Anti - Money Laundering legislation to affect real estate sales from
1 July 2026
What you need to know...
From 1 July 2026 real estate agents will be required to carry out Customer Due Diligence CDD on buyers and sellers.
This is in accordance with new Anti-Money Laundering/Counter-Terrorism Financing Legislation (AML/CTF).
These checks are legal requirements, imposed by the Australian government.
What does this mean?
- It will involve verifying your identity
- Determining whether you are a politically exposed person or on sanctions lists
The agent may ask you
- Your reasons for buying or selling the property
- In some cases, will be required to ask about your source of funds or wealth
If you are buying or selling a property via a trust or company, the agent will need to confirm the beneficial owners of the property.
Selling property
For sellers – a CDD will be carried out when you list a property to sell with an agent. The property cannot be advertised until CDD is complete.
Buying property
For buyers – once your offer is accepted on the purchase of a property the agent will have to do a CDD.
What documents will I be asked to provide?
Below is an indication of some of the documents your real estate agent may ask you to present in person or as a certified document.
Individuals
-
Australian or foreign passport
- Australian driver's licence
- Australian proof of age card or foreign identity card
You may also be able to use an Australian birth certificate, citizenship certificate, Medicare card, concession card or veteran card.
Trusts
The Trust Deed and, for key position owners and beneficial owners, the information required for individuals as noted above.
Companies
Details of the company, together with the information for individuals noted above for every beneficial owner (owns or controls 25 per cent or more of the company).
Frequently asked questions
1. Why is Anti-Money Laundering/Counter-Terrorism Financing (AML/CTF) legislation being applied to real estate?
Property can be used as a vehicle to launder money. Transactions are high value, so can be used for large sums of money; real estate is tangible; and can be made to look like a legitimate transaction. And, unlike some other known avenues for money laundering, property can deliver a profit.
The legislation aims to prevent money laundering via the buying and selling of real estate.
You can read more about the AML/CTF reforms here
2. When does the AML/CTF legislation come into effect?
The AML/CTF legislation comes into effect on 1 July 2026.
3. What does the AML/CTF legislation apply to?
The legislation applies to the buying and selling of property, including residential, rural, land, off-the-plan, and commercial property. Real estate agents and settlement agents have obligations to comply with the legislation.
It does not apply to renting residential property or commercial leasing.
4. What does the legislation mean for me?
The AML/CTF legislation requires real estate agents, including buyer’s agents, to carry out a number of checks on the buyers and sellers of property.
These checks are called customer due diligence (CDD). They may also be called know your customer (KYC).
This means that if you’re buying or selling property as an individual, trust, or company, your real estate agent is legally required to:
- verify your identity
- ask about the purpose of the transaction
- check if you are a politically exposed person or on a sanctions list
- and, in some cases, request information about your source of funds or wealth.
Your settlement agent will also have to do CDD.
5. What does the legislation mean for me as a seller?
From 1 July 2026, your agent will be required to do CDD when you engage them to sell your property. They will be unable to advertise the property for sale until CDD is complete.
They will not need to do CDD if you signed a listing agreement before 1 July 2026.
6. What does the legislation mean for me as a buyer?
When you buy a property, the selling agent will have to do CDD on you once your offer to purchase the property is accepted. However, in some cases, the agent may be able to rely on customer due diligence done by your settlement agent.
If your offer was accepted before 1 July 2026, your real estate agent will not need to do CDD. However, if the property settles after 1 July, your settlement agent will be required to conduct CDD.
After 1 July, if you engage a buyer’s agent to help you find a property, they will be required to carry out CDD before they can provide any service.
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