What is AML/CTF in property (and what it means for buyers and sellers in WA)

If you’re buying or selling property in Western Australia from July 2026, you may start hearing a new acronym: AML/CTF. This stands for Anti-Money Laundering & Counter-Terrorism Financing. It sounds technical (and a little intimidating), and (what on earth does it have to do with your property settlement??), but the reality is much simpler than it seems.

In short? It’s a new set of rules designed to improve security in property transactions. And while it will change a few parts of the process, most buyers and sellers won’t notice many changes at all, especially when you’re working with the right settlement agent.

What is AML/CTF?

AML/CTF stands for Anti-Money Laundering and Counter-Terrorism Financing. These are laws overseen by AUSTRAC designed to prevent criminals from using legitimate systems (like property transactions) to:

• Hide illegal money

• Move funds through the financial system

• Fund criminal or terrorist activity

While Australia already has AML laws in place for banks and financial institutions, these rules are now expanding to include property-related professionals, including conveyancers and real estate agents.

This expansion is often referred to as “Tranche 2” reforms, and they are set to come into effect from July 2026.

Why is AML/CTF being introduced to property transactions?

Property is one of the largest financial transactions most people will ever make. Because of this, it is also a common target for financial crime. The new AML/CTF rules are designed to:

• Increase transparency in property transactions

• Strengthen existing identity verification processes

• Ensure funds used in purchases are legitimate

• Bring Australia in line with international standards

For everyday buyers and sellers, there won’t be much impact. Instead, what you may notice is some duplication of questions and checks across the different parties in the property process, with your real estate agent and conveyancer both being required to comply.

How AML/CTF will affect buyers and sellers

From a client perspective, the changes are actually quite straightforward.

1. ID checks will happen earlier

Right now, we get most buyers and sellers to complete their Verification of Identity (VOI) once the contract becomes unconditional. Under AML/CTF, identity checks will move earlier in the transaction (within 28 days of the contract acceptance), and must be completed before key steps can progress.

You may hear terms like KYC (Know Your Customer) and CDD (Customer Due Diligence). But simply put, this just means the process we follow to confirm your identity earlier and more thoroughly.

2. You may be asked about your source of funds or source of wealth

In certain circumstances (like cash purchases over a particular price threshold) , we will be required to understand where funds are coming from. This might include asking you questions like:

• Where did your deposit come from?

• Are funds coming from overseas?

• Where/how did you acquire your funds for the purchase?

For most buyers, these questions will be straightforward and simple to answer (if not slightly onerous).

3. There may be a little more documentation

You may be asked to provide:

• Additional identification documents (although in most cases, current VOI processes are more robust than the ID documents required for KYC)

• Supporting documents for your funds

• Information about any entities involved (e.g. trusts or companies)

Again, this is simply formalising what is already happening in many transactions.

4. Timing will matter a little more

Because these checks will happen earlier, it will be important to complete your ID verification promptly and provide the requested documents without delay. Leaving things to the last minute could slow down the process, as your conveyancer will be unable to proceed with the transaction until they have satisfied their CDD checks (including your KYC).

What stays the same?

This is the part most of our clients are relieved to hear. For buyers and sellers, the overall process of buying or selling property in WA doesn’t fundamentally change. It still runs through your settlement agent, and still follows the same contract and settlement structure.

AML/CTF doesn’t make property transactions harder. Instead, we’re choosing to look at it as simply adding an extra layer of security and verification behind the scenes.

How North Shore Conveyancing is preparing

At North Shore Conveyancing, we’ve been preparing for these changes well ahead of time. We’ll be partnering with easyAML, powered by Scantek, to manage our AML/CTF requirements. This is important for a few reasons:

• They're ISO 27001 certified, meeting international information security standards

• All data is stored securely in Australia

• No copies of your ID are stored on local devices

• The process is fully digital and can be completed from your phone

Because we’ve already been using Scantek for ID checks since launching, this will feel like a natural extension of the process our clients are already familiar with. We’ll begin rolling this out from June 2026, so everything is running smoothly before the rules officially come into effect in July.

What you need to do as a buyer or seller

The good news? Not much.

But there are a few simple things that will help keep your transaction running smoothly:

• Have your ID ready and accessible (don’t pack it in a moving box!)

• Respond promptly to any requests for information

• Be prepared to answer simple questions about your funds

• Engage your settlement agent early

That’s it.

With the right guidance, we promise that this will feel like a seamless part of the process.

FAQ: AML in property in Australia

What is AML/CTF in property?

It refers to laws designed to prevent money laundering and financial crime in property transactions.

When do AML/CTF rules start in Australia?

For property transactions, the new rules are expected to apply from July 2026.

Will I need to provide more ID when buying a house?

You may need to complete identity checks earlier and provide slightly more information than before.

What is ‘source of funds’?

It means explaining where your money for the purchase comes from (e.g. an Australian bank account or loan).

Will AML/CTF delay settlement?

Not if everything is completed early. Delays usually only happen if documents or information are provided late.

The bottom line when it comes to AML/CTF reforms

AML/CTF might sound complex, but for buyers and sellers, it simply adds a bit more structure and security to the process. And when you choose to partner with a conveyancer who has the right systems and support in place, most clients will barely notice the difference.

If you’re buying or selling property in Perth and want to make sure everything runs smoothly under the new requirements, North Shore Conveyancing is here to guide you every step of the way.

Contact Katelyn today for clear, practical advice and a secure, seamless settlement experience.