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AML/CTF Client Guide for Buyers & Sellers

This guide explains Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) requirements for real estate in plain language. The following questions answer the most common concerns buyers and sellers have about the new requirements.

What is AML/CTF?

AML stands for Anti-Money Laundering and CTF stands for Counter-Terrorism Financing. These laws are designed to prevent criminals from using legitimate businesses to disguise the origins of illegally obtained money or to fund terrorist activities. Property transactions involve significant amounts of money, making real estate an area that governments monitor closely.

Australia has strengthened its AML/CTF framework to better protect the financial system and align with international standards. While these laws introduce additional identification requirements, they are intended to safeguard honest buyers, sellers and businesses—not create unnecessary obstacles.

For most clients, the only noticeable change is that they may be asked to verify their identity and provide certain supporting documents. These checks are now becoming a standard part of buying and selling property.

Key Things to Know

  • AML/CTF laws help prevent financial crime.
  • Property transactions are considered higher-risk due to the large sums of money involved.
  • Identity verification is now a normal part of buying and selling property.
  • The process is designed to protect buyers, sellers and businesses.

When does this apply to the Real Estate industry?

For applicable property transactions from 1 July onwards, real estate agencies have legal obligations to complete Customer Due Diligence (CDD). Buyer verification generally takes place once the buyer becomes the confirmed purchaser, while seller verification may be required before marketing commences.

Completing verification early helps avoid delays and allows the transaction to progress smoothly. Requirements can vary depending on the nature and complexity of the transaction.

Why complete verification early?
  • Avoids settlement delays.
  • Ensures legal compliance.
  • Allows your property transaction to progress smoothly.
  • Reduces last-minute document requests.

What does this mean for you as a buyer?

You may be asked to provide identification such as a passport or driver's licence, proof of address and, in some circumstances, information relating to the source of funds. These requests are made because agencies are required by law to know who they are dealing with.

The process is straightforward for most buyers and is completed through a secure verification platform. Providing documents promptly helps prevent unnecessary delays later in the transaction.

You may be asked to provide:

  • Passport or Driver's Licence
  • Proof of Residential Address
  • Source of Funds (where required)
  • Additional identification if requested

How is my personal information and data stored and protected?

Your information is handled in accordance with Australian privacy obligations and stored using secure systems with restricted access. Documents are only collected for compliance purposes, retained only for the required period and protected from unauthorised access.

Real estate agencies understand the importance of confidentiality and take appropriate measures to safeguard your personal information.

I have already completed this with my bank and/or my lawyer; why am I doing this again?

Every regulated business has its own legal responsibilities under AML/CTF legislation. Although your bank or lawyer may have already verified your identity, they cannot share their compliance records with the real estate agency. Each organisation must independently complete and retain its own verification records.

Obligations

Buyers and sellers are expected to provide accurate information, cooperate with reasonable requests for identification and notify the agency if relevant details change. Agencies must undertake Customer Due Diligence (CDD), maintain appropriate records and comply with reporting obligations where required by law.

Responsibilities

  • Provide accurate and up-to-date information.
  • Respond promptly to identification requests.
  • Notify your agent if important details change.
  • Allow agencies to meet their legal AML/CTF obligations.

How do I provide this information?

Your agency will usually send a secure digital verification request by email or SMS. Simply follow the instructions, upload clear images of your identification documents and complete any additional verification steps requested. If more information is required, your agent will explain exactly what is needed and why.

Verification is Simple

  1. Receive your secure verification link.
  2. Upload your identification documents.
  3. Complete any requested verification steps.
  4. Your agent will contact you if anything further is required.

Frequently Asked Questions

Question Answer
If a property is listed, exchanged, under contract, or becomes unconditional before or after 1 July, when is buyer/vendor CDD required? Buyer KYC is only required where the buyer's contract is signed from 1 July onwards. Contracts signed before this date generally do not require buyer KYC, even if settlement occurs later.
Can buyer/vendor CDD be completed at unconditional? Yes. Buyer KYC is completed once the buyer becomes the confirmed purchaser, typically when the contract becomes unconditional.
Do we complete CDD for all buyers or only successful buyers? Only the confirmed buyer is required to complete KYC once the contract becomes unconditional.
For auctions, when does buyer KYC occur? Buyer KYC is completed for the successful purchaser at contract signing.
Can repeat vendors reuse CDD? Existing verification may be reused where appropriate, provided there has been no material change and compliance requirements are still satisfied.
Can properties be marketed before CDD? No. Required seller verification must be completed before marketing activities commence.
What happens to contracts signed before 1 July? Where the contract was signed before 1 July, KYC is generally not required even if settlement occurs after that date.
Do price changes need updating? Yes. Material changes such as the expected sale price should be updated in compliance records.

A Note from Simon Salm

I understand that new requirements can sometimes feel a little overwhelming, but you don't have to figure them out on your own.

My team and I are here to guide you through every step, answer your questions and make the process as smooth and straightforward as possible.

Whether you're buying or selling, we're always happy to explain the requirements, provide support and ensure you feel confident throughout the entire process. We're only a phone call or email away.

– Simon Salm

Our priority isn't just helping you buy or sell a property—it's making sure you feel informed, protected, and supported throughout the entire journey