Australia's new Anti-Money Laundering and Counter-Terrorism Financing laws are changing the way property transactions are conducted. Here's what buyers and sellers can expect, and why identity verification will become a standard part of the process.

What's Changing From 1 July 2026?

From 1 July 2026, real estate agencies across Australia will be required to comply with new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) legislation.

For buyers and sellers, the most noticeable change will be the introduction of mandatory identity verification and customer due diligence processes before property transactions can proceed.

While these requirements are new to real estate, they have existed in banking and finance for many years. The reforms are designed to protect the integrity of Australia's property market and help prevent criminal activity such as money laundering, fraud and identity theft.

How Is TOOP+TOOP Preparing?

At TOOP+TOOP, we have spent considerable time preparing for the introduction of these reforms to ensure the process is as seamless as possible for our clients.

Our team has undertaken extensive training and implemented new procedures and verification systems designed to meet our legal obligations while minimising disruption to buyers and sellers.

This includes:

• Enhanced client identification processes

• Secure digital verification systems

• Staff training and compliance programs

• Ongoing monitoring and reporting obligations as required under Australian law

Our focus remains on delivering a professional, efficient and trusted experience while protecting our clients and maintaining compliance.

As part of our preparation for the new AML/CTF requirements, TOOP+TOOP has partnered with specialist compliance provider AMLHUB. Originally developed to support New Zealand's real estate industry following the introduction of Anti-Money Laundering legislation in 2018, AMLHUB is now helping Australian agencies navigate the upcoming reforms.

Given the sensitive nature of the information involved, data security was a key consideration in our selection process. AMLHUB holds internationally recognised information security certifications, providing confidence that client information is managed and protected to the highest standards.

What Information Might TOOP+TOOP Ask For?

As part of our legal obligations, TOOP+TOOP must undertake what is known as Customer Due Diligence (CDD) before providing real estate services.

In simple terms, this means we need to understand who we are dealing with and verify that information using reliable documentation.

Depending on the nature of the transaction, we may need to confirm:

• Your identity

• Your residential address

• Whether you are acting on your own behalf or for another person or entity

• Whether a company, trust or self-managed super fund is involved

• Who ultimately owns or controls that entity (known as a beneficial owner)

To do this, we may request documents such as:

• An Australian passport or driver's licence

• Proof of address

• Company registration documents

• Trust deeds

• Information relating to directors, trustees or beneficial owners

For most residential buyers and sellers, the process will be straightforward and involve only basic identification documents.

Why is TOOP+TOOP Collecting This Information?

From 1 July 2026, all real estate agencies in Australia will have legal obligations under AML/CTF legislation to identify and verify the parties involved in property transactions.

However, these requirements are about more than compliance. They help protect property owners, purchasers and the broader community by reducing the risk of fraud, identity theft and criminal activity.

The information we collect helps us:

• Verify that buyers and sellers are who they claim to be

• Confirm individuals have the authority to act on behalf of a company, trust or other entity

• Protect clients from fraudulent transactions

• Meet our obligations under Australian law

• Maintain the integrity of the property market

I'm Selling a Property. What Does This Mean for Me?

If you're selling a property, identity verification will become a standard part of appointing a real estate agent.

Before we can act on your behalf, we will need to verify your identity and, where relevant, confirm your authority to sell the property.

For most vendors, this will be completed quickly at the beginning of the sales process. If the property is owned by a company, trust, self-managed super fund or multiple parties, additional documentation may be required.

Completing these checks early helps ensure your campaign can proceed smoothly and minimises the risk of delays later in the transaction.

I'm Buying a Property. What Does This Mean for Me?

If you're purchasing property, you will also be required to verify your identity as part of the transaction process. These requirements apply regardless of whether you purchase at auction, by private treaty or through an off-market transaction.

For most buyers, verification will be straightforward and involve providing identification documents that can often be verified digitally.

Where a purchase is being made through a company, trust, self-managed super fund or other ownership structure, additional information may be required to identify the individuals who ultimately own or control that entity.

While this introduces an additional compliance step, it is designed to provide greater transparency, security and confidence for all parties involved.

What Does This Mean For the Future of Property Transactions?

For most buyers and sellers, the changes will introduce a small amount of additional paperwork at the beginning of a transaction.

However, the broader objective is to strengthen confidence in Australia's property market by ensuring greater transparency, reducing the risk of fraud and helping prevent criminal activity from entering the system.

As these requirements become standard practice across the industry, identity verification and customer due diligence will become a normal part of buying and selling property in the same way they are already a routine part of banking and finance.

Have Questions?

Our team is here to help.

If you're preparing to buy or sell property and would like to understand what documentation may be required under the new AML/CTF laws, please speak with your TOOP+TOOP Sales Partner.

We'll guide you through the process and ensure your transaction progresses as smoothly as possible.