It's Here: What the New Anti-Money Laundering Laws Mean for You

Back in September last year, our Director Terry Robinson shared an early update on some significant legislative changes heading our way. Well, the time has come — 1 July 2026 is just around the corner, and we want to make sure our clients feel informed, prepared, and confident going into this new chapter.

Here's everything you need to know.

What's Changing?

On 1 July 2026, real estate agents across Australia will formally come under the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act for the first time. This is part of a major national reform — known as the Tranche 2 expansion — that extends obligations previously held only by banks, credit unions, and financial institutions to a broader range of professional services.

Alongside real estate agents, the reforms also capture property developers, conveyancers, lawyers, accountants, and dealers in precious metals and gems.

The legislation — the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 — received Royal Assent in December 2024, and AUSTRAC (Australia's financial intelligence and regulatory agency) has been working with industry ever since to support a smooth rollout.

Why Real Estate?

Property has long been recognised internationally as a sector that can be vulnerable to the movement of illicit funds. High-value transactions, complex ownership structures, and the ability to transfer significant wealth through a single purchase make real estate an attractive avenue for those seeking to launder money.

Australia is aligning itself with international standards set by the Financial Action Task Force (FATF), which many comparable countries — including New Zealand, the UK, and the European Union — have already adopted. This is a positive step for the integrity of our property market and our broader community.

What Does This Mean in Practice?

For our clients, the most visible change will be a more thorough identity verification process at the start of a transaction. This applies to:

• Sellers at the point of listing a property
• Buyers when purchasing a property

You may also be asked to provide information about the source of funds being used in a transaction, particularly where complex ownership structures such as companies, trusts, or self-managed super funds are involved.

How We're Handling It

As Terry shared last year, we've been preparing for this well ahead of time. We have partnered with a trusted platform that has been assisting real estate agencies in New Zealand — where similar laws have been in place for six years — and has now established operations to support Australian agencies.

Their system connects with government databases including ASIC to verify the identity of individuals, companies, trusts, and super funds — including matching directors and shareholders for entities. Importantly, everything is processed through an encrypted system, which means your ID and personal data are not stored within our own agency systems.

We have also appointed our AML/CTF compliance officer and have our program in place, so we are ready to go from 1 July.

What to Expect When You Transact With Us

The ID verification step will be a simple, quick process — similar to what you might already be used to when setting up a bank account or dealing with a solicitor. For most clients, it will take only a few minutes.

If your transaction involves a company, trust, or other entity, there may be a few additional questions about ownership and control — but we'll guide you through it clearly and efficiently.

Transactions may take a small amount of additional time in complex cases, but our goal is to make this as seamless as possible for you. Like many changes in our industry, we expect this to simply become part of the normal process before long.

The Bigger Picture

We want to be transparent: these laws exist for a very good reason. Money laundering through property has real human costs — it is linked to drug trafficking, organised crime, corruption, and exploitation. Bringing real estate into this regulatory framework is a meaningful step toward protecting our communities and keeping our property market clean and trustworthy.

We are proud to be part of that effort, and we thank our clients for your patience and cooperation as we move into this new phase together.

Resources & Further Reading

What is AML

• AUSTRAC — Tranche 2 Transitional Rules Update: austrac.gov.au/reforms/amlctf-transitional-rules-update
• AUSTRAC — Fact Sheet PDF: https://www.austrac.gov.au/sites/default/files/2025-07/AMLCTF_obligations_factsheet_for_tranche_2_REs.pdf 

Have questions? We're always happy to talk you through what to expect. Get in touch with our team — we're here to help make every step of your property journey as straightforward as possible.