What is AML/CTF?
AML/CTF refers to Anti-Money Laundering and Counter-Terrorism Financing scheme and the associated legislation. The aim of this legislation is to deter and disrupt illegal activities of money laundering, counter-terrorism financing, fraud and proliferation financing.
What does this mean for the Real Estate Industry?
Form 1st July 2026 the Real Estate Industry is now legally obligated to comply with the AML/CTF legislation when providing a designated service under Tranche 2. Under the act Real Estate agents provide a designated service at 2 points during a property transaction. When a Form 6 appointment is signed by a client, and once again when a contract of sale is executed.
What does this mean for you?
When entering into a Real Estate transaction you will now be required to provide a range of personal details and information relating to the intended transaction. Some of these questions could include:
- Your identity, occupation and countries you are linked to;
- The source of your funds for the intended transaction;
- The services you are seeking from the agent and why;
- If you have ever been a politically exposed person or have relatives or close associates who are or were politically exposed persons; and
- If you are selling the property under a company or trust, who the ultimate beneficial owners are and supporting document to demonstrate this.
We have partnered with industry leaders Reapit Verify, Alpha AML and One AML to ensure our team are properly informed and we have a system as seamless as possible for our clients.
Using Reapit Verify our team will forward to you through a link to complete your identity verification. This is a quick and simple information request using a government identification document (such as drivers license, passport). This allows us to meet our AML/CTF requirements under the legislation.
This verification confirms against government data bases and returns to us as completed and correct. Four Walls Realty does not hold, nor have any access to the identification information you enter into Reapit Verify.
Can I opt out of this process?
Unfortunately, no. We cannot act on your behalf until we have completed our verification and met the AML/CTF requirements. Every Real Estate professional in Australia providing a Designated Service must comply within these laws.
I have already completed this with my bank and/or lawyer, why am I doing this again?
In the legislation there are a variety of professionals that must now complete AML/CTF assessments and verifications. Unfortunately this will mean several checks being carried out across banks, lawyers, accountants and other professional sectors. We understand this may become frustrating, however we must meet our obligations under the Act, or risk large penalties.
Got any questions? We are here to help!
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