AML/CTF Changes and Property Transactions: What You Need to Know
There has been increasing discussion around Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms, often referred to as “Tranche 2”.
While these reforms have traditionally applied to banks and financial institutions, they are now extending further into the property sector.
From 1 July 2026, the legislation will include professionals such as accountants, lawyers, conveyancers and real estate agents when they are involved in property sales and transfers. These changes will be administered by AUSTRAC.
Why this matters?
The intention behind these reforms is straightforward. They are designed to ensure that the Australian property market is not used to conceal funds from illegal activity.
Property remains a trusted and widely used investment, and with that comes a shared responsibility across the industry to maintain transparency in every transaction.
What will change in practice?
From July 2026, real estate agents will be required to meet specific compliance obligations as part of the sales and transfer process.
For most people, the transaction itself will still feel familiar. However, you may notice a more structured approach to information gathering and verification along the way.
What this means for sellers and buyers?
If you are selling or purchasing property, you may be asked to provide more detailed information than you have in the past.
This could include:
More thorough identity checks
Clarification around ownership structures
Clearer information on the source of settlement funds
These steps are becoming a standard part of the process and are designed to support transparency across all transactions.
What to expect moving forward
While there may be a few additional steps involved, the purpose is not to complicate transactions. It is to ensure that all parties are meeting their obligations under national legislation.
Working with professionals who understand these requirements will help keep the process smooth and compliant.
A steady shift for the industry
These changes reflect a broader move towards greater accountability within the property sector.
For owners, buyers and business operators, it simply means being prepared for a slightly more detailed process and understanding why those steps are in place.
If you have questions about how these reforms may affect your property or a future transaction, feel free to reach out.
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Disclaimer: This article is general information only regarding legislative changes affecting real estate agents and does not constitute financial, legal, or professional advice. You should not rely on this content as a substitute for advice tailored to your specific circumstances. We recommend seeking independent legal or financial advice where appropriate. For authoritative information, refer to the relevant government source linked above.