AML - What the new Anti Money Laundering laws mean for Buyers & Sellers

Anti-Money Laundering laws will impact real estate from 1 July 2026

Anti-Money Laundering/Counter-Terrorism Financing Legislation and Real Estate

Why is Anti-Money Laundering/Counter-Terrorism Financing (AML/CTF) legislation being applied to real estate?

• Vehicle for Money Laundering: Property can be used as a vehicle to launder money.

• High-Value Transactions: Real estate transactions are high value, meaning they can be used to move large sums of money.

• Tangible Asset: Property is a tangible asset.

• Legitimate Appearance: Real estate transactions can easily be made to look like legitimate transactions.

• Profit Generation: Unlike some other known avenues for money laundering, property can deliver a profit.

• Prevention Goals: The legislation aims to prevent money laundering specifically via the buying and selling of real estate.

What is Customer Due Diligence (CDD)?

These checks are called Customer Due Diligence (CDD) or Know Your Customer (KYC). If you are buying or selling a property as an individual, a trust, or a company, your real estate agent is legally required to:

• Verify your identity.

• Ask about the purpose of the transaction.

• Check if you are a politically exposed person or on a sanctions list.

• Request information about your source of funds or wealth in some cases.

Note: Your settlement agent will also be required to conduct CDD.

Frequently Asked Questions (FAQs)

When does the AML/CTF legislation come into effect?

The AML/CTF legislation officially comes into effect on 1 July 2026.

What does the AML/CTF legislation apply to?

• Applicable transactions: It applies to the buying and selling of property, including residential, rural, land, off-the-plan, and commercial property.

• Who must comply: Both real estate agents and settlement agents have legal obligations to comply with this legislation.

• Exclusions: It does not apply to renting residential property or commercial leasing.

What does the legislation mean for me?

The AML/CTF legislation requires real estate agents, including buyer's agents, to carry out a variety of background and identity checks on both property buyers and sellers.

What does this mean for me as a seller?

• Your agent will be required to perform CDD the moment you engage them to sell your property.

• The agent will be unable to advertise the property for sale until the CDD process is fully completed.

• If you signed a listing agreement before 1 July 2026, the agent will not need to do CDD.

What does this mean for me as a buyer?

• When purchasing a property, the selling agent will perform CDD on you once your offer to purchase has been accepted.

• In some cases, the real estate agent may be permitted to rely on the customer due diligence already completed by your settlement agent.

• If your offer was accepted before 1 July 2026, your real estate agent will not need to perform CDD. However, if the transaction settles after 1 July, your settlement agent will still be required to conduct CDD.

• If you engage a buyer's agent to help you find a property after 1 July 2026, they are required to complete CDD before they can provide you with any service.

Documents Required for Customer Due Diligence (CDD)

Below is an indicative list of documents your real estate agent may ask you to present in person or provide as a certified copy. This information is not exhaustive, and your agent will guide you through the specific requirements of your transaction.

• Individuals:

  • Primary documents: Australian or foreign passport, Australian driver's license, Australian proof of age card, or a foreign identity card.

  • Secondary/alternative documents: Australian birth certificate, citizenship certificate, Medicare card, concession card, or veteran card.

• Trusts:

  • The formal Trust Deed.

  • The standard individual identification documents (listed above) for all key position owners and beneficial owners.

• Companies:

  • Full formal details of the company.

  • The standard individual identification documents (listed above) for every beneficial owner who owns or controls 25% or more of the company.

    
    How will this information be used?

    This information is collected so Bellcourt can meet its legal obligations, verify identity, assess risk, and help ensure the transaction is legitimate. It may also be used to maintain required compliance records and, where required by law, support reporting obligations to AUSTRAC. We are required to retain this information for 7 years by law.