AML Requirements for Commercial Real Estate

AML Requirements Now Apply to Commercial Real Estate: What Buyers, Sellers and Trust Deposit Parties Need to Know

Since 1 July 2026, the way commercial real estate transactions begin in Australia looks a little different. Crew Commercial - along with every other agency that brokers the sale or purchase of real estate, and the property developers, lawyers, accountants and conveyancers providing captured services - is now a “reporting entity” under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

This means that before we can act for a buyer or a seller - and before we can accept a trust deposit - we are required to verify the identity of the parties involved through our third-party verification provider.

This blog explains what has changed, why the regulations were introduced, and what buyers and sellers can expect when they engage Crew Commercial.

What Has Changed?

The Australian Government passed the AML/CTF Amendment Bill in late 2024, extending Australia’s AML/CTF obligations beyond the banking, gambling and bullion sectors and into a new group of “gatekeeper” professions. This is commonly known as Tranche 2.

Real estate agents, property developers, lawyers, accountants, and trust and company service providers are all captured. Since 1 July 2026, agencies like Crew Commercial that broker the sale, purchase or transfer of commercial real estate are required to:

• Enrol with AUSTRAC (Australia’s financial intelligence agency)
• Maintain an AML/CTF Program tailored to the agency’s risk profile
• Conduct Customer Due Diligence (CDD) on every buyer, seller and trust deposit party before providing services
• Identify the beneficial owners behind any company, trust or SMSF involved in a transaction
• Report suspicious matters and certain transactions to AUSTRAC
• Keep detailed records of identification, transactions and compliance activity

Why Have the New Regulations Been Put In Place?

Real estate has long been recognised both in Australia and internationally as one of the sectors most exposed to money laundering. Property is a high-value asset that allows large sums to be moved, parked, or “cleaned” through legitimate-looking transactions. Until these reforms, Australia was one of the only developed economies whose AML framework did not capture real estate, which left a gap that the international Financial Action Task Force (FATF) had been pressing Australia to close for more than a decade.

The Tranche 2 reforms are designed to do three things:

1. Align Australia with international AML standards and remove the risk of further FATF action against Australia.
2. Close the regulatory gap that has allowed criminal proceeds to be laundered through Australian property.
3. Bring “gatekeeper” professionals - those who facilitate large financial transactions into a single risk-based compliance regime.

These reforms are not unique to Australia. The UK, Canada, New Zealand and most EU countries have had equivalent rules in place for real estate professionals for many years.

Who Needs to Be Identified?

For an individual buyer or seller, identification is typically a single photo ID (passport or driver licence) verified electronically.

For a company, we are required to identify each “beneficial owner” - generally any individual who directly or indirectly owns 25% or more of the company, plus any individual who otherwise controls the company. Where no individual meets the 25% threshold, we identify a senior managing official.

For a trust (including SMSFs and family trusts), the requirements are broader. Under AUSTRAC’s rules we are required to identify:

• The trustee (or the directors and beneficial owners of a corporate trustee)
• The settlor of the trust (with limited exceptions, such as where the settlor’s contribution was nominal or the settlor is deceased)
• The appointor, guardian or protector - anyone with the power to appoint or remove the trustee or otherwise control the trust
• The beneficiaries:
  • For trusts that name beneficiaries in the deed, all named beneficiaries must be collected
  • For discretionary trusts that describe beneficiaries by class (for example, “the children of John Smith”), the class is described and any individual who has actually received a distribution in the last three years (or is likely to) is identified
  • For unit or fixed trusts, every unit holder with a 25% or greater entitlement is identified

Where a buyer or seller is purchasing or selling through a trust, family company, or a multi-party structure, every party associated with the deposit will need to be identified. This is the area where the new rules represent the biggest change to the way commercial transactions have historically been handled in Australia.

What Does This Mean for Sellers?

If you are selling a commercial property through Crew Commercial, you will be asked to verify your identity before we list or market your property. For trusts, companies and SMSFs, we are also required to identify the beneficial owners and parties listed in the section above. Depending on the transaction’s risk profile we may also need to ask about source of funds or source of wealth.

In practice this means a small amount of additional paperwork at the engagement stage. Once you are verified, future transactions with Crew Commercial are simpler - we already know who you are.

What Does This Mean for Buyers?

Buyers go through the same process before we accept an offer or hold a deposit on your behalf. We verify your identity, identify the beneficial owners of any purchasing entity, and where required ask for evidence of the funding source for the transaction.

Trust Deposits: Who Must Be Identified

One of the most practical implications of the reforms relates to how we handle trust deposits. When a deposit is paid into Crew Commercial’s trust account, we are required to identify the parties behind that deposit - not just the named purchaser on the contract. Where deposit funds come from someone other than the named purchaser, we must identify that party and understand their relationship to the purchaser.

For example:

• Corporate trustees on behalf of a trust - we must identify the trustee company, the trust itself, and the relevant beneficiaries.
• Multiple contributing parties - joint purchasers, business partners or family members each contributing to the deposit will each need to be identified.
• Funds from a related entity - where deposit funds are sent from an entity other than the named purchaser, we must understand and verify that source.

To keep this process as fast and painless as possible, Crew Commercial uses a secure third-party verification provider. You receive a link via email or SMS, complete the verification on your phone or computer in a few minutes, and we are notified electronically once it is complete. There is no need to email copies of your driver licence or attend our office.

Importantly, the sensitive identification documents you provide — such as your driver licence, passport, or proof of address — are submitted directly to the third-party provider’s secure platform, never emailed to us or stored in our systems. As part of the verification, a small number of trained, authorised Crew Commercial staff view your identification within the platform to complete a required check — comparing your photo against your identity document. That access is strictly limited, logged, and used only to complete your verification. No copies of your documents or images are ever saved to Crew Commercial’s systems — we retain only a summary verification report with document numbers masked, and the platform automatically deletes the detailed verification report approximately 90 days after completion.

How often should customer due diligence be conducted?

Review frequency is set by the customer’s risk rating: low-risk customers are reviewed every 3 years, medium-risk every 2 years, and high-risk every 12 months. Significant changes in a customer’s details or behaviour can also trigger a review. In practice, most real estate transactions are resolved well within 12 months, so many customers will never need a periodic review at all — our agents are guided by the verification platform on when a review is due.

What You Can Do to Prepare

For buyers and sellers transacting with Crew Commercial:

• Make sure your photo identification is current
• Have details of any trust, company or SMSF involved in the transaction ready
• Be ready to provide details of every party associated with the deposit
• Respond to our verification link promptly so your transaction is not delayed at a critical point

Crew Commercial Is Ready

We monitored these reforms closely in the lead-up to commencement and put the systems, staff training, and technology in place well ahead of 1 July 2026. Our aim is that the requirements feel like a smooth, professional part of the transaction experience for our clients — rather than a hurdle.

If you have a sale or purchase planned, get in touch or reach out directly to your Crew Commercial agent — we’re happy to walk you through what verification looks like in practical terms.

Frequently Asked Questions

DISCLAIMER: This blog is general information only and is not legal or financial advice. The AML/CTF Tranche 2 reforms are complex and the obligations summarised here continue to be refined by AUSTRAC. Buyers and sellers with structuring questions should obtain advice from their solicitor or accountant.