Australian home buyers are set to benefit from sweeping new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms aimed at reducing the ability of organised crime groups to move illicit money through the property market.
From 1 July 2026, lawyers, conveyancers, real estate agents and accountants will be brought under the AML/CTF regime for the first time, requiring them to verify client identities and scrutinise the source of funds in property transactions.
To help prepare the industry, Australia’s largest property and legal technology provider, InfoTrack, is delivering 26 compliance workshops across NSW, ACT, QLD and VIC in March. Chief Operating Officer and national AML project sponsor Lee Bailie said the reforms introduce long-needed financial transparency into property dealings.
“AML/CTF obligations introduce a level of financial transparency that has historically been inconsistent across property transactions,” Mr Bailie said. “When professionals are required to verify, identity and understand the origin of funds, it becomes significantly more difficult for criminals to participate undetected.”
Australia’s property market has long been identified as vulnerable to money laundering. AUSTRAC has previously estimated that criminals linked to China laundered approximately $1 billion through Australian real estate in 2020. Mr Bailie said illicit capital in the housing market has consequences for everyday Australians.
“Illicit money hasn’t just undermined the integrity of the financial system. It has distorted demand and pushed prices higher, making it harder for first-home buyers and families to compete,” Mr Bailie said. “For legitimate buyers, this is fundamentally about fairness. Criminal actors are not constrained by lending requirements, affordability pressures or commercial logic. AML/CTF controls help ensure all participants in the market are subject to the same scrutiny.”
Mr Bailie said the changes also provide important safeguards for sellers.
“Vendors may unknowingly accept funds derived from criminal activity, which can create legal, financial and reputational complications down the track. Enhanced verification helps ensure that proceeds of sale are not tainted and settlements proceed with greater certainty.”
Closing long-standing verification gaps would reduce Australia’s attractiveness as a destination for laundering through real estate Mr Bailie said.
“Criminal funds tend to move quickly and opportunistically, often entering markets where verification requirements are weakest. Ultimately, these reforms are about ensuring Australians are competing on equal footing. A property market influenced by verified, legitimate capital is not only safer, it’s fairer, more transparent and more resilient.”
