New AML/CTF requirements: what property buyers and sellers need to know

07 July 2026

Since 1 July 2026, Australian real estate agencies have been required to meet anti-money laundering and counter-terrorism financing obligations when providing regulated real estate services.

The reforms place real estate agencies within the same broad regulatory system that has long applied to banks and other regulated businesses. Although the legislation is detailed, the practical effect for most buyers and sellers is straightforward: agencies may need to confirm identity, ownership and authority, and may ask further questions where the circumstances require it.

What has changed?
Real estate agencies are now part of Australia’s AML/CTF framework. This means agencies must complete customer due diligence, keep appropriate records, assess money laundering and terrorism financing risk, and report certain matters to AUSTRAC.
For buyers and sellers, the most visible change is that an agent may need to obtain and verify more information before, or during, a property transaction. The checks are similar to those many people have completed with a bank, lender or financial services provider.

What information may be requested?
The information required will depend on who the client is, who is acting for them and the assessed risk. Not every client will be asked for exactly the same documents.
You may be asked to provide:

  • current identity documents
  • your residential address and date of birth
  • evidence that a person is authorised to act for another person or entity
  • company, trust, partnership or self-managed superannuation fund documents
  • details of beneficial owners – the individuals who ultimately own or control an entity
  • information about the purpose and nature of the transaction
  • information about the source of funds or source of wealth where the circumstances require it

Why are these checks required?
Property transactions involve large amounts of money and can be attractive to people seeking to disguise criminal proceeds. The reforms are intended to reduce that risk and help protect the integrity of Australia’s financial and property systems.
AUSTRAC is Australia’s financial intelligence agency and AML/CTF regulator. Real estate businesses must maintain an AML/CTF program with systems for customer due diligence, risk management, record keeping and regulatory reporting.

Will this delay a sale or purchase?
For most clients, the checks should be manageable and need not change the way a property is advertised, inspected, negotiated or settled. The additional work mainly occurs as part of client onboarding and compliance.
Delays are more likely when documents are missing, names do not match, an ownership structure is unclear, or further information is required. Companies, trusts, self-managed superannuation funds, overseas interests and representatives acting under authority can require extra documentation.
The best approach is to respond promptly and provide complete, current and clear information. If you are unsure what is required, ask the agency before sending documents.

Will every buyer be asked about their source of funds?
Source-of-funds and source-of-wealth checks are risk-based. An agency’s AML/CTF policies must explain when this information will be collected or verified, and the level of checking must be appropriate to the circumstances.
In some transactions, the source may be readily understood, such as a purchase funded by a loan from an Australian bank. In other cases, an agency may ask for further information about savings, business income, the sale of another property, a gift, an inheritance or another source.
A bank statement showing where money is held does not always establish how the money was obtained. If more information is required, the agency should explain what it needs.

What about privacy?
It is reasonable to ask why an agent needs personal or financial information. Agencies must collect information to meet legal obligations and must handle personal information in accordance with applicable privacy and information-security requirements.
At Arkley & Co, information requested for AML/CTF purposes is collected only as required for the relevant checks and is handled through our approved compliance processes.
These checks do not mean that a client is suspected of wrongdoing. They form part of a consistent process that applies across regulated real estate services.

How to be prepared

  • Have current identification ready and make sure the name matches the name to be used in the contract.
  • Tell the agent early if a company, trust, self-managed superannuation fund, estate, power of attorney or other representative is involved.
  • Keep entity and authority documents available, including trust deeds or company details where relevant.
  • Be ready to explain the general source of purchase funds if asked.
  • Respond promptly if the agency needs clarification or an updated document.
  • Use the agency’s approved method for supplying personal information rather than ordinary email where a secure option is available.

What this means at Arkley & Co
We understand that these requests may feel unfamiliar. Our aim is to explain what is needed, request information at the appropriate time and make the process as straightforward as possible.
The property sales process remains focused on clear communication, informed decisions and steady progress towards settlement. The AML/CTF checks are an additional legal requirement within that process.
If you are buying or selling with Arkley & Co and have questions about the information requested, please speak with our team. We can explain our process, although legal or financial questions should be directed to your solicitor, conveyancer, accountant or financial adviser.

A simple takeaway
The new requirements add checks to the real estate process, but they do not alter the fundamentals of listing, marketing, negotiating or settling a property. By having identification and ownership documents ready and responding promptly to reasonable requests, most clients should be able to complete the process without significant disruption.

Official information
AUSTRAC – About the AML/CTF reforms: https://www.austrac.gov.au/industry-and-business/about-amlctf-reforms
AUSTRAC – Real estate designated services: https://www.austrac.gov.au/new-austrac/designated-services-newly-regulated-entities/real-estate-designated-services
AUSTRAC – Initial customer due diligence: https://www.austrac.gov.au/industry-and-business/obligations-and-guidance/your-amlctf-program/customer-due-diligence/initial-customer-due-diligence/overview-initial-customer-due-diligence
AUSTRAC – Source of funds and source of wealth: https://www.austrac.gov.au/industry-and-business/obligations-and-guidance/your-amlctf-program/customer-due-diligence/source-funds-and-source-wealth

General information only. This article does not replace legal, financial, accounting or privacy advice. Requirements can vary according to the client, transaction and assessed risk. Information current at 30 July 2026.

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