AML/CTF checks when buying property: what buyers need to know

Buying property in Australia may now involve additional identity and purchaser checks. Here's what the changes to Australia's anti-money laundering and counter-terrorism financing rules mean for buyers, what information may be requested and how to prepare.

Since 1 July 2026, Australia's expanded anti-money laundering and counter-terrorism financing (AML/CTF) requirements have applied to certain real estate and professional services.

This means buyers may be asked to verify their identity or provide information about their purchase by a real estate agent, property developer, conveyancer or another professional involved in the transaction.

The information required depends on the service being provided, the purchaser and the circumstances of the transaction.

Why are AML/CTF checks now part of property transactions?

Property transactions can involve large sums of money and complex ownership arrangements. This creates opportunities for criminals to use property to disguise the origins of illegally obtained funds.

Australia's expanded AML/CTF requirements are intended to help businesses identify their customers and reduce the risk of property transactions being used for financial crime.

Businesses providing regulated services must carry out customer due diligence. This involves collecting and verifying information about customers and, where necessary, making further enquiries about a transaction.

The changes form part of a broader expansion of Australia's AML/CTF framework, overseen by the Australian Transaction Reports and Analysis Centre (AUSTRAC).

Who might ask for information when buying property?

Depending on the transaction, buyers may be asked to provide information to real estate agents, property developers, conveyancers or legal professionals.

Under AUSTRAC's real estate guidance, the requirements can apply to property developers selling land, house-and-land packages or off-the-plan apartments without an independent real estate agent brokering the sale.

This includes developers using their own in-house sales teams.

Where an independent agent brokers the transaction, that agent may have its own AML/CTF obligations. Conveyancers and legal professionals may also have obligations when providing relevant services.

Who requests information will therefore depend on how the property is being sold and which services are involved.

What information might buyers need to provide?

For individual buyers, information requested may include:

• Full name, date of birth and residential address.
• Current identification, such as a driver's licence, digital driver's licence or passport.
• Contact details.
• Information about how the property purchase is being funded, such as through a home loan.

If you are purchasing through a company, trust or another legal arrangement, further information may be needed.

This could include company or trust documents, details of directors or trustees, authorised representatives and the people who ultimately own or control the purchasing entity.

Depending on the circumstances, a business may also request more information about the source of funds being used for the transaction.

Not every buyer will need to provide every document. The information requested will depend on the applicable checks and the transaction involved.

When will AML/CTF checks take place?

The timing of these checks depends on the type of transaction, the business involved and the requirements that apply to its services.

Information may be requested when an offer is accepted, during the contract process or as the transaction progresses towards settlement.

Some circumstances allow businesses to delay particular verification steps, but buyers should not assume that all checks can wait until settlement.

If required information cannot be obtained or verified, a business may be unable to progress the relevant part of the transaction until its obligations have been met.

Providing accurate information when requested can help avoid unnecessary delays.

Does an identity check mean something is wrong with my purchase?

Not necessarily.

Being asked for identification or other information can be a routine part of a regulated property's purchase process.

Additional enquiries may be required because of the purchaser's ownership structure, the nature of the transaction or other circumstances relevant to the checks.

A request for information does not, by itself, mean there is a concern about the buyer or the purchase.

How can property buyers prepare?

A little preparation can make the process easier.

Before purchasing, make sure your identification is current and your contact details are accurate.

If you're buying through a company or trust, have relevant documents available and make sure you know who is authorised to act on behalf of the purchasing entity.

If further information is requested, ask the person handling your purchase to explain what is required and when it needs to be provided.

Because identification and financial documents contain sensitive information, confirm the appropriate method for supplying them before sending anything.

If you are unsure about a request, contact the relevant representative using contact details you already know are genuine.

What does this mean for Cedar Woods buyers?

If information is required for AML/CTF checks as part of a Cedar Woods property transaction, our team will explain what is needed and how to provide it.

Information collected by Cedar Woods will be handled in accordance with applicable privacy requirements and our Privacy Policy.

If you have questions about information requested during your purchase, contact your Cedar Woods sales representative or the person handling your transaction.

For more information about the changes, visit AUSTRAC's guidance for property buyers.

Cedar Woods can explain the information required for our process, but we cannot provide legal, tax or financial advice. Buyers who are unsure about their obligations, purchase structure or what information to provide should seek independent advice from a qualified professional.

Disclaimer: This article is general information only and does not constitute legal, financial, tax or compliance advice. AML/CTF obligations and purchaser requirements may depend on the transaction, purchaser structure and applicable law. Buyers should seek independent advice where required.