applies to all clients, whether it is your first transaction with us or tenth. These requirements are set by legislation and cannot be waived, even for existing or repeat clients.
The good news is that the process is straightforward, and our team will guide you through each step to ensure everything is completed quickly and efficiently. Our focus remains on making your property journey as smooth and seamless as possible.