Why your real estate agent may ask for identification and payment information

When you buy or sell property in Australia, a real estate agent may ask for identification and information about the transaction. These checks form part of Australia's anti-money-laundering and counter-terrorism financing framework. They are compliance steps, not an accusation that a client has done anything wrong.

Why the rules apply to real estate

Property can be used to move or conceal criminal funds because transactions involve high values and may include companies, trusts or funds from several sources. AUSTRAC now regulates designated real estate services connected with brokering the sale, purchase or transfer of real estate.

What a buyer may be asked to provide

According to AUSTRAC's public guidance, a successful purchaser may be asked for photographic identification showing their full name, residential address and date of birth. A buyer may also be asked:

·       how the property will be paid for, such as through a loan

·       whether a legal arrangement such as a trust is being used

·       whether the buyer is a politically exposed person

·       additional information where the transaction or customer presents a higher assessed risk.

What a seller may be asked to provide

A seller may be asked for identity information and proof that they legally own the property. The timing and extent of checks can depend on the service being provided and the assessed risk. Your solicitor or conveyancer may conduct separate checks for their own obligations.

Does every buyer have to prove the source of every dollar

No blanket statement should be made that every person will be required to prove the source of every dollar. AUSTRAC distinguishes ordinary customer due diligence from enhanced checks. A person may be asked to confirm how the purchase is being funded, and more detailed source-of-funds or source-of-wealth evidence may be requested when required by the agent's risk-based process.

How to make the process easier

·       Provide clear, current identification through the secure channel nominated by the agency.

·       Tell the agent early if a company, trust or another legal arrangement is involved.

·       Ask why information is required, how it will be stored and who will have access.

·       Do not email sensitive documents to an unverified address. Confirm unexpected requests by calling the agency on a known number.

·       Allow extra time where ownership, residency or funding arrangements are complex.

Privacy still matters

AUSTRAC states that information provided to regulated businesses is protected under the Privacy Act 1988. Agencies should collect and manage personal information carefully. Clients should also be alert to impersonation and property-payment scams.

Frequently asked questions

Is the agent suggesting I am involved in money laundering?

No. Identity and transaction checks are standard compliance measures used to reduce criminal misuse of the financial system.

When might a buyer be checked?

For a seller's agent, AUSTRAC indicates the buyer relationship commonly begins when it is reasonably expected the transaction will proceed, typically after an offer is accepted and the contract is signed.

Can a digital driver's licence be used?

AUSTRAC's public guidance says digital driver's licences are an acceptable form of photographic identification.

Next step



If you are buying or selling through TNRE and are unsure why a document has been requested, ask us. We will explain the process and the secure way to provide information.

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