The way property transactions are conducted in Australia is evolving, with new Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements now introducing additional verification and due diligence processes for many residential and commercial property sales transactions.
While these changes are designed to strengthen transparency and reduce financial crime, they may also mean individuals, property owners, investors and businesses are required to provide additional information when buying or selling property.
THE REFORMS ARE NOW IN EFFECT
As of 1 July 2026, real estate professionals are now subject to expanded Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) obligations. As a result, residential and commercial property sales transactions may involve increased customer identification, ownership verification and due diligence requirements.
While many businesses have been preparing for these reforms, property owners, investors and individuals involved in property transactions should now be aware of the additional information that may be requested during a transaction.
WHAT ARE AML AND KYC REQUIREMENTS?
AML (Anti-Money Laundering) and KYC (Know Your Customer) measures are designed to verify the identity of individuals and entities involved in financial transactions.
Most Australians have encountered these requirements when opening a bank account or applying for finance. Similar verification processes are now becoming increasingly important across a broader range of industries, including property transactions.
The aim is simple: to ensure businesses understand who they are dealing with and to help prevent illegal funds from entering legitimate transactions.
WHY IS PROPERTY AFFECTED?
Property transactions can involve substantial sums of money and, in some cases, complex ownership structures.
Transactions may involve:
- Individuals
- Companies
- Family trusts
- Self-managed superannuation funds (SMSFs)
- Partnerships
- Corporate groups and investment entities
As a result, additional verification requirements may be necessary to establish identity, ownership, control and the source of funds involved in a transaction.
WHAT INFORMATION MIGHT BE REQUIRED?
Depending on the transaction, buyers, sellers, property owners, purchasers or investors may be asked to provide:
- Proof of identity documentation
- Company registration details
- Trust deeds or trustee information
- Details of beneficial owners and controlling parties
- Information regarding the source of funds or wealth
- Additional supporting documentation where required
The exact requirements will vary depending on the nature of the transaction and ownership structure.
WHAT DOES THIS MEAN FOR PROPERTY OWNERS?
For many individuals and property owners, the changes will simply introduce an additional administrative step during the transaction process.
However, having documentation prepared and ownership structures clearly documented can help minimise delays and ensure transactions proceed efficiently.
This is particularly important for investors operating through trusts, companies or SMSFs, where additional verification may be required.
HOW CAN YOU PREPARE?
If you’re considering buying, selling or investing in property, it is worthwhile ensuring that:
- Identification documents are current
- Company records are up to date
- Trust documentation is readily accessible
- Ownership structures are clearly documented
- Financial records are organised and available if required
Having this information readily available can help avoid unnecessary delays and support a smoother transaction process.
NAVIGATING THE CHANGES
As regulatory requirements continue to evolve, property sales transactions are likely to involve greater levels of due diligence and verification.
At MLV Property, we work closely with property owners, investors, buyers and sellers throughout the transaction process and remain committed to keeping our clients informed of important industry developments.
If you’re considering buying, selling or investing in property and would like guidance on navigating the new AML and KYC requirements, our team is here to help.
This article is intended as general information only and does not constitute legal, financial or compliance advice. Independent professional advice should be sought regarding your individual circumstances.
Alice Brydges
AML Compliance Administrator
Mobile: 0415 799 723
Email: [email protected]
David Lamb
Managing Director
Location: West Perth
Mobile: 0411 597 952
Email: [email protected]
Tony Gorman
Director – Sales, Leasing & Valuations
Location: West Perth
Mobile: 0403 589 994
Email: [email protected]
Stefan Quaresimin
Director – Sales & Leasing Agent
Location: Welshpool
Mobile: 0421 929 686
Email: [email protected]
Matthew Crofts
Sales & Leasing Agent, Valuer
Location: Welshpool
Mobile: 0409 572 773
Email: [email protected]
Geoff Hill
Sales & Leasing Agent, Valuer
Location: Bunbury
Mobile: 0408 002 211
Email: [email protected]
Keiran Daggett
Sales & Leasing Agent
Location: Bunbury
Mobile: 0427 902 106
Email: [email protected]
Connor Brown
Sales & Leasing Agent
Location: Busselton
Mobile: 0487 681 873
Email: [email protected]
Robin Schneider
Project Marketing
Location: West Perth
Mobile: 0418 914 281
Email: [email protected]
