A Deep Dive into AML Legislation

 

What the New AML Laws Mean for Property Buyers & Sellers

If you’re planning to buy or sell property after 1 July 2026, there’s an important change you’ll need to know about.

New Australian legislation means real estate agencies (and other related institutions) will be required to complete identity and customer verification checks as part of every property transaction.

Before you panic, it’s not as complicated as it sounds.

Davey Real Estate has teamed up with a WA-based team that is experienced in the security field –EasyAML. Their software and app speeds up the process and makes it all very straightforward for our clients.

For most buyers and sellers, it simply means clicking on the SMS link and following the steps – you will be asked to provide some identification and complete a secure verification process before your sale or purchase can move forward.

Here’s some more information you need to know.

Why Are These New Checks Being Introduced?

Australia has updated the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF) to now include real estate agencies due to property transactions invlolving significant sums of money.

The aim is simple – to tighten the Australian Economy against organised crime.

What Does This Mean for Sellers?

If you’re selling your home after 1 July 2026, your identity (using an app link we will send you from EasyAML) will need to be verified before your property can be advertised for sale.

Once you’ve appointed Davey Real Estate, we’ll guide you through an easy and secure verification process before your campaign launches.

Most sellers will simply be asked to provide:

• A driver’s licence or passport
• Your legal name and contact details
• Documents confirming your authority to sell (where applicable)

If the property is owned by a company, trust or another entity, some additional documentation may also be required.

The sooner your verification is completed, the sooner we can get your property live and in front of buyers.

What Does This Mean for Buyers?

If your offer on a property is accepted after 1 July 2026, you’ll also be required to complete identity verification. This is also done through an SMS link we will send you that will direct you to EasyAML’s straightforward verification process.

Depending on your circumstances, you may be asked to provide:

• Photo identification
• Contact details
• Company, trust or SMSF documents (if purchasing through an entity)
• Additional information where required under the legislation

Completing these checks promptly will help avoid unnecessary delays during the settlement process.

My sales agent has already done a 100-point identity check. Does that count?

Unfortunately no.

Traditional Verification of Identity (VOI) simply confirms you are who you say you are.

The new AML requirements go a step further by confirming details about the transaction itself, including who has authority to buy or sell, whether another entity is involved, and other information required under the legislation.

For most people, the process won’t feel dramatically different—it simply becomes a mandatory part of buying or selling property.

Will Everyone Need to Provide the Same Information?

No.

It depends on who or what “entity” is purchasing the property.

Someone purchasing a home in their own name may only need to provide basic identification.

More complex transactions involving trusts, companies, self-managed super funds or attorneys (for example, a power of attorney) may require additional documentation.

We’ll let you know exactly what’s needed for your individual circumstances.

What Happens If I Don’t Complete the Checks?

Unfortunately, they are not optional.

Under the new legislation:

• We must immediately stop all services to Sellers
• Buyers who delay providing the requested information may experience delays with their purchase or settlement.

The good news is that most people complete the process quickly online.

How Can I Prepare?

If you’re thinking about buying or selling this year, it’s worth having a few documents ready.

Sellers

✔ Driver’s licence or passport

✔ Your legal name as shown on the Certificate of Title

✔ Any authority documents if someone is acting on your behalf

✔ Company or trust documents, where applicable

Buyers

There are three areas that we, as agents, need to cover:

1.  Identity check (you are who you say you are)
2.  Structure of the purchase (what entity will the property be held in – eg you and your partners’ names, or a trust)
3.  Source of your funds (eg are you using a mortgage broker, or funds from an Australian bank)

1. Identity Check:

✔ Driver’s licence or passport

✔ Contact details

2. Structure of the purchase

✔ Company, trust or SMSF documents if applicable

✔ Authority documents where someone else is signing. For example, a signed and current copy of the Power of Authority form

    3. Source of Funds

This one can feel a little intrusive, for you and for us.

If you are paying cash, we need to verify where the funds are coming from. We are (unfortunately) required to assume the money is “dirty”, until proven otherwise. That’s right, it is the opposite of “Innocent until proven guilty!” We don’t like it any more than you. Here is a list of items that will help get you through (found on the AUSTRAC website)

•  reliable and independent online sources such as government databases and credible media reporting
•  a signed letter from your accountant confirming your source of funds
•  a payslip summary or an employer letter confirming employment and salary details
•  a letter from the executor of an estate confirming the distribution of assets to you as inheritance
•  a copy of the sale record or title deed from the sale of the property.

On rare occasions, AUSTRAC may require us to find out what a buyer’s “source of wealth” is as an additional check. More information on this is available on the AUSTRAC website, but it is unlikely we’ll require this step.

Being prepared now can make the entire transaction smoother later.

Who pays for this check?

To rub salt into the wounds, there is a significant cost to conducting the AML checks. It is early days, and we hope the costs come down, but it is currently too significant for businesses to entirely absorb it. At this stage, Real Estate Agents, Settlement Agents and Mortgage Brokers are passing a portion of the costs onto clients. If and when costs come down, we expect to be able to absorb the cost.

The Bottom Line

We feel this is something that the government should deal with, but it has been thrust upon real estate agents, settlement agents and mortgage brokers. We fully support the idea of stamping out money laundering; we are just hesitant about the way it is being done, and hope that our clients understand and become accustomed to the process.

From 1 July 2026, identity verification becomes an essential part of every property transaction across Australia.

At Davey Real Estate, we’ll guide you through every step of the process, explain what’s required, and help make the experience as simple and stress-free as possible.

If you’re considering buying or selling and would like to understand how these changes may affect you, feel free to get in touch. I’m always happy to help.

Verification of Identity – How-to-guide

Disclaimer
This article contains general information only and should not be relied upon as legal or financial advice. Requirements may vary depending on your individual circumstances, and independent professional advice should be sought where appropriate.