From 1 July 2026, significant changes to Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws will come into effect, impacting buyers’ agents, real estate agents, conveyancers, lawyers and a range of other professional service providers. These reforms are designed to strengthen Australia’s ability to prevent financial crime and bring the property industry in line with international standards.
For property buyers, the biggest change will be the introduction of mandatory identity verification and Know Your Customer (KYC) requirements throughout the property purchasing process.
What does this mean for buyers?
If you’re purchasing a property, you can expect to be asked for additional information and documentation before a transaction can proceed.
This may include:
- Identification documents such as a driver’s licence or passport
- Proof of address
- Information about the source of your funds
- Documentation relating to trusts, companies or self-managed super funds where applicable
These requirements are similar to the checks that banks have been conducting for many years and are aimed at ensuring that funds used in property transactions are legitimate.
Why are these changes being introduced?
Property transactions have long been identified as a potential avenue for money laundering and other financial crimes. The new AML/CTF reforms are designed to improve transparency, strengthen the integrity of Australia’s financial system and help detect and prevent criminal activity.
From 1 July 2026, real estate professionals, including buyers’ agents, will be required to undertake customer due diligence and verify the identity of their clients before providing certain services.
Will this slow down property transactions?
Verification checks will need to be completed for both buyers and sellers as part of all property transactions. These requirements will become a standard part of the purchasing process from 1 July.
Provided the requested documentation is supplied promptly, including any follow-up information if required, we do not expect these additional compliance steps to impact transaction timeframes or delay the completion process.
What can PMC clients expect?
As part of our compliance obligations, PMC will be undertaking identity verification and KYC checks for all clients.
Our team will be in contact to guide you through the process and request any required documentation. We encourage clients to complete these requests as soon as possible to help avoid any delays during their property search or purchase.
While these additional steps may be new for some buyers, they are an important part of protecting the integrity of the property market and ensuring compliance with Australia’s updated regulations.
For more information about why identity verification may be required, visit the AUSTRAC guidance page:
AUSTRAC – Why You Might Be Asked for ID