From 1 July 2026, Australia’s anti-money laundering and counter-terrorism financing laws now apply to a wider range of professionals involved in property transactions, including real estate agents, buyer’s agents and some property developers.
These reforms are part of Australia’s expanded AML/CTF regime, often referred to as Tranche 2, and are designed to help prevent criminals from using property transactions to disguise or move illicit funds.
What has changed?
Real estate professionals who provide designated services, such as brokering the purchase, sale or transfer of real estate, are now required to meet new AML/CTF obligations.
This means agencies may need to complete customer due diligence checks before, during or as part of a property transaction. These checks are designed to confirm who the relevant parties are, understand the nature of the transaction and identify any higher-risk factors that may require further review.
Importantly, AUSTRAC guidance confirms that when a real estate agent is brokering the sale, purchase or transfer of real estate, the customer may include both the seller and the buyer. This means checks may be required for both sides of the transaction, even where the agent is only directly acting for one party.
What information may buyers and sellers be asked to provide?
Depending on the circumstances, buyers and sellers may be asked to provide information such as:
- full legal name
- date of birth
- residential address
- identification documents
- details about whether they are acting for themselves or on behalf of another person or entity
- information about companies, trusts or other structures involved in the transaction
- source of funds or source of wealth information, where required
- details to assist with politically exposed person or sanctions screening
For many straightforward residential property transactions, this may feel similar to other identity checks already completed during the sale or conveyancing process. However, in higher-risk situations, additional information may be required before the transaction can proceed.
Why have these laws been introduced?
Property is a high-value asset and can be attractive to criminals seeking to launder money, hide unexplained wealth or move funds through legitimate systems.
AUSTRAC has identified the real estate sector as a high money laundering risk in Australia. These new obligations are intended to help real estate professionals identify suspicious activity earlier and reduce the risk of the property market being misused for financial crime.
What does this mean for property clients?
For buyers and sellers, the main practical change is that additional checks may now form part of the property transaction process.
This does not mean that every transaction is suspicious. It simply means that real estate professionals are now required to take reasonable steps to know their customers, assess risk and keep appropriate records.
If you are buying or selling property, it is important to respond promptly to any requests for identification or supporting information. Delays in providing the required information may impact how quickly an agent, conveyancer or other professional can progress the matter.
What does this mean for real estate agencies?
Real estate businesses that provide designated services must now have systems, policies and procedures in place to meet their AML/CTF obligations.
This may include:
- enrolling with AUSTRAC
- maintaining an AML/CTF program
- appointing an AML/CTF compliance officer
- conducting customer due diligence
- monitoring for suspicious activity
- reporting suspicious matters where required
- keeping appropriate records
- training staff on AML/CTF responsibilities
Newly regulated businesses are required to enrol with AUSTRAC by 29 July 2026, although the legal obligations commenced on 1 July 2026.
A new step in the property transaction process
These changes represent a significant shift for the Australian property sector, but they are now part of the standard compliance environment for real estate transactions.
For buyers and sellers, the key takeaway is simple: identity and risk checks are now a normal part of the property process. Having the right information ready can help keep your transaction moving smoothly.
This article is general information only and should not be taken as legal advice. For specific guidance, property professionals and clients should refer to AUSTRAC’s official AML/CTF guidance or seek independent professional advice.
