New ID Checks When You Buy or Sell: What's Changed Under the AML/CTF Rules
Since 1 July 2026, real estate agents across Australia have had new legal obligations under the anti-money laundering and counter-terrorism financing (AML/CTF) laws. These rules are now in effect. If you're buying or selling property with PPG Realty, you'll notice one main difference: we need to confirm who you are before we can act on your behalf.
Here's a plain-English guide to what's changed, who it affects, and what to expect.
What are the "Tranche 2" reforms?
Banks, lenders and other financial businesses have carried out customer identity checks for many years under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. In 2024, Parliament passed amendments extending the regime to a second group of businesses, often called "Tranche 2". This includes real estate agents, along with lawyers, conveyancers and accountants providing certain services.
For real estate, the law now covers businesses that broker the sale, purchase or transfer of property on behalf of a buyer or seller. It also covers property developers selling directly to buyers without an independent agent. Agencies providing these services were able to enrol with AUSTRAC, the national financial intelligence agency and regulator, from 31 March 2026, and have had to comply since 1 July 2026.
The aim is simple: to make it harder for criminals to use property to hide or move illegal money, and to protect buyers and sellers from fraud and identity theft.
What it means for sellers
Before we can start marketing your property, we need to verify your identity. Where the property is owned by a company, trust, self-managed super fund or several people, we may also need to confirm who has authority to sell and who ultimately owns or controls the entity (its "beneficial owners").
Our advice: get this done when you sign with us. Finishing it early helps keep your campaign on track.
What it means for buyers
When you're buying through an agent, you may be asked to verify your identity as part of the transaction. If you're buying through a company, trust or SMSF, expect to provide some extra details about the people behind that structure. For most individual buyers, a standard photo ID is all it takes.
What about landlords and tenants?
There's good news here. Under the legislation, property management, residential tenancy agreements and commercial leasing aren't covered on their own. REINSW has confirmed that residential property management generally falls outside the reforms. So if we're simply managing your investment property, you won't need these checks just because we manage it.
The rules do apply if you decide to sell that investment property, just as they would for any other seller.
What we may ask for
Depending on your circumstances, we may need to confirm:
- your full name, date of birth and residential address
- whether you're acting for yourself or for someone else
- details of any company, trust or SMSF involved, and its beneficial owners.
Usually this means an Australian passport or driver's licence. For entities, we may also ask for documents such as company records or a trust deed.
How PPG Realty does it: our partnership with PEXA Clear
To make these checks quick and secure, PPG Realty has partnered with PEXA Clear. It's an AML/CTF compliance platform from PEXA Group, the company behind the PEXA Exchange, which handles most property settlements in Australia. PEXA Clear was developed with identity and compliance platform FrankieOne and built specifically for Australian property transactions.
What it means for you:
- Fast, digital verification. In most cases, you confirm your identity online by taking a selfie that's matched to a photo of your government-issued ID. There's no need to bring documents into the office.
- Secure handling of your information. PEXA Clear is designed to share information securely in line with AUSTRAC's rules and keeps the required records, so your details aren't passed around in emails or paper files.
- Fewer hold-ups. Screening and risk checks run in the background alongside your transaction, so your sale or purchase keeps moving.
Why this matters
Some extra paperwork at the start of a transaction is a small price for a safer property market. These checks help confirm that everyone in a deal is who they say they are, which protects you, the other party, and the community. Over time, they'll become as routine in real estate as they already are when you open a bank account.
Questions? Talk to Tamara
If you're planning to buy or sell and want to know what ID you'll need, we're happy to walk you through it.
Tamara Abdallah, AML Compliance Officer, PPG Realty
Phone: (02) 9597 7372
Email: [email protected]
Prestige Property Group Realty, 6 Belmore St, Arncliffe NSW
Writer: Tamara Abdallah, AML Compliance Officer, PPG Realty
This article is general information only and isn't legal advice.
Sources
- AUSTRAC, "Real estate designated services": https://www.austrac.gov.au/new-austrac/designated-services-newly-regulated-entities/real-estate-designated-services
- Department of Home Affairs, "Regulating additional high-risk services" (AML/CTF Amendment Act): https://www.homeaffairs.gov.au/about-us/our-portfolios/criminal-justice/anti-money-laundering-and-counter-terrorism-financing/anti-money-laundering-and-counter-terrorism-financing-amendment-act/regulating-additional-high-risk-services
- Federal Register of Legislation, AML/CTF instrument F2026L00354 (rental trust account management exclusion): https://www.legislation.gov.au/F2026L00354/asmade
- REINSW, "Do the AML/CTF reforms apply to property managers, strata managers and auctioneers?" (July 2026): https://www.reinsw.com.au/Web/Web/News/REINSW_Updates/2026/July/aml-ctf-scope.aspx
- PEXA Group, "PEXA Group introduces AML/CTF compliance solution: PEXA Clear": https://www.pexa-group.com/content-hub/news/pexa-introduces-pexa-clear/
- PEXA Clear, "How it works": https://www.pexaclear.com.au/how-it-works/