What the new Anti-Money Laundering Laws Mean for Real Estate from 1st July 2026

What the New Anti-Money Laundering Laws Mean for Property from 1 July 2026

From 1 July 2026, new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws will apply to real estate transactions across Australia. These changes are part of a nationwide reform designed to better protect buyers, sellers and the property market from fraud and financial crime.

What’s changing?

Real estate agents, buyers’ agents, developers and some legal professionals will now be required to follow the same anti-money laundering rules as banks. This means stricter processes around verifying identities, understanding where funds come from, and reporting suspicious activity to AUSTRAC (Australia’s financial intelligence agency).

These obligations will sit alongside existing NSW Fair Trading requirements, including identity verification and fraud prevention measures already in place for property transactions.

Why has this been introduced?

Property transactions involve large sums of money and have historically been a target for criminal activity. The new laws aim to:

• Reduce the risk of fraud and scams
• Increase transparency in property transactions
• Align Australia with global anti-money laundering standards

Ultimately, the goal is to make property transactions safer and more secure for all parties.

What buyers need to know

If you are purchasing property, you may notice a few changes:

• You may be asked to provide identification earlier in the process, sometimes before making an offer
• You may need to explain your source of funds (e.g. savings, loan, inheritance)
• Additional checks may apply for more complex transactions

These steps are designed to protect you and ensure all transactions are legitimate.

What sellers need to know

For vendors, the process will also become more structured:

• Your identity will be verified when you list your property
• If you are selling through a company or trust, ownership details may be required
• Your agent may confirm bank account details more carefully to prevent fraud

While this may add a small amount of administration, it significantly reduces the risk of scams and settlement issues.

What landlords should be aware of

For most landlords, everyday leasing will remain largely unchanged. However, if you are selling an investment property or involved in more complex transactions, these rules will apply in the same way as for other sellers.

What this means overall

Most transactions will continue to run smoothly, provided documentation is supplied early. These changes are not designed to slow the market, but to secure it.

Preparing for the changes

To ensure a seamless experience from July 2026:

• Have your identification documents ready
• Keep clear records of your funds and finances
• Work closely with your agent or conveyancer

If you have any questions about how these changes may affect your next move, our team is here to guide you through every step.

Sources:

AML/CTF obligations factsheet for tranche 2 reporting entities

Fraud prevention guidelines for property agents | NSW Government

Changes to transaction reporting from 1 July 2026 | AUSTRAC