What is AML and what do you have to do?

If you’re buying or selling property in Australia from 1 July 2026, there are new identity checking requirements you should be aware of. The changes are part of Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms. This is known as the AML/CTF Act. They are designed to help prevent financial crime in the property market throughout Australia.

What is AML?

These changes are part of Australia’s anti–money laundering and counter-terrorism financing laws (usually called AML/CTF laws).

From 1 July 2026, lawyers, conveyancers, real estate agents, accountants and buyers’ agents will have to follow stricter rules when helping with property sales and purchases. This includes checking who people are, doing basic checks on the transaction, and sometimes reporting certain information if the law requires it.

These rules already apply to banks and other financial institutions. The change is that they will now also apply to the property industry.

What will Buyers and Sellers need to provide?

The new requirements are expected to involve three key verification processes noted below.

Verification of Identity (VOI)

VOI is used to confirm that a person is who they claim to be and has authority to enter a property transaction.

In most cases, individuals will be asked to provide government-issued identification, such as a passport or driver’s licence, together with supporting documentation.

VOI requirements will generally apply to all buyers and sellers involved in a transaction.

Know Your Customer (KYC)

KYC requirements are designed to help understand who lawyers, accountants, agents and other entities are dealing with and the nature of the transaction.

Depending on the circumstances, buyers or sellers may be asked additional questions regarding the transaction, including information about the source of funds being used for a purchase.

For many individuals, this process is expected to be relatively straightforward, particularly where ownership arrangements and funding sources are clear.

Know Your Business (KYB)

If the property is owned through something such as:

• A company
• A family or discretionary trust
• A partnership
• A self-managed superannuation fund (SMSF)
• Another business or investment structure

then extra documents may be needed.

This is to work out who actually owns or controls the entity behind the property.

Depending on the structure involved, documentation may be required relating to directors, shareholders, trustees, beneficiaries, fund members, or other controlling parties.

Does this apply to everyone?

Yes. The new requirements apply whether the property is owned by:

• An individual
• A family trust
• A company
• A partnership
• A self-managed super fund (SMSF)

If a trust, company, or SMSF is involved, additional documents may be required to identify the people who control or benefit from that structure.

Why do we have to do AML checks?

Australian authorities have identified the property sector as an area that may be vulnerable to money laundering and other forms of financial crime.

The aim is to reduce the risk of money laundering and improve transparency in property transactions.

The changes also bring Australia’s regulatory framework more closely into line with international practices already adopted in a number of other countries.

What does this mean for property transactions?

For most buyers and sellers, the primary impact will be the need to provide identification documents and, where relevant, information about ownership structures earlier in the transaction process.

While the additional compliance requirements may increase the amount of documentation required, preparing these materials in advance may help avoid unnecessary delays.

Parties involved in upcoming property transactions should expect verification and due diligence checks to become a routine part of the conveyancing and sales process.

How can you prepare?

With the commencement date approaching, property owners and prospective purchasers may wish to:

• Confirm how the property is owned, whether personally, through a trust, company, SMSF, or another entity.
• Locate and update identification documents such as passports and driver’s licences.
• Ensure trust deeds, company records, SMSF documentation, and other entity records are readily available if applicable.
• Discuss verification requirements with their real estate agent, conveyancer, or solicitor before entering into a transaction.

From 1 July 2026, AML/CTF compliance requirements will become a standard part of Australian property transactions. Understanding the new obligations in advance may help buyers and sellers navigate the process more efficiently and minimise delays during settlement.

For more information about AML/CTF compliance, reliance agreements, or how FC Lawyers can work with referral partners to streamline the onboarding process for mutual clients, please contact our team.