What the AML/CTF Changes Mean for Property Buyers and Sellers

Why Are We Asking for More Information?

If you are buying or selling property, you may have noticed that you are now being asked to complete additional steps and provide more information as part of your transaction.

This is not because we are nosy – although we do love sharing in our clients’ excitement when we see the properties they are buying and selling online!

It is because of changes to Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws. From 1 July 2026, businesses providing certain designated services, including relevant conveyancing, legal, real estate and accounting services, became subject to new AML/CTF requirements. These include additional requirements around identifying clients, understanding ownership and control, understanding the nature and purpose of transactions.

What Are the New AML/CTF Requirements?

Australia has had AML/CTF laws in place for many years, particularly applying to financial institutions and other regulated businesses. The reforms expand AML/CTF regulation to additional professional services, including certain conveyancing and real estate services.

AUSTRAC, the government agency that regulates Australia’s AML/CTF laws, identifies property and other non-financial sectors as areas where stronger controls are needed to help prevent financial crime. The reforms are designed to make it harder for criminals to use legitimate businesses and transactions to hide or move the proceeds of crime.

As a ‘reporting entity’ (a business to which these laws apply), we must carry out ‘customer due diligence’ (CDD). In simple terms, this means taking reasonable, risk-based steps to understand who our clients are, who may ultimately own or control an entity involved in the transaction, and the nature and purpose of the service and transaction.

Depending on the circumstances, further information or checks may be required to manage the risks of a transaction being used for money laundering, terrorism financing or proliferation financing.

What Information Might My Conveyancer Need?

The exact information required will depend on your circumstances, the type of transaction and the risks associated with the matter.

You may be asked for some or all of the following:

Verification of Identity (VOI)

We need to confirm who you are using appropriate identification documents. Usually, this means providing photo identification, such as a driver’s licence and passport, along with other verification steps completed securely through an online verification platform. All conveyancers in Victoria were already undertaking a mandatory VOI with clients.

Company, Trust and Ownership Information

If a company, trust or other entity is involved, we may need information about the entity and the people who ultimately own or control it. Depending on the circumstances, this may include company records, trust documentation, and information about the directors, trustees, beneficiaries and beneficial owners.

Additional Screening Checks

As part of our AML/CTF checks, we may also screen relevant individuals and entities against politically exposed person (PEP) and sanctions lists, as well as conducting publicly available information or adverse media, to help identify and assess potential financial crime risks.

These checks do not mean that we consider a client or transaction to be suspicious. They are part of our risk-based AML/CTF requirements and may be undertaken as part of our initial or ongoing due diligence.

Understanding Your Transaction

We may ask questions about the nature and purpose of the transaction and, where required, how it is being funded.

This could include whether the property is being purchased as a home or investment, whether you are buying or selling on behalf of someone else, or where funds are coming from.

Depending on the circumstances, this may include savings, proceeds from another property sale, a mortgage or loan, an inheritance, a family gift or business/investment funds.

If someone else is contributing funds, particularly someone overseas, please let us know early as we may need information about them too.

Information for Sellers/Vendors

Sellers must also complete appropriate checks. This includes verifying your identity and confirming that you are the property owner or authorised to sell.

Depending on the circumstances, we may also need to understand where the sale proceeds are going, particularly if they are being paid to someone other than the owner or to an overseas account. Being asked for additional information does not mean your transaction is considered suspicious. These checks are part of our legal obligations.

Why Is My Real Estate Agent Also Asking for Information?

You may also notice that your real estate agent is asking for identification or other information.

This is because the AML/CTF requirements apply to each reporting entity. Your real estate agent and conveyancer therefore have their own customer due diligence requirements, meaning you may be asked for similar information more than once.

In some circumstances, one reporting entity may be able to rely on customer identification information collected by another. This is known as reliance and is subject to specific requirements and risk considerations. Where appropriate, it may reduce the need to provide the same information to multiple businesses.

When and How Will I Be Asked for Information?

We will usually ask for identification and other required information at the start of your matter, when you engage us.

For purchasers, if you have not yet entered into a Contract of Sale, we will generally hold off on completing the full verification process until the Contract is in place.

We request identification and other sensitive information through a secure platform.

If you are unable to provide something we have requested, please let us know as early as possible. We can explain what is required and, where appropriate, whether alternative documentation may be available. If required checks cannot be completed, we may not be able to act or progress the matter.

How Will My Information Be Handled?

We understand that identification, financial and ownership information is sensitive. We will only request information relevant to our legal and professional obligations and will handle it in accordance with applicable privacy, confidentiality, security and record-keeping requirements.

Certain AML/CTF records must be retained for at least seven years. In some circumstances, information may also need to be reported to AUSTRAC, and the law restricts what we can tell you about such reports.

If you have concerns about providing particular information, please speak with our team. We are happy to explain what is required and why.

Will the New AML/CTF Requirements Delay My Settlement?

The additional requirements do not necessarily mean your transaction will be delayed. However, delays can occur if information is not provided when requested or further checks are required.

You can help keep your matter moving by:

• Completing your identity verification promptly.
• Providing clear, current and complete documents.
• Telling us early if a company, trust, SMSF, attorney or overseas party is involved.
• Keeping evidence of the source of funds where relevant, particularly where another person is contributing.
• Letting us know if the funding or structure of the transaction changes.

Providing the information promptly helps us complete the required checks and keep your transaction progressing.

More Information. More Checks. The Same Personal Service.

For property buyers and sellers, the AML/CTF reforms may mean providing more information and completing additional checks than you have experienced in previous transactions.

Our approach hasn’t changed. At Fastrack, we are here to provide personal, direct support, explain what is required and help keep your matter moving – with no shortcuts or cutting corners.

If you are buying or selling property and have questions about the information we have requested, contact our team today on 03 9915 5790.

This article provides general information only and is not legal advice. AML/CTF requirements can depend on the circumstances of your matter. We will confirm exactly what information and checks are required for your transaction.

Updated: September 2026