AML/CTF Requirements for Real Estate: What Buyers and Sellers Need to Know

From 1 July 2026, Australian real estate businesses that provide designated real estate services are required to comply with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

These requirements bring real estate agencies into Australia’s AML/CTF regime and introduce additional obligations around identifying clients, understanding who is involved in a transaction, assessing risk and maintaining appropriate records.

For most buyers and sellers, the practical impact will be relatively straightforward. You may be asked to provide identification and other information as part of the sale or purchase process.

At Clements International, we aim to make these requirements as simple and efficient as possible while meeting our obligations under Australian law.

Why AML requirements been introduced for real estate?

Property transactions can involve significant amounts of money and complex ownership structures.

Australia’s AML/CTF laws are designed to help prevent the financial system and property market from being used for money laundering, terrorism financing, proliferation financing and other serious financial crime.

From 1 July 2026, real estate agencies providing designated services have obligations that include Customer Due Diligence, commonly referred to as CDD.

What is Customer Due Diligence?

Customer Due Diligence is the process of establishing who we are dealing with and assessing the potential money laundering and terrorism financing risk associated with the customer and transaction.

The amount of information required will depend on the customer, the ownership structure, the nature of the transaction and the level of risk identified.

What information might I need to provide?

Additional documentation may sometimes be required to confirm the information provided.

Companies, Trusts and Other Ownership Structures

Where property is being bought or sold through a company, trust, partnership, self managed superannuation fund or another legal structure, additional information may be required.

We may also request relevant company, trust or other supporting documentation. The purpose is to establish who ultimately owns or controls the entity involved in the transaction.

What does this mean for property sellers?

If you appoint Clements International to act in the sale of your property, we may need to collect and verify information about you as part of our AML/CTF obligations.

Where the property is owned by a company, trust or another entity, additional information may be required to establish the ownership and control structure.

We recommend responding to requests for information promptly so the required checks can be completed without unnecessarily delaying your campaign or transaction.

What does this mean for property buyers?

Buyers may also be required to complete Customer Due Diligence when Clements International is providing a designated service in connection with the purchase of real estate.

The information required will depend on the circumstances and whether you are purchasing as an individual or through a company, trust or another entity.

In some circumstances, additional information may be requested about the nature of the transaction or the source of funds being used to purchase the property.

Will everyone be asked about their source of funds?

Not necessarily.

AML/CTF requirements operate on a risk based approach. Most straightforward transactions involving lower risk customers will generally require fewer checks.

Where a transaction or customer presents a higher level of risk, additional Customer Due Diligence may be required.

This can include asking about the source of funds used for the transaction or, in some circumstances, the source of a customer’s wealth.

Source of funds refers to how the money being used for a transaction was obtained. Examples may include salary, business income, investments, the proceeds of another property sale, a gift or inheritance.

What is a politically exposed person?

As part of Customer Due Diligence, checks may be undertaken to determine whether a person is a politically exposed person, commonly known as a PEP.

A PEP is generally a person who holds, or has held, a prominent public position or function. Particular AML/CTF requirements can apply depending on the type of PEP and the circumstances.

Being identified as a PEP does not mean that a person has done anything wrong. It simply means additional AML/CTF procedures may apply.

When will identification be required?

The timing of Customer Due Diligence can differ depending on whether you are selling or buying, the service being provided, the circumstances of the transaction and the customer’s assessed risk. For this reason, we may request information early in our relationship with you.

Where information is requested, providing it promptly is the best way to minimise potential delays later in the transaction.

Does AML apply to property management and residential leasing?

The new real estate AML/CTF designated service relates to brokering the purchase, sale or transfer of real estate.

Ordinary residential leasing and day to day property management are generally outside this particular designated real estate service.

If AML/CTF requirements apply to a particular service or circumstance, our team will explain what information is required.

How is my information handled?

Clements International takes the handling of personal and confidential information seriously.

Information collected for AML/CTF purposes is handled in accordance with applicable Australian privacy, AML/CTF and record keeping requirements.

We may also be required by law to retain particular records or provide information to AUSTRAC or other authorities in circumstances prescribed by law.

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Frequently Asked Questions

Why is my real estate agent asking for identification?

From 1 July 2026, real estate agencies providing designated services are subject to Australia’s AML/CTF regime. Customer identification and verification form part of the Customer Due Diligence process required under that regime.

Does this apply to every real estate agency?

Real estate businesses providing designated real estate services are subject to the AML/CTF requirements from 1 July 2026. These are industry wide legislative requirements rather than requirements introduced by an individual real estate agency.

Does this apply to both sellers and buyers?

Yes. AML/CTF obligations can apply in relation to both sellers and buyers where an agency is providing a designated service. The particular checks and timing may differ depending on the circumstances.

What identification will I need?

For many individuals, a current driver licence or passport may form part of the verification process. The exact information or documentation required will depend on the circumstances.

I am buying or selling through a trust. Will I need additional documents?

Generally, additional information will be required where a company, trust or other entity is involved. This is because we may need to establish the entity’s structure and identify the individuals who ultimately own or control it.

Will AML verification affect my credit score?

AML identity verification is not a credit application. Completing an AML/CTF identity check does not, by itself, constitute an application for credit.

I have previously dealt with Clements International. Do I have to provide identification again?

Possibly. Whether additional information or verification is required will depend on matters including the information already held, whether it remains current and the requirements applying to the new transaction.

Why might I be asked where my purchase funds came from?

In some circumstances, particularly where higher risk factors are identified, we may need additional information about the source of funds used for a transaction. This is part of the risk based Customer Due Diligence requirements applying to reporting entities.

What happens if I do not provide the requested information?

Clements International is required to comply with its AML/CTF obligations. If information required to complete appropriate Customer Due Diligence is not provided, we may be unable to provide or continue providing a designated service.

Is being asked additional questions a sign that something is wrong?

No. The level of Customer Due Diligence required varies according to the circumstances and assessed risk. Companies, trusts, overseas parties, unusual transaction structures and other factors can simply require additional verification under the AML/CTF framework.

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Making the process straightforward

For most property owners and purchasers, the new AML/CTF requirements should represent a relatively small additional step in the property transaction process.

Our role is to guide clients through what is required, explain why information is being requested and complete the necessary process as efficiently as possible.

If you are considering selling or purchasing property and would like to understand how the AML/CTF requirements may apply to your transaction, please contact Clements International.

This information is general in nature and does not constitute legal, financial or taxation advice. AML/CTF requirements can vary according to the customer, transaction and circumstances.

For official information about Australia’s AML/CTF regime, refer to AUSTRAC.