New AML Laws Coming to Real Estate
From 1 July 2026, new Anti Money Laundering and Counter Terrorism Financing (AML/CTF) laws are expected to apply to real estate agencies across Australia.
Based on current legislation, these obligations are expected to apply primarily to property sale transactions.
As part of these reforms, real estate agencies will become regulated “reporting entities”, meaning businesses like M5 Industrial Property Services will have legal obligations to complete certain identity verification and compliance procedures before providing designated services.
These reforms are being introduced and regulated by AUSTRAC, Australia’s anti money laundering and counter terrorism financing regulator.
Why are these changes being introduced?
The new AML/CTF reforms are designed to help prevent money laundering, fraud and other financial crimes within the Australian property market.
These reforms are being introduced across the entire Australian real estate industry and align Australia with international standards already operating in many other countries.
Money laundering and financial crime can impact communities, businesses and the broader economy.
The purpose of these reforms is to strengthen transparency and reduce the misuse of legitimate industries and transactions.
What does this mean for our clients?
For most clients, the impact will be minimal.
However, during applicable property sale transactions, clients may be asked to provide additional information or documentation as part of mandatory legal compliance requirements.
Depending on the transaction, this may include:
- Identification documents
- Proof of address
- Company or trust documentation
- Ownership and control information for entities
- Source of funds information where required
These checks are required by law and will apply across the Australian real estate industry.
Who may need to be verified?
Depending on the transaction structure, verification requirements may apply to:
- Buyers
- Sellers
- Company directors
- Trustees
- Beneficial owners
- Attorneys acting under power of attorney
- Representatives acting on behalf of another party
Where a property is being purchased or sold through a company, trust, SMSF or other entity structure, additional documentation may be required under the legislation.
What is KYC & KYB?
KYC stands for “Know Your Customer” and KYB stands for “Know Your Business”.
KYC & KYB procedures form part of AML legislation and require businesses to verify the identity of clients and, in some cases, understand the ownership structure or nature of a transaction.
Our commitment to our clients
At M5 Industrial Property Services, we are committed to making the process as straightforward, secure and efficient as possible.
Our team is already preparing for these changes to ensure the transition remains professional, compliant and minimally disruptive for our clients.
In most cases, verification can be completed quickly. Providing requested information promptly will help minimise delays to transactions or settlements.
We will continue to provide updates and guidance as the implementation date approaches.
If you have any questions, please feel free to contact our team.
If you would like to read more about the upcoming legislation changes, further information is available on the AUSTRAC website https://www.austrac.gov.au/amlctf-reform-webpage-home-everything-reform