From 1 July 2026, new Anti‑Money Laundering and Counter‑Terrorism Financing (AML/CTF) laws will apply to the real estate sector across Australia. Introduced by the Federal Government, these reforms align Australia with international standards and are designed to reduce the misuse of property transactions for illegal activity.
Here’s a clear overview of what’s changing and what it means for property sellers.
What’s Changing?
From 1 July 2026, real estate agencies and property professionals must comply with AML/CTF laws when assisting with the sale, purchase, or transfer of property. This includes:
- Customer Due Diligence (CDD/KYC): Agents are legally required to verify the identity of all sellers, including any beneficial owners when selling through a company or trust.
- Record‑Keeping: Agencies must keep detailed verification and transaction records.
- Reporting Requirements: Agents must report suspicious activity and certain types of transactions to AUSTRAC.
- Earlier ID Checks: Verification may take place at the time of listing, rather than later in the process.
What This Means for You as a Seller
You can expect the following during the listing process:
1. Identity Verification
Agents must verify your identity before formally listing your property. This may include:
- Government‑issued ID
- Documents confirming ownership structures (if applicable)
- Details of any beneficial owners for companies or trusts
2. Source of Funds / Proceeds Information
You may be asked about where settlement funds will be paid and the nature of the proceeds to support transparency and help avoid banking delays.
3. Additional Checks in Higher‑Risk Scenarios
If risk indicators arise (such as complex ownership structures), enhanced due diligence may be required. This is typically straightforward when documentation is provided promptly.
Will This Slow Down Your Sale?
In most cases, no.
These checks are designed to be quick and are increasingly supported by digital verification tools. Delays generally occur only if documents are incomplete or ownership structures are unusually complex.
Why These Changes Are Important
Property transactions are considered high‑risk for money laundering due to their high value. These reforms aim to improve transparency and reduce the risk of fraudulent or criminal activity in the market.
How We’ll Support You
We are preparing for the new legislation and will guide you through each requirement. The focus is on ensuring your experience is smooth, compliant, and free from unnecessary disruption.
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