Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) - What the new Law mean for Vendors and Purchasers

What Victorian Buyers and Sellers Need to Know from 1 July 2026

Buying or selling property is one of life’s biggest financial decisions. From 1 July 2026, there is one important change that every Victorian property buyer and seller should understand.

Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms now apply to the real estate industry. While banks have followed these laws for many years, real estate agencies, buyer’s agents, conveyancers, lawyers and several other professional service providers are now also required to comply with them. These reforms are administered by the Australian Transaction Reports and Analysis Centre (AUSTRAC) and are designed to prevent criminals from using property transactions to hide or move illegally obtained money.

The good news for genuine buyers and sellers is that these changes should have very little impact on the overall buying or selling experience. You may simply be asked for additional identification and supporting documents earlier in the transaction.

Anti-Money Laundering Laws Will Impact Real Estate from 1 July 2026

Australia has long been considered one of the few developed countries where real estate professionals were not directly regulated under anti-money laundering legislation. That changed on 1 July 2026, when the Government expanded the AML/CTF framework to include the real estate sector.

This means that when you engage a real estate agency to sell your property, purchase a property, or act on your behalf, the agency is legally required to complete identity verification and Customer Due Diligence before or during the transaction.

These requirements are not optional. They are now part of Australian law and apply across Victoria and every other Australian state and territory.

The objective is simple:

• Reduce money laundering through Australian property

• Prevent organised crime from using real estate transactions

• Increase transparency in property ownership

• Protect buyers, sellers and the integrity of Australia’s property market

What is Customer Due Diligence (CDD)?

Customer Due Diligence (CDD) is the process of confirming who you are before a property transaction proceeds.

Think of it as being similar to opening a bank account.

Just as your bank asks for identification before allowing you to use its services, your real estate agent is now legally required to verify your identity and, in some situations, understand who ultimately owns or controls the property or purchasing entity.

Depending on your circumstances, CDD may include:

• Confirming your identity

• Verifying your residential address

• Confirming who owns or controls a company or trust

• Understanding the source of funds where appropriate

• Assessing whether there are any unusual risks associated with the transaction

For the majority of everyday buyers and sellers, this is simply an administrative step that will be completed at the beginning of the transaction.

Frequently Asked Questions (FAQs)

What does the AML/CTF legislation apply to?

The legislation applies to many services involved in property transactions, including:

• Real estate agencies

• Buyer’s agents

• Property developers (for certain designated services)

• Conveyancers

• Lawyers involved in property transactions

• Accountants providing certain services

These businesses must now comply with AUSTRAC’s AML/CTF obligations when providing designated services.

What does the legislation mean for me?

If you are buying or selling property, you may simply notice a little more paperwork than before.

Your real estate agent may ask you to provide:

• Identification documents

• Proof of address

• Details regarding companies or trusts

• Additional documents where required

Providing these documents promptly helps prevent unnecessary delays throughout the sale process.

For most clients, the overall buying or selling experience will remain largely unchanged.

What does this mean for me as a seller?

As a seller, your real estate agent will need to verify your identity before acting on your behalf.

If the property is owned by:

• an individual

• multiple owners

• a company

• a family trust

• a self-managed super fund

additional documentation may be required to identify the legal owners and any beneficial owners.

Your agent may also request authority documents showing you have the legal right to sell the property.

Providing these documents early helps ensure your campaign can commence without delays.

What does this mean for me as a buyer?

As a buyer, your agent or representative may request identification before progressing with your purchase.

Depending on the circumstances, you may also be asked to provide information regarding:

• where purchase funds are coming from

• whether finance has been approved

• whether you are purchasing personally or through a company or trust

• who ultimately controls the purchasing entity

These requests are now standard compliance requirements and should not be interpreted as a sign that anything is wrong with your transaction.

Documents Required for Customer Due Diligence (CDD)

The exact documents required will vary depending on how the property is owned or purchased.

Individuals

Typically, you may be asked to provide:

• Current Australian Driver Licence

• Australian Passport

• Foreign Passport (where applicable)

• Proof of residential address

• Medicare Card or Birth Certificate (where required)

• Visa documentation (if applicable)

Companies

Where a company is buying or selling property, documents may include:

• ASIC Company Extract

• Certificate of Registration

• Company Constitution (where requested)

• Details of Directors

• Details of Shareholders

• Identification for Directors

• Identification for Beneficial Owners

• Company ABN or ACN

Trusts

Where property is owned or purchased by a trust, documents may include:

• Full Trust Deed

• Deed of Variation (if applicable)

• Trustee details

• Identification of Trustees

• Identification of Beneficiaries (where required)

• Corporate Trustee documents (if applicable)

Self-Managed Super Funds (SMSFs)

Additional documents may include:

• Trust Deed

• Trustee details

• ATO registration

• Identification of Trustees

• Company documents (if there is a corporate trustee)

How Will This Information Be Used?

Many clients understandably ask why so much information is required.

The information collected is used solely to meet legal obligations under Australia’s Anti-Money Laundering and Counter-Terrorism Financing legislation.

Your information is used to:

• verify your identity

• confirm ownership or control of entities involved in the transaction

• meet AUSTRAC compliance obligations

• reduce the risk of fraud and identity theft

• help detect suspicious or unlawful financial activity where required by law

Professional real estate agencies are required to securely store your information and handle it in accordance with the Privacy Act 1988 (Cth) and their privacy obligations. Information is not collected for marketing purposes under AML/CTF requirements, and it is only used where legally necessary. In some circumstances, agencies may be legally required to report suspicious matters to AUSTRAC, and legislation generally prevents them from disclosing that such a report has been made.

Our Commitment to You

At Ham Kerr Property, we understand that buying or selling a property can already feel overwhelming. While these new AML/CTF requirements introduce a few additional compliance steps, our team is committed to making the process as smooth and straightforward as possible.

We’ll explain exactly what documents are required, why they are needed, and when they should be provided. By completing these requirements early, we can minimise delays and help keep your property transaction progressing efficiently.

If you have any questions about the new Anti-Money Laundering legislation or the documents you may need to provide, please don’t hesitate to speak with one of our team members. We’re here to guide you through every step of your property journey with confidence and care.