By Blake Stretton, Gittoes Real Estate
Updated: August 2026
If you are buying or selling property on the Central Coast, you may notice your real estate agent, solicitor or conveyancer asking for more identification and information than before.
This is because significant changes to Australia’s anti-money laundering and counter-terrorism financing laws came into effect on 1 July 2026. The new AML rules extend the AML/CTF regime to a range of property and professional services that were not previously regulated in the same way.
For most property buyers and sellers, there is nothing to be concerned about. Real estate professionals and other regulated businesses now have additional obligations. These include confirming who their customers are, understanding aspects of a transaction and identifying circumstances that may present a higher risk of financial crime.
Quick answer: From 1 July 2026, Australia’s AML/CTF laws expanded to include certain services provided by real estate agents and other property professionals. For Central Coast buyers and sellers, this means you may be asked to verify your identity and provide additional information about your property transaction.
What is AML and why has it changed?
AML stands for anti-money laundering, while CTF refers to counter-terrorism financing.
Money laundering involves disguising money or assets obtained through criminal activity so they appear legitimate. Property can be attractive for this purpose because of its value. Transactions can also involve companies, trusts, third parties and other ownership structures.
AUSTRAC is Australia’s financial intelligence agency and AML/CTF regulator. It has identified real estate as an area that can be exploited to move, store or disguise the proceeds of crime.
The reforms are designed to make it more difficult for criminals to use legitimate businesses and property transactions for these purposes.
From 1 July 2026, businesses providing certain designated services associated with real estate, legal services, conveyancing, accounting and other professional services became subject to expanded AML/CTF requirements.
What do the new AML rules mean when selling a property?
For someone selling a property on the Central Coast, one of the most noticeable changes is customer due diligence. Your real estate agent now needs to complete this process as part of providing certain regulated services.
This generally involves establishing and verifying your identity and understanding who is involved in the transaction.
If more than one person owns the property, each relevant person may need to be identified. If a company, trust or another legal structure owns the property, additional information may also be required.
This can include information about who ultimately owns or controls the entity and who has authority to act on its behalf.
For a seller’s agent, AUSTRAC states that initial customer due diligence on the seller or transferor must generally be completed before the agent starts providing the designated service.
AUSTRAC considers this service to begin when the agreement to broker the sale or transfer of the property is signed.
For sellers, AML verification should now be viewed as another normal part of preparing a property for sale.
Do the new AML rules also apply to property buyers?
Yes.
For AML/CTF purposes, an agent who successfully brokers a property transaction can have obligations relating to both the seller and the buyer. This applies even though the selling agent commercially represents the seller.
AUSTRAC’s guidance for real estate businesses states that both the seller and purchaser can be considered customers of the reporting entity for AML/CTF purposes.
This means buyers should not be surprised if the selling agent asks them to complete identification or other AML-related checks during the transaction.
What information might a property buyer be asked to provide?
For an individual buyer, this may include information such as:
- full name
- residential address
- date of birth
- identification documents
- method of funding the property purchase
- involvement of a trust, company or other legal structure
- status as a politically exposed person, where relevant.
AUSTRAC advises that buyers may be asked how they are paying for the property, such as through a home loan. They may also be asked whether they are purchasing through a legal arrangement such as a trust.
Companies, trusts and other structures can require a more detailed process. The regulated business may need to identify beneficial owners and people authorised to act for the entity.
When does a buyer need to complete the AML check?
The rules recognise that a buyer may not become known to a seller’s agent until relatively late in the sale process.
Because of this, real estate agents can generally delay initial customer due diligence for the party they are not acting for.
Where the agent acts for the seller, AUSTRAC currently allows the buyer’s initial customer due diligence to be completed up to 28 days after exchange of contracts or at least three days before the initially agreed settlement date, whichever occurs first.
You can read more in AUSTRAC’s guidance on delayed initial customer due diligence.
In practice, buyers should complete requested verification promptly. This is particularly important when settlement periods are short.
Will my real estate agent ask where my money came from?
Possibly, but this does not mean every purchaser will automatically need to provide extensive financial records.
AML/CTF obligations operate on a risk-based basis.
In certain circumstances, a regulated business may need to establish or verify a customer’s source of funds or source of wealth.
Source of funds refers to how the money for a particular transaction was obtained. Examples can include salary, business income, investments, proceeds from another property sale, gifts or inheritance.
Source of wealth is broader. It relates to how a person’s overall wealth or assets have been accumulated.
The amount of information required will depend on the circumstances and assessed risk.
AUSTRAC notes that the source of funds may sometimes already be clear without further verification. One example is a buyer financing a property purchase using a bank loan.
Further information is available in AUSTRAC’s guidance on source of funds and source of wealth.
What can lead to additional AML checks?
Most ordinary residential property transactions should involve a relatively straightforward process.
However, additional checks may be needed if a transaction or ownership structure presents greater risk. Further information may also be required where something does not match information already available.
Examples identified in AUSTRAC guidance include unusually complex transactions, unexplained sources of funds and unusual third-party payments. Other factors can include high-risk overseas connections, politically exposed persons or discrepancies in information provided.
Additional questions do not necessarily mean someone has done anything wrong. They form part of the obligations placed on regulated businesses to assess and manage financial crime risks.
Why is my solicitor or conveyancer asking similar questions?
Buyers and sellers may find themselves providing information to more than one professional during the same transaction.
This is because the reforms extend beyond real estate agents.
Certain services provided by solicitors, conveyancers, accountants and other professional service providers can also fall within the AML/CTF regime.
Your solicitor or conveyancer may therefore need to carry out their own checks. Completing an identity check with your real estate agent does not necessarily remove the need to complete another process with your legal representative.
This may feel repetitive, particularly while the property industry adjusts to the new system. However, the businesses involved can have separate responsibilities under the legislation.
What happens if I don’t complete an AML check?
The new AML requirements are legal obligations placed on regulated businesses. They are not simply an optional process introduced by individual real estate agencies.
Real estate agencies must now have systems for customer due diligence, risk management and record keeping. They also have obligations relating to reporting certain suspicious matters to AUSTRAC.
If required information cannot be obtained, the agency may need to take further steps under its AML/CTF program. Depending on the circumstances, this can affect the agency’s ability to provide a regulated service and may cause delays.
Providing requested information promptly is the simplest way to help keep a normal property transaction moving.
Will the new AML rules slow down buying or selling property?
For most buyers and sellers, the new AML rules should simply add another administrative step to the property transaction.
Delays are more likely where information is missing, identification cannot be verified or ownership structures are complicated. Additional due diligence can also take more time.
If you are selling through a company or trust, acting under a power of attorney or dealing with another less common ownership arrangement, it can be worthwhile allowing extra time to gather the required documents.
For an ordinary Central Coast seller or purchaser with straightforward ownership and identification, the process should generally be manageable when information is provided promptly.
Frequently Asked Questions
Why does my real estate agent need my ID now?
From 1 July 2026, real estate agents providing certain regulated property services became subject to Australia’s expanded AML/CTF laws. This includes customer due diligence obligations that require agents to establish and verify information about people involved in property transactions.
Does AML apply to both buyers and sellers?
Yes. When an agent brokers a property sale, both the seller and buyer can be regarded as customers for AML/CTF purposes. This means the agent can have due diligence obligations relating to both parties.
Do I have to prove where all of my money came from?
Not necessarily. Source of funds and source of wealth enquiries depend on the circumstances and assessed risk. In straightforward transactions, the information already available may sometimes be sufficient.
Do these rules only apply to real estate agents?
No. Certain services provided by solicitors, conveyancers, accountants and other regulated professional businesses are also covered by the expanded AML/CTF regime. Each business can have its own obligations and verification requirements.
Is AML verification the same as proving I can afford the property?
No. AML customer due diligence and financial or loan approval are different processes. AML checks focus on identity, the people involved in a transaction and potential financial crime risks. A lender assesses whether a purchaser qualifies for finance.
Should I be concerned if I am asked additional AML questions?
In most cases, no. Additional questions do not necessarily indicate a problem. Regulated businesses follow risk-based procedures and may need more information depending on the transaction, ownership structure or other circumstances.
Buying or selling property on the Central Coast?
The introduction of AML/CTF requirements is a significant change for the Australian property industry. For most buyers and sellers, however, it will simply become another normal part of a property transaction.
If you’re considering buying or selling on the Central Coast and would like to understand what to expect from the real estate process, you’re welcome to contact Blake Stretton at Gittoes Real Estate.
We can help explain the real estate side of the process and make your sale or purchase as clear and straightforward as possible. For advice about your individual legal or financial circumstances, speak with your solicitor, conveyancer, accountant or other appropriate adviser.
This article provides general information only and is not legal, financial or AML/CTF compliance advice. Requirements can vary depending on individual circumstances and regulatory guidance may change.