New AML laws commence 1 July: What property buyers and sellers need to know
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In a significant move to fortify the Australian property market against financial crime, new anti-money laundering and counter-terrorism financing (AML/CTF) laws are set to take effect from 1 July 2026. This legislative change will introduce crucial modifications to the processes involved in buying and selling property across the nation.
The Real Estate Institute of Australia (REIA) has been at the forefront of this transition, with its CEO, Scott Rollason, highlighting the importance of these reforms. “From 1 July, real estate professionals are required to take reasonable steps to identify and verify the identity of their customers,” Mr Rollason explained. He further elaborated, “In some circumstances, agents may also need to ask additional questions about the source of funds or source of wealth, as well as the nature of the transaction. These are now standard legal requirements across the industry.”
These changes will bring the real estate sector under Australia’s AML/CTF regime, aligning it with other designated services and international standards. Mr Rollason stressed the significance of these reforms in safeguarding the community, noting that “money laundering is not a victimless crime. It is often linked to serious criminal activity including drug trafficking, corruption, child exploitation and human trafficking.”
The reforms aim to make it more challenging for criminals to exploit property transactions for laundering illicit funds, thereby bolstering the integrity of Australia’s economy. As part of the new requirements, customers engaging with real estate agents may be asked to provide identification, confirm personal and contact details, and provide additional documentation if necessary.
“For example, a buyer may be asked how funds for a property purchase were obtained — whether through salary, savings, investments, gifts or the sale of assets,” Mr Rollason stated. He added, “In some cases, agents may also need to understand a customer’s broader source of wealth.”
These checks, Mr Rollason emphasised, are a normal part of the new requirements and do not indicate any issue with a customer or transaction. “Even if you’ve bought or sold property before, or have an existing relationship with your agent, you can expect these processes to apply,” he noted.
The real estate industry has shown commendable readiness for these reforms. Mr Rollason expressed gratitude towards real estate professionals across Australia for their proactive approach. “We want to thank real estate professionals across Australia for taking these reforms seriously and working diligently to prepare in a short period of time,” he said.
The industry has demonstrated strong engagement, with significant enrolment levels with AUSTRAC, the Australian Transaction Reports and Analysis Centre. “Real estate is leading tranche two industries in participation, reflecting a high level of readiness across the sector,” Mr Rollason remarked.
He also acknowledged the pivotal role played by the State and Territory Real Estate Institutes in supporting their members over the past year. “They have played a critical role in ensuring the industry is informed, prepared and ready to meet its new obligations from day one,” Mr Rollason said. He urged those who have not yet enrolled or finalised their preparations to take immediate action.
Moreover, Mr Rollason acknowledged the extensive work undertaken by AUSTRAC in implementing these reforms. “We recognise and thank AUSTRAC for their extensive consultation and ongoing engagement with industry to ensure these reforms are practical and effective,” he said. The REIA and the State and Territory Real Estate Institutes are committed to supporting members through the implementation process, ensuring the industry contributes effectively to reducing the harm caused by financial crime.
As the 1 July deadline approaches, both buyers and sellers in the property market will need to familiarise themselves with these new requirements. The changes signify a critical step in enhancing the transparency and security of property transactions in Australia, reflecting a broader commitment to combating financial crime on a global scale.