What to expect from AML/CTF compliance when buying or selling

From 1 July 2026, real estate businesses providing designated services in Australia have to follow AML/CTF obligations, which include customer due diligence and related compliance requirements. The purpose is simple: to improve transparency in property transactions and help protect the property market from being used for criminal activity.

Why are these changes happening?
For years, banks and financial institutions have had to verify customers and monitor transactions for suspicious activity. The Australian Government is now extending similar obligations to other industries involved in large financial transactions, including real estate professionals.
This is often referred to as “Tranche 2” of the AML/CTF reforms, and it means real estate agencies will now need to comply with a broader regulatory framework. These checks are not designed to make the process harder. They are part of the legal requirements now applying to real estate transactions. For more information about how we handle these obligations, please visit our Anti-Money Laundering Compliance page.

What will buyers and sellers notice?
For most clients, the process will still feel familiar. The main difference is that agencies may need to ask for extra information earlier in the transaction.
You may be asked to provide:
– identification documents such as a driver licence or passport;
– proof of address;
– ownership details if a company, trust, or SMSF is involved; and in some cases, information about the source of funds.

What does this mean for property transactions?
Real estate agencies will need to put compliance processes in place before providing certain regulated services. That may include enrolling with AUSTRAC, maintaining an AML/CTF program, verifying clients, monitoring for suspicious activity, and keeping required records.