From 1 July 2026, new Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) laws will apply to real estate transactions across Australia.
If you’re buying or selling property, you may notice some additional verification requirements during the process. These changes are designed to strengthen consumer protection, improve transparency and help safeguard the integrity of Australia’s property market.
While there may be a few extra steps involved, for most buyers and sellers the process will remain straightforward and simply become another routine part of a property transaction.
At First National Real Estate Forster-Tuncurry, we are already preparing for these changes and will be ready to guide our clients through every step of the process.
What Are the New AML Laws?
Australia is expanding its Anti-Money Laundering and Counter-Terrorism Financing framework to include real estate professionals.
The new legislation will require real estate agencies to undertake additional identity verification and compliance checks when assisting clients with property transactions.
The objective is to:
- Prevent money laundering
- Reduce financial crime
- Improve transparency in property transactions
- Strengthen consumer protection
- Align Australia with international compliance standards
The new requirements will commence on 1 July 2026.
Why Are These Changes Being Introduced?
Property transactions often involve significant sums of money, making the sector vulnerable to misuse by individuals attempting to conceal the origins of illegally obtained funds.
The new laws introduce additional safeguards to help ensure property transactions remain legitimate, transparent and secure.
These types of requirements already exist in industries such as banking, finance and legal services and are now being extended to the real estate sector.
Who Will Be Affected?
The new requirements may apply if you are:
- Buying a property
- Selling a property
- Acting through a company
- Acting through a trust
- Acting on behalf of another person
In short, most people involved in a property transaction will notice some additional verification requirements.
What Will Buyers Need to Provide?
Depending on the transaction, buyers may be asked to provide:
- Identification documents
- Information regarding the purchasing entity
- Details about the source of funds being used
- Additional supporting documentation where required
The exact information requested will vary depending on the nature of the transaction.
What Does “Source of Funds” Mean?
One of the new requirements may involve confirming where the money used to purchase a property has originated.
Common examples include:
- Personal savings
- Proceeds from the sale of another property
- Inheritance
- Business income
- Investments
- Superannuation funds (where applicable)
These questions are designed to satisfy legal compliance obligations and help ensure transactions comply with Australian law.
What Will Sellers Need to Provide?
Sellers may be required to provide:
- Identification documents
- Proof of ownership
- Authority to act on behalf of another person
- Company information (where applicable)
- Trust documentation (where applicable)
Many sellers will already be familiar with parts of this process, as real estate agencies currently undertake identity verification under existing NSW Fair Trading requirements.
Why Is My Real Estate Agent Asking for Identification?
Under the new AML legislation, real estate agencies will be legally required to verify the identity of their clients.
This may include requesting:
- Driver Licence
- Passport
- Proof of Address
- Company Documents
- Trust Documentation
Think of it in the same way as opening a bank account or applying for finance. Identity verification is becoming a standard requirement designed to protect all parties involved in a property transaction.
Is My Information Safe?
Yes.
Protecting personal information remains a priority.
Any information collected will be:
- Stored securely
- Protected under privacy laws
- Used only for compliance purposes
- Accessed only by authorised personnel
- Managed in accordance with Australian privacy legislation
These requirements are intended to improve security and consumer protection while maintaining strict privacy standards.
Will Buying or Selling Property Become More Difficult?
No.
For most buyers and sellers, the additional checks will simply become another routine step in the property transaction process.
The majority of transactions are expected to proceed exactly as they do today, with only minor additional documentation requirements.
Our role remains unchanged: to guide you through the process and make your property journey as smooth and straightforward as possible.
Frequently Asked Questions About the New AML Laws
When do the new AML laws start?
The new Anti-Money Laundering and Counter-Terrorism Financing requirements for real estate transactions commence on 1 July 2026.
Will buyers need to provide identification?
In most cases, buyers will be required to verify their identity and may need to provide supporting documentation relating to the purchase.
Will sellers need to provide identification?
Yes. Sellers will generally be required to verify their identity and ownership of the property being sold.
What documents can be used to verify identity?
Common documents include a Driver Licence, Passport, Proof of Address, Company Documents and Trust Documentation.
What is source of funds?
Source of funds refers to where the money used for a property transaction originated, such as savings, inheritance, investments, business income or proceeds from another property sale.
Are these laws only for NSW?
No. The changes are being introduced across Australia and will affect property transactions nationwide.
Will the new requirements delay settlement?
For most transactions, any impact is expected to be minimal. Providing requested documentation promptly will help ensure a smooth process.
How First National Real Estate Forster-Tuncurry Is Preparing
The real estate industry is preparing well ahead of the commencement date to ensure a smooth transition for buyers and sellers.
At First National Real Estate Forster-Tuncurry, we are already reviewing our systems, processes and procedures to ensure compliance while continuing to provide the high level of service our clients expect.
As these changes roll out, you may notice us requesting a little more information than we have in the past.
It is not because we do not trust you.
It is because we are required to meet new legal obligations designed to protect consumers and strengthen the integrity of Australia’s property market.
If you have questions about the upcoming AML changes or how they may affect your next property purchase or sale, our team is here to help.