AML/CTF Real Estate Laws Explained | Empire Property
From 1 July 2026, Australia’s property industry entered a new era with the introduction of Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) requirements for real estate professionals.
If you’re planning to buy or sell property, you may notice that your real estate agent now asks for identification and additional information as part of the sales process. While this may be new for many people, these requirements are designed to protect both consumers and the integrity of Australia’s property market.
Here’s what you need to know.
Why Have These Laws Changed?
For many years, banks, financial institutions and other regulated industries have been required to verify their customers’ identities and monitor transactions to help prevent money laundering and other financial crime.
From 1 July 2026, these obligations have been extended to the real estate industry. This means licensed real estate agencies must complete Customer Due Diligence (CDD) and meet a range of AML/CTF obligations before progressing certain property transactions.
While this introduces a few additional steps, the goal is simple: to make Australia’s property market safer, more transparent and more secure.
Why Is My Real Estate Agent Asking for ID?
One of the most common questions we’re hearing is:
“Why do I suddenly need to provide identification to my real estate agent?”
The answer is straightforward. Under the new legislation, real estate agencies are legally required to verify the identity of their clients before carrying out certain real estate services.
These checks help confirm that everyone involved in a transaction is who they say they are and assist in reducing the risk of fraud, identity theft, money laundering and other illegal activity.
For most people, the process is quick, secure and very similar to the identification checks already completed when opening a bank account or applying for finance.
What Does This Mean for Sellers?
If you’re appointing an agent to sell your property, you’ll be asked to complete identity verification before your property can be advertised for sale.
Depending on your circumstances, this may include providing:
- An Australian or foreign passport
- An Australian driver’s licence
- A proof of age card or other approved identification
- Additional documents where required
If the property is owned by a company, trust or another legal entity, your agent may also need information about the individuals who ultimately own or control that entity, known as the beneficial owners.
Completing these checks promptly helps ensure your property can proceed to market without unnecessary delays.
What Does This Mean for Buyers?
For most residential property transactions, buyers will be asked to complete Customer Due Diligence after their offer has been accepted.
This process may include:
- Verifying your identity
- Confirming your personal details
- Understanding the purpose of the transaction
- Determining whether additional information is required based on the level of risk
In some circumstances, your agent may ask for information about the source of funds or the source of wealth used to complete the purchase. This won’t apply to every transaction but may be required where the legislation identifies a higher level of risk.
As part of their legal obligations, real estate agencies must also complete sanctions screening and determine whether a client is considered a Politically Exposed Person (PEP), as required under Australia’s AML/CTF framework.
Will This Delay My Sale or Purchase?
For most buyers and sellers, the answer is no.
The majority of identity checks can be completed quickly using secure electronic verification systems, with many taking only a few minutes to finish.
The easiest way to avoid delays is to complete any requested verification as soon as possible. Your agent will explain exactly what information is required and guide you through the process.
Is My Information Secure?
Yes.
Real estate agencies are required to comply with strict privacy obligations when collecting, storing and handling your personal information.
Identity documents and other information collected as part of AML/CTF compliance are used solely to meet legal requirements and are managed in accordance with Australian privacy legislation and the agency’s privacy obligations.
What Happens If I Don’t Complete the Required Checks?
Because these requirements are now part of Australian law, real estate agencies cannot simply choose to bypass them.
If the required Customer Due Diligence cannot be completed, an agency may be unable to provide certain services or continue acting in relation to the transaction until its legal obligations have been met.
For this reason, it’s important to complete any requested verification as early as possible.
We’re Here to Make the Process Simple
While these new requirements introduce an extra step when buying or selling property, they are designed to protect everyone involved in the transaction and strengthen confidence in Australia’s property market.
At Empire Property, we’re committed to making the process as straightforward as possible. We’ll explain what’s required, answer any questions you may have and guide you through each step with professionalism and care.
If you’re thinking about buying or selling property and would like to understand how the new AML/CTF requirements apply to your situation, we’d be happy to help.
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