Blog
Category

Australia’s New AML Reforms: What Property Buyers and Sellers Need to Know in 2026

Australia’s real estate industry is entering a new era of compliance and transparency. As part of the Federal Government’s efforts to strengthen anti-money laundering controls and align with international standards, significant reforms to Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime are being rolled out.

For property buyers, sellers, and real estate professionals, understanding these changes is becoming increasingly important.

Why Are These Changes Happening?

For many years, Australia’s real estate sector has been identified as a potential vulnerability in the nation’s anti-money laundering framework.

International organizations, including the Financial Action Task Force (FATF), have recommended that Australia extend AML obligations to professions involved in property transactions, including:

  • Real estate agencies
  • Lawyers and conveyancers
  • Accountants
  • Trust and company service providers

The reforms aim to:

  • Prevent money laundering through property transactions
  • Combat terrorism financing
  • Increase transparency of ownership structures
  • Protect the integrity of Australia's property market
  • Bring Australia in line with global AML standards

What Has Changed?

The Australian Parliament has passed legislation expanding AML/CTF obligations to what are known as "Tranche 2" industries, including real estate services.

This means real estate agencies will be required to implement formal AML compliance programs and conduct customer due diligence before providing certain services.

Key requirements include:

1. Customer Identification and Verification

Real estate agencies must verify the identity of their clients.

This applies to:

  • Property sellers
  • Buyers (where applicable)
  • Individuals acting on behalf of others
  • Companies
  • Trusts
  • Foreign entities

Clients may be asked to provide:

  • Passport
  • Driver licence
  • Proof of address
  • Company registration documents
  • Trust deeds
  • Beneficial ownership information

2. Risk Assessment

Agents will need to assess the risk level of each client and transaction.

Factors considered may include:

  • Source of funds
  • Ownership structure complexity
  • International connections
  • Politically Exposed Persons (PEPs)
  • Unusual transaction behaviour

Higher-risk transactions may require enhanced due diligence.

3. Record Keeping

Real estate agencies must maintain records relating to:

  • Identity verification
  • Risk assessments
  • Client communications
  • Transaction information

These records must be retained for prescribed periods under the AML legislation.

4. Reporting Obligations

Businesses covered by the AML regime may be required to report certain matters to AUSTRAC, including:

  • Suspicious activities
  • Threshold cash transactions
  • Compliance-related information

These reporting obligations are designed to assist law enforcement and financial intelligence agencies in detecting criminal activity.

What Does This Mean for Property Sellers?

If you are selling a property, you should expect to complete identity verification before your property is marketed.

In many cases, agents may request:

  • Photo identification
  • Verification of ownership
  • Additional documentation if a company or trust is involved

The process is becoming a standard part of listing a property, similar to opening a bank account or applying for finance.

What Does This Mean for Property Buyers?

For most genuine buyers, the impact will be minimal.

However, buyers should be prepared to provide:

  • Identification documents
  • Information about purchasing entities
  • Additional documentation for trusts or companies

Foreign buyers and complex ownership structures may be subject to more detailed verification requirements.

What About Overseas Buyers?

Australia remains open to foreign investment, but increased transparency requirements mean overseas purchasers should expect more detailed compliance checks.

This may include:

  • Verification of overseas identification documents
  • Source of funds inquiries
  • Beneficial ownership checks
  • Additional documentation for corporate structures

Preparing these documents early can help avoid delays during the purchasing process.

Timeline for Implementation

The legislation has now been passed, with the real estate sector expected to transition into the expanded AML framework over the coming years.

Industry participants are currently preparing systems, procedures, and staff training to ensure compliance with the new requirements before full implementation.

Businesses that fail to comply may face significant penalties under the AML/CTF regime.

How Brisvegas Property Group Is Preparing

At Brisvegas Property Group, we are proactively preparing for the new AML requirements by:

  • Implementing enhanced client verification procedures
  • Training staff on AML compliance obligations
  • Updating internal policies and systems
  • Working with industry compliance providers
  • Ensuring a smooth experience for both local and overseas clients

Our goal is to make the compliance process as simple and efficient as possible while maintaining the highest professional standards.

Looking Ahead

The introduction of AML reforms represents one of the most significant regulatory changes to Australia's property industry in decades.

While additional compliance steps will become part of the buying and selling process, the reforms are designed to strengthen trust, improve transparency, and safeguard the long-term integrity of the Australian property market.

For buyers, sellers, and investors, understanding these requirements early will help ensure smoother transactions as the new framework is implemented.

‍