Important Changes to Australian Real Estate: New AML/CTF Laws Commence from 1 July 2026

Australia's property industry has entered a new era of compliance with the introduction of expanded Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws.

From 1 July 2026, real estate professionals across Australia are now regulated under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). These reforms require real estate agencies to carry out customer due diligence before providing certain services relating to the sale and purchase of property.

The changes form part of the Australian Government's wider efforts to combat money laundering, terrorism financing and serious financial crime, while bringing Australia into line with international standards established by the Financial Action Task Force (FATF).

At Impressive Property Sales, we're committed to making this process as simple, secure and seamless as possible for our clients.

Why Have These Laws Changed?

For many years, Australian banks and financial institutions have been required to verify the identity of their customers and monitor transactions under AML/CTF legislation. The 2026 reforms expand these obligations to additional industries, including:

Real estate professionals
Lawyers providing designated services
Accountants providing designated services
Trust and company service providers
Dealers in precious metals and stones

Property transactions can involve significant sums of money, making real estate an attractive target for criminals attempting to disguise illegally obtained funds. These legislative reforms help reduce this risk by increasing transparency and strengthening customer identification requirements.

What Does This Mean for Property Buyers and Sellers?

If you're buying, selling or otherwise transacting property with Impressive Property Sales, you may now be asked to provide additional information before we can act on your behalf.

Depending on your circumstances, this may include:

Government-issued photo identification
Proof of your residential address
Information about the source of your funds or source of wealth (where required)
Details of any beneficial owners ( if any)
Information about anyone acting on behalf of another person or entity
Additional supporting documentation where required under the legislation

These requirements are now legal obligations for real estate professionals and are not unique to Impressive Property Sales. Similar verification processes will become standard practice across the Australian real estate industry.

Understanding Customer Due Diligence (CDD)

One of the key components of the new legislation is Customer Due Diligence (CDD).

CDD requires real estate agencies to:

Verify the identity of their clients.
Understand who is ultimately involved in a transaction.
Identify beneficial ownership where companies, trusts or other entities are involved.
Assess whether a transaction presents a higher level of risk.
Keep appropriate records in accordance with the AML/CTF Act.

In some higher-risk situations, agencies may also be required to undertake Enhanced Customer Due Diligence (ECDD), which may involve requesting additional documentation or information.

Source of Funds and Beneficial Ownership

One of the most noticeable changes for many clients will be requests relating to the source of funds.

This simply means understanding where the money used in a property transaction has come from. Examples may include:

Savings
Sale of another property
Employment income
Inheritance
Investment proceeds
Finance from a recognised lender

Where properties are purchased through companies, trusts or other entities, we may also need to identify the beneficial owner—the individual who ultimately owns or controls the entity.

These checks are designed to prevent criminals from using complex ownership structures to conceal illegal activity.

Secure Verification with PEXA Clear

To simplify the process, Impressive Property Sales uses PEXA Clear, a secure digital identity verification platform.

Rather than providing documents in person, most clients will receive a secure verification link via email or SMS.

Using PEXA Clear, you can securely:

Verify your identity online.
Complete required AML/CTF questions.
Provide source of funds information where required.
Confirm beneficial ownership details.
Upload supporting documentation securely.

The platform has been designed to meet Australia's strict privacy and security requirements while making the compliance process as convenient as possible.

Protecting Your Privacy

We understand that requests for personal information can sometimes feel unfamiliar.

Any information collected is handled in accordance with the Privacy Act 1988, the Australian Privacy Principles (APPs) and our obligations under the AML/CTF legislation. Your information is collected solely to meet our legal obligations and is managed using secure systems and processes.

What Happens if Information Isn't Provided?

Because these obligations are now prescribed by law, there may be situations where we cannot proceed with providing certain real estate services until the required verification has been completed.

Our team will always explain what information is required and why, and we'll work with you to make the process as straightforward as possible.

Important Changes to Australian Real Estate: New AML/CTF Laws Commence from 1 July 2026