What the new Anti-Money Laundering rules mean for you

What is changing on 1 July?

From this date, real estate agencies become reporting entities under the Anti-Money Laundering and Counter-Terrorism Financing Act, regulated by AUSTRAC, the national financial intelligence agency. The change forms part of broader reforms passed in 2024 that extend obligations long held by banks and financial institutions to sectors including real estate, legal and accounting services. The reforms bring Australia into line with international standards set by the Financial Action Task Force.

Why is real estate included?

Property has been recognised, both here and internationally, as a channel through which criminal funds can be moved or concealed. A single transaction can involve a substantial sum, making the sector attractive to those seeking to conceal the source of their money. Bringing real estate within the regime is intended to close that gap and to protect the integrity of the property market for genuine buyers and sellers.

Why might I be asked to verify my identity?

Under the new obligations, agencies must conduct a process known as customer due diligence. In simple terms, this means confirming the identity of the people we act for and understanding who we are dealing with. It applies to both buyers and sellers, and it is a standard requirement for every agency operating under the Act. If you have provided identification to a bank or to your solicitor in recent years, the process will feel familiar.
 

What information will I need to provide?

In most cases you will be asked for government-issued photo identification, such as a current passport or driver licence. Where a company, trust or self-managed super fund is involved in a transaction, we may also need to understand the ownership structure and confirm the individuals who ultimately own or control it. In limited circumstances, usually where a transaction carries higher risk, you may be asked about the source of the funds involved.

When in the process will this happen?

Identity verification will generally take place earlier than you may be used to, at the point we begin acting for you rather than closer to settlement. Providing the requested documents promptly is the simplest way to keep a transaction moving smoothly and to avoid any delay later on.

Is my personal information secure?

Yes. Any information we collect is used only for the purpose of meeting these compliance obligations, handled in accordance with our privacy responsibilities and stored securely.

Does this apply to renting?

The reforms are directed at the sale, purchase and transfer of property. Leasing and day-to-day property management generally sit outside the scope of these particular obligations, though we will always let you know if anything is required of you.

Working with us

For the overwhelming majority of our clients, these requirements amount to a small additional step at the outset of a transaction. Our team is well prepared and will guide you through what is needed, with as little disruption as possible. If you have any questions about how the changes may affect you, please speak with your Marshall White agent.

This article is intended as general information only and does not constitute legal advice. For official guidance, please refer to AUSTRAC: https://www.austrac.gov.au/