Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms are being introduced to help strengthen transparency and accountability across Australia's financial and property systems. Similar verification requirements have long applied to banks, lenders and other financial institutions.

From 1 July 2026, legislation introduced by the Australian Government will extend these obligations to the real estate sector.

Property transactions often involve significant sums of money and in some cases, complex ownership structures. By requiring agencies to verify identities and better understand certain transactions, the legislation helps reduce the risk of money laundering, financial crime and other unlawful activity while supporting the integrity of Australia's property market.

Customer Due Diligence (CDD) is the verification process real estate agencies are required to undertake as part of Australia’s AML/CTF reforms. CDD involves taking reasonable steps to verify the identity of buyers and sellers, and to understand certain aspects of a transaction, before providing services.

Depending on the circumstances, this may include verifying your identity, confirming ownership or control of a company or trust, and in some cases, requesting additional information about a transaction. CDD is a standard compliance requirement and has long been used across banking, lending, and other regulated industries.

The AML/CTF reforms take effect from 1 July 2026.

In preparation for these changes, we are taking appropriate steps to inform and support customers who may be affected. Our team will guide you through the process and explain any information or documentation that may be required.

The AML/CTF reforms apply to residential and commercial property sales and purchases across Australia, including both vendors and purchasers, regardless of the property's value or location.

These requirements are a standard compliance measure and are not based on any suspicion of wrongdoing.

Yes. From 1 July 2026, real estate agencies must verify the identity of vendors and purchasers before providing services relating to applicable property transactions.

Identity verification is generally required for all relevant parties involved in a property transaction.

Where a property is owned by multiple individuals, each person may be required to complete verification. Where a company or trust is involved, additional information may be required to verify ownership and control of the entity.

Requirements can vary depending on the circumstances of the transaction, and your agent will advise exactly what is required.

Yes. These requirements apply to all buyers and sellers, including existing and repeat customers.

The legislation requires identity verification and Customer Due Diligence (CDD) to be completed for applicable property transactions. Even if you have previously completed identity verification with Nelson Alexander, a bank, conveyancer, solicitor or another organisation, we may still be required to complete our own verification process.

For most customers, the process is quick, straightforward and completed digitally.

Having the requested information and documentation available will help ensure verification can be completed promptly. If additional information is required or you're having difficulty obtaining certain documents, your agent will guide you through the next steps and discuss any available alternatives.

In some circumstances, additional information may be required about the source of funds involved in a transaction. This is a standard compliance requirement that may apply in certain situations and should not be viewed as a judgement on you or the transaction.

Additional enquiries may be required in circumstances such as:

• The transaction involves a higher value property
• A company, trust or more complex ownership structure is involved
• Funds are being transferred from overseas
• Enhanced due diligence requirements apply under the legislation

Examples of source of funds information may include savings, inheritance, equity from another property or other legitimate sources of funds.

Any information provided will be handled securely and in accordance with Australian privacy laws.

Providing the requested information is necessary for us to meet our legal obligations.

If the required information is not provided, we may be unable to act on your behalf or proceed with certain services until verification has been completed. Our team will work with you to help ensure the process is completed as smoothly as possible.

No. The AML/CTF reforms relate to property sales and purchases. Leasing transactions are not currently subject to these requirements.

To meet these legal obligations, we partner with First AML, a trusted global identity verification provider.

First AML uses secure technology and trusted data sources to verify individuals and entities. This may include identity verification, document checks, ownership verification and screening against relevant compliance, sanctions and risk databases.

Protecting your privacy is important to us.

Information collected as part of the verification process is used solely to meet legal and regulatory obligations and will be handled in accordance with Australian privacy laws. All information is securely stored and managed under strict confidentiality requirements.

For more information about how we collect, use and protect personal information, please refer to our Privacy Policy.

Further information about Australia's AML/CTF reforms is available through AUSTRAC, the Australian Government agency responsible for administering Australia's anti-money laundering and counter-terrorism financing laws.

If you have questions about how these requirements apply to your property transaction, please speak with your Nelson Alexander agent.