Why You May Be Asked For More Information When Buying or Selling Property

Understanding The New Anti-Money Laundering Requirements In The Real Estate Industry

If you are planning to buy or sell property,

you may soon find that real estate

professionals are asking for more

information than they have in the past.

This isn't because the process has become

more complicated. Rather, it reflects

significant changes to Australia's Anti-

Money Laundering and Counter-Terrorism

Financing (AML/CTF)

laws, which are expanding to include the

real estate industry from 1 July 2026.

While the changes introduce new

responsibilities for real estate agencies, the

impact on most buyers and sellers should

be relatively straightforward. In many

cases, it will simply become

another part of the property transaction

process, much like signing contracts,

verifying identity, or completing seller

disclosure requirements.

Why Are These Changes Being Introduced?

Australia's AML/CTF framework has existed

for many years and already applies to

industries such as banking and financial

services.

The reforms expand these obligations to

additional industries, including:

• Real estate agencies

• Buyer’s agents

• Lawyers

• Conveyancers

• Accountants

• Dealers in precious metals and stones

The objective is to improve transparency

and help prevent criminal activity,

including money laundering, terrorism

financing, and other financial crimes.

Property transactions often involve

significant sums of money, making the

industry an important part of Australia's

broader efforts to maintain a secure and

transparent financial system.

What Does This Mean For Buyers and Sellers?

For most people, the changes will not

fundamentally alter the buying or selling

experience.

You may be asked to provide additional

information during the transaction process,

including:

• Identification documents

• Information relating to ownership

  structures

• Trust or company documentation

• Information regarding the source of

  funds used for a purchase

• Additional supporting documentation

  where required

The exact requirements will depend on the

circumstances of the transaction and the

individuals or entities involved.

For example, a property purchased through

a family trust may require different

documentation to a property purchased by

an individual.

Why Is Identification Becoming More Important?

One of the key responsibilities under the

new legislation is for real estate

professionals to better understand who

they are acting for and who is involved in a

transaction. This process is

known as customer due diligence.

In practical terms, it means agencies may

need to verify:

• The identity of buyers and sellers

• The ownership of companies and

  trusts

• The individuals behind certain

  ownership structures

• The source of funds being used in

  some transactions

For the vast majority of genuine buyers and

sellers, these checks should be routine and

straightforward.

What About Privacy?

It is understandable that some people may

be concerned about providing additional

personal information.

Importantly, the new requirements are

accompanied by privacy obligations that

place responsibilities on businesses

regarding the collection, storage, and

handling of personal information.

Businesses are generally expected to collect

only the information reasonably required to

meet their obligations and to handle that

information appropriately.

As these requirements become part of

everyday real estate practice, professional

agencies will need to balance compliance

obligations with the privacy expectations of

their clients.

Frequently Asked Questions

What is AML/CTF?

AML/CTF stands for Anti-Money

Laundering and Counter-Terrorism

Financing. These laws are designed to help

detect and prevent financial crime by

requiring businesses to identify

clients, assess risks, and report suspicious

activity where required.

Will all buyers and sellers be affected?

Most buyers and sellers will encounter

some level of additional identification or

verification requirements. However, for the

majority of people, these checks should be

straightforward and become a routine part

of the transaction process.

Will I need to provide identification to a

real estate agent?

In many cases, yes. Agencies may be

required to verify the identity of clients as

part of their AML/CTF obligations.

What if I am purchasing or selling

through a trust or company?

Additional documentation may be required

to verify ownership structures and identify

the individuals associated with those

entities.

Will I be asked where my money is

coming from?

Depending on the circumstances of the

transaction, agencies may need to

understand the source of funds being used

for a purchase. This is a standard part of

AML/CTF compliance and is

intended to support transparency within

the property industry.

How will my personal information be

protected?

Businesses remain subject to privacy

obligations and are generally expected to

collect only information reasonably

required to meet their legal obligations and

to store that information appropriately.

If you have any questions or would like to

discuss what the new requirements mean

for you, please contact

Matthew on: 0493 013 314