What the New Anti Money Laundering Rules Mean for Real Estate in 2026

From 1 July 2026, Australia’s real estate industry will be brought under new Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations. This marks a significant shift in how property transactions are handled, with real estate agencies, developers, conveyancers, lawyers, and accountants all now included under the reporting framework.

The changes come as part of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024, which expands existing obligations that previously applied mainly to banks and financial institutions. For the first time, real estate professionals will be formally required to carry out checks and reporting processes aimed at identifying and preventing illegal financial activity through property transactions.

Why real estate is being included

Property has long been recognised as a sector that can be vulnerable to money laundering due to the high value of transactions and the ease of moving funds through property purchases. By bringing real estate into the AML framework, the government is aiming to improve transparency and align Australia with international standards already in place in many other countries.

What will change in practice

For agencies and property professionals, the new rules will introduce additional steps into everyday transactions. These are expected to include:

• Verifying the identity of clients more thoroughly before proceeding with a transaction
• Understanding and recording the source of funds used to purchase property
• Reporting any suspicious transactions to AUSTRAC, Australia’s financial intelligence agency
• Maintaining detailed records of client information and transaction history

In addition, agencies will need to have internal compliance programs in place, including staff training and risk assessment processes.

What this means for the property market

While the changes are aimed at increasing transparency and reducing financial crime, they will also introduce a new layer of administration for real estate professionals. Transactions may take slightly longer, particularly in cases involving complex ownership structures or overseas funds.

For buyers and sellers, the process may involve more documentation and questions around where funds are coming from. For the industry, it will require adjustments to workflows and systems to ensure compliance is met without delaying transactions unnecessarily.

Overall, the introduction of AML regulations represents a significant structural change for the property sector, bringing real estate into line with other heavily regulated financial industries.