The Anti- Money Laundering and Counter- Terrorism Financing Act 2006 (Cth) (“AML Act”), sets out the checks, questions and processes that will soon be implemented to prevent criminals from using property transactions to turn “dirty” (illegal) money into “clean” (legal) money.

These changes aim to deter money laundering and terrorism financing by making it harder for criminals to use property transactions to conceal or legitimise illicit funds.

The professions directly affected include solicitors, conveyancers, and real estate agents. These professionals will work alongside banks, brokers and casinos who already operate within this framework to detect and disrupt money laundering and terrorism financing activities.

 How will this affect you?

Clients need to comply with the AML Act by providing additional compulsory details when engaging in property transactions. This may include completing Verification of Identity checks, providing proof of address, financial records, information about ownership structure, the purpose of the purchase, and the source of the purchase funds.

It is understandable that these additional requirements can create frustration, especially when there is a long-standing relationship with an existing client. However, these requirements are mandatory, and failure to comply can result in substantial monetary penalties. By providing the requested information in a timely manner, delays can be avoided.

When will this commence?

The AML Act is already in force. Solicitors, conveyancers, real estate agents and clients must comply with its requirements from 1 July 2026.

Have more questions?

Contact us on 02) 4928 7300.