Why identity verification requirements are changing in Australia
International investors and businesses establishing operations in Australia should expect more robust identity verification requirements when engaging with financial institutions and professional advisers.
As part of Australia’s strengthened anti-money laundering and counter-terrorism financing regime, a broader range of businesses is now legally required to verify the identity of clients before providing certain services.
Why identity checks are expanding
Australia has introduced reforms designed to strengthen the integrity of its financial system and improve the detection and prevention of money laundering, terrorism financing and other financial crime.
While identity verification has long been standard when opening a bank account, the requirements now extend to additional industries considered at greater risk of criminal exploitation.
Who may ask for identification?
Foreign investors, business owners and overseas companies may be asked to provide identification when engaging with:
- Banks and other financial institutions
- Real estate professionals
- Lawyers
- Conveyancers
- Accountants
- Trust and company service providers
- Dealers in precious metals and precious stones
- Certain investment and financial service providers
These requirements may apply when purchasing property, establishing a business, investing in Australia or undertaking other regulated transactions.
What information may be required?
The documentation required will depend on the transaction and the service provider, but businesses may request:
- Government-issued photographic identification
- Full legal name
- Residential address
- Date of birth
Business owners may also be asked to provide:
- Business name
- Business addresses
- Australian Business Number, where applicable
Digital driver’s licences may also be accepted by some organisations.
Additional checks for higher-risk transactions
For some transactions or client relationships, regulated businesses may request further information to meet their ongoing compliance obligations.
This may include evidence of:
- Source of funds, meaning where the money for a transaction originated
- Source of wealth, meaning how a person’s overall wealth was accumulated
These enquiries are risk-based and may apply to both new and long-standing clients.
What this means for overseas investors
Identity verification should be treated as a normal part of doing business in Australia rather than an indication of concern about a particular transaction.
Preparing identification documents in advance and being ready to explain the source of investment funds may help avoid delays when:
- Purchasing Australian property
- Establishing an Australian business entity
- Opening bank or investment accounts
- Engaging legal, accounting or corporate advisory services
- Completing significant financial transactions
Privacy protections
Personal information collected during these verification processes is protected under Australian privacy law.
Regulated businesses must handle this information in accordance with the Privacy Act 1988 and their legal obligations.
How Alliott NZ can help
Expanding into Australia or investing from overseas? Navigating local regulatory requirements is easier with experienced advisers by your side. Whether you are establishing a business, purchasing Australian assets or engaging professional services, our team can help you understand your compliance obligations, coordinate with trusted legal and banking specialists, and make your entry into the Australian market as smooth as possible. Contact us to discuss your Australian business or investment plans.
For international businesses entering the Australian market, understanding local compliance requirements is just as important as obtaining tax and commercial advice.
Our team can help businesses prepare for Australian regulatory requirements, coordinate with legal and banking professionals, and support a smoother business establishment or investment process.
Source: AUSTRAC, (30 June 2026) Changes to AML/CTF obligations: What you need to do