From 1 July 2026, significant changes are coming to the Australian real estate industry under the Anti-Money Laundering and Counter Terrorism Financing Act 2006 (AML/CTF Act).
For the first time, all residential real estate agencies across Australia will be legally required to conduct identity verification and anti-money laundering checks on clients involved in property transactions.
While this may feel like “more paperwork,” the changes are designed to improve transparency, reduce financial crime, and protect the integrity of Australia’s property market.
Here’s what you need to know.
What Are the New AML Laws?
Under the updated AML/CTF legislation, real estate agencies must verify the identity of clients before providing designated services such as:
- Buying property
- Selling property
- Long-term leasing arrangements
- Certain other property-related transactions
This means agencies will need to collect and verify information about:
- Individuals
- Companies
- Trusts
- Partnerships
- Charities
- Beneficial owners and controllers behind entities
In short: agencies must understand who they are dealing with and where funds are coming from.
Why Are These Changes Being Introduced?
Real estate has long been recognised globally as a sector vulnerable to money laundering and financial crime.
The new laws aim to:
- Prevent criminal activity through property transactions
- Increase transparency around ownership structures
- Align Australia with international AML standards
- Protect legitimate buyers, sellers, and investors
The legislation applies nationwide and impacts all real estate agencies — not just large corporations or high-value transactions.
What Information Will Clients Need to Provide?
For Individuals
Clients may be asked to provide:
- Full legal name
- Date of birth
- Residential address
- Government-issued identification
(such as a driver’s licence or passport)
Additional documentation may also be requested, including:
- Evidence of source of funds
- Evidence of source of wealth
For Companies
Where a company is involved in a transaction, agencies may need:
- Confirmation of directors and shareholders
- Information about the company’s purpose
- Constitution or shareholder agreements
- Details of beneficial owners or effective controllers
For Trusts
If a trust is involved, agencies may request:
- A copy of the trust deed
- Information about trustees and beneficiaries
- Details of any non-discretionary beneficiaries
In some cases, directors, shareholders, trustees, and beneficiaries may also need to verify their identities individually.
Frequently Asked Questions
Why is the agency asking for my personal information?
From 1 July 2026, all real estate agencies in Australia are legally required to verify the identity of clients before providing services under the AML/CTF Act.
This includes collecting information such as your:
- Name
- Date of birth
- Residential address
- Identification documents
Is this just your agency’s policy?
No.
These requirements are set by the AML/CTF Act and apply to all real estate agencies across Australia, along with other industries such as legal and accounting services that provide designated services.
Why do you need information about my company or trust?
If a company, trust, partnership, or charity is involved in a transaction, agencies are required to understand:
- The nature and purpose of the entity
- Who owns or controls it
- Who benefits from it
This helps ensure transparency and compliance with federal legislation.
Is providing this information mandatory?
Yes.
If a client chooses not to provide the required information, agencies may be unable to proceed with onboarding or providing services related to buying, selling, or leasing property.
What happens to my information?
The information collected will only be used for AML/CTF compliance purposes, including identity verification.
Many agencies will securely store this information using specialist compliance platforms designed for the real estate industry.
How long will agencies keep this information?
Under the AML/CTF Act, agencies are required to retain records for seven years.
What if I’ve worked with the agency before?
Even long-term or repeat clients will still need to complete AML checks.
In many cases, agencies may simply need to update existing information already on file.
No one gets a “skip the queue” pass anymore — even if you’ve bought and sold five homes with the same agent over the years.
What This Means for Buyers & Sellers
For most people, the changes simply mean an extra compliance step at the beginning of a transaction.
To help avoid delays, clients should be prepared to:
- Provide identification promptly
- Supply entity documents where required
- Answer questions about ownership structures or funding sources
The good news is that many agencies are implementing secure digital systems to make the process quick and straightforward.
The Future of Real Estate Compliance
The introduction of AML laws marks one of the biggest compliance shifts the Australian real estate industry has seen in years.
While the process may feel unfamiliar initially, these changes are designed to create a safer, more transparent property market for everyone involved.
As the 1 July 2026 commencement date approaches, buyers, sellers, investors, and property owners can expect AML verification to become a standard part of every property transaction — much like signing contracts or confirming finance.
And yes… your real estate agent may soon know more about your trust structure than your accountant does.