As of 1 July 2026, changes to Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) legislation will impact how real estate transactions are conducted across the country.
Under the new requirements, real estate agencies are required to implement customer identification, verification, and due diligence procedures to help prevent money laundering, terrorism financing, and other financial crimes.
As part of these obligations, Magain Real Estate may be required to collect additional information from vendors, purchasers, and other parties involved in a transaction.
What is AML/CTF?
AML/CTF stands for Anti-Money Laundering and Counter-Terrorism Financing. These laws are designed to help prevent criminals from using legitimate businesses and financial systems to conceal the proceeds of crime or fund illegal activities.
The legislation requires certain industries, including real estate, to take reasonable steps to verify the identity of their clients, understand who they are dealing with, and identify potential risks associated with transactions.
Information We May Request
The information requested may include, but is not limited to:
· Identification documents for individuals involved in the transaction.
· Ownership and control information for companies, trusts, partnerships, or other entities.
· Information relating to the source of funds or source of wealth, where required.
· Additional documentation necessary to assess and manage AML/CTF risks in accordance with regulatory obligations.
How Your Information Will Be Used
Any information collected will be used solely for the purposes of:
· Complying with AML/CTF legislation and associated regulatory requirements.
· Verifying identity and ownership information.
· Conducting risk assessments and due diligence checks.
· Maintaining records as required by law.
All information provided will be handled in accordance with applicable privacy laws and our privacy obligations. Information will only be disclosed where necessary to meet our legal and regulatory requirements.
What This Means for You
While these additional verification requirements may result in some requests for documentation during the sales process, they are designed to protect the integrity of the Australian property market and ensure compliance with national legislation. Our team will work closely with all parties to make the process as straightforward and efficient as possible. If you have any questions regarding these requirements, please speak with your Magain representative.
