New AML Requirements for Commercial Real Estate

New AML Requirements for Commercial Real Estate from 1 July 2026: What Buyers, Sellers and Trust Deposit Parties Need to Know

From 1 July 2026, the way commercial real estate transactions begin in Australia is going to look a little different. Crew Commercial – along with every other real estate agency, property developer, lawyer, accountant and conveyancer in the country — will become 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 will be required to verify the identity of every party involved through our third‑party verification provider.

This blog explains what is changing, why the regulations have been introduced, and what buyers and sellers can expect when they engage Crew Commercial after 1 July 2026.

What is Changing?

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. From 1 July 2026, agencies like Crew Commercial that broker the sale, purchase or transfer of commercial real estate will be 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

Enrolment with AUSTRAC opens on 31 March 2026, with the obligations themselves commencing 1 July 2026.

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 now, Australia has been 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) has 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 after 1 July 2026, you will be asked to verify your identity before we list or market your property. For trusts, companies and SMSFs, we will also be 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 will go through the same process before we accept an offer or hold a deposit on your behalf. We will 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: Every Party Must Be Verified

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 will be required to verify the identity of every party associated with that deposit — not just the named purchaser on the contract.

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 must each be verified.
• 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 will be using a secure third‑party verification provider. You will 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 license or attend our office.

Importantly, the sensitive identification documents you provide — such as your driver license, passport, or proof of address — are submitted directly to the third‑party provider’s secure platform. Crew Commercial does not see, store, or have access to those documents. We are only notified of the verification outcome (i.e. whether the verification has been completed successfully), which keeps your personal information protected and reduces the data‑security risk of identity documents sitting in our inbox or filing system.

How often should customer due diligence be conducted?

Frequency depends on the determined risk level which is automatically generated based on certain datasets: low risk customers every 3-5 years, medium risk annually, and high risk quarterly or more frequently. Additionally, significant changes in customer behaviour should trigger CDD reviews. The key takeaway is that our agents will be guided on the required frequency based on the results of the AML verification.

What You Can Do to Prepare

For buyers and sellers transacting with Crew Commercial after 1 July 2026:

• 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 Preparing Now

We have been monitoring these reforms closely and are putting the systems, staff training, and technology in place well ahead of 1 July 2026. Our intention is that when commencement day arrives, the new requirements feel like a smooth, professional part of the transaction experience for our clients — rather than a hurdle.

If you have a sale, purchase or leasing transaction planned for the second half of 2026 or beyond, your Crew Commercial agent is happy to walk you through what verification will look like in practical terms.

Frequently Asked Questions

When do the new AML rules start applying to my transaction?

The obligations commence on 1 July 2026. Any new engagement signed with Crew Commercial on or after that date will require identity verification before we provide services.

Will I need to verify my identity again every time I transact with Crew Commercial?

No. Once you have been verified and the records are on file, we are not required to repeat the full process for future transactions, provided your details have not materially changed and there is no reason to refresh the information. We are required to keep records for at least seven years.

Does Crew Commercial see the actual ID documents I upload?

No. The documents are submitted directly to our third‑party verification provider’s secure platform. Crew Commercial is only notified of whether the verification has been completed successfully — we do not see, store, or have access to your ID documents.

Who needs to be identified if I am buying through a family trust?

The trustee, the settlor (with limited exceptions), the appointor or principal, any guardian or protector, and the beneficiaries — including all named beneficiaries in the trust deed. For discretionary trusts the class of beneficiaries is described and recent or expected distribution recipients are identified.

Who needs to be identified if I am buying through a company?

Each individual who directly or indirectly owns 25% or more of the company, plus any individual who otherwise controls the company. Where no individual reaches the 25% threshold, a senior managing official is identified.

What happens if I refuse, or am unable, to complete verification?

If verification cannot be completed, we are not legally permitted to provide the designated service. In practical terms this means we cannot list the property, accept the offer, or hold the deposit until verification is complete.

What if a deposit is paid by someone other than the named purchaser?

We will need to identify the party that contributed the funds and understand the relationship between that party and the named purchaser. This applies whether the contributor is a related company, a family member, or another third party.

Will I be asked about source of funds or source of wealth?

Not in every transaction. Source of funds or source of wealth questions are typically only required for higher‑risk transactions — for example, where a politically exposed person is involved, where funds are being transferred from offshore, or where the transaction does not match a customer’s known profile.

How long does the verification take?

For an individual, the electronic verification process generally takes only a few minutes on a phone or computer. Verification of trust or company structures takes a little longer because additional documents (such as a trust deed or ASIC extract) need to be reviewed.

Is my information safe?

Our third‑party verification provider operates secure infrastructure designed specifically for identity verification, and is subject to Australian privacy law. Crew Commercial is required to keep records of the verification outcome but does not retain copies of your underlying identity documents.

Where do I find more information on AML?

Additional information can be seen on the Austrac website: Austrac

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.