New Anti-Money Laundering Laws

From 1 July 2026, buyer’s agents, real estate agents and property developers providing designated services must comply with AML/CTF obligations overseen by AUSTRAC. Significant Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms now apply to real estate professionals, including buyer’s agents.

While these changes may introduce some additional checks during the buying process, they are designed to strengthen Australia's property market and protect buyers, sellers and businesses from financial crime.

Why Are These Changes Happening?

For many years, banks and financial institutions have been required to identify customers and monitor transactions to prevent money laundering and criminal activity. The latest reforms extend similar obligations to industries considered vulnerable to financial crime, including real estate. These reforms aim to close this regulatory gap and align Australia with international standards.

What Will Buyers Notice?

Byers may notice some additional compliance requirements during the purchasing process. These may include:

• Earlier Identity Verification

  Buyer’s agents will be required to verify a client's identity before providing certain services. This means you may be asked for identification documents at the beginning of your property search rather than later in the transaction.

• Source of Funds Checks

  Buyers may be asked to explain where their purchase funds originated, whether from savings, employment income, the sale of another property, an inheritance or a loan facility.

• Additional Information for Trusts and Companies

  Where a property is being purchased through a trust, company or other legal structure, additional documentation may be required to identify the individuals who ultimately own or control the entity.

• Enhanced Due Diligence in Higher-Risk Situations

  In certain circumstances, such as complex ownership arrangements or international transactions, additional verification may be required to satisfy compliance obligations.

What Does This Mean for BAT?

The new reforms place greater responsibility on buyer’s agents to understand their clients, assess risk and maintain appropriate records. Businesses providing designated services must implement AML/CTF programs, conduct customer due diligence and meet AUSTRAC reporting obligations.  

For real estate professionals and buyer’s agents, these changes represent an opportunity to further strengthen trust and transparency throughout the property purchasing process. By adopting these new compliance practices, agencies can help protect both their clients and the broader property market.  

Will Property Transactions Take Longer?

For most buyers, the answer is likely no. Provided required documents are supplied promptly, many verification processes can be completed quickly using digital identification systems and standard documentation. Delays are more likely to occur when information is incomplete, or ownership structures are particularly complex.

The key is preparation. Having identification and financial documents ready early can help ensure a smooth transaction.  

So, What Now?

As buyer’s agents, we are committed to helping our clients navigate these changes with confidence. By understanding the new requirements and preparing ahead of time, buyers can continue to focus on what matters most, finding the right property and securing their next investment or home.