Anti-money laundering (AML) refers to the laws and procedures designed to stop illegally obtained money being disguised as legitimate funds. Real estate is a regulated sector, so property professionals must carry out checks on transactions and report suspicious activity.
Where you’ll see it
You’ll meet AML requirements when buying or selling, especially on higher-value or cash transactions. Agents, developers and others must verify identities, understand the source of funds, and file reports where required particularly for large cash payments.
Why it matters
AML compliance is mandatory, and it affects buyers and sellers directly: you will be asked for identity documents and evidence of where your money came from. Being ready with this documentation keeps a transaction moving rather than stalling on compliance.
What it is not
AML is not an accusation against ordinary buyers. It is a standard regulatory framework applied to everyone. It is also not a single check; it spans identity verification, source-of-funds review and ongoing monitoring.
Example
A buyer purchasing with a large sum is asked to provide ID and evidence of the source of funds before the deal proceeds, as part of the agent’s AML obligations.
Connected documents and parties
ID documents, source-of-funds evidence, transaction records; buyer, seller, agents, regulators.
Going deeper: related reading: know your customer and source of funds declaration.
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Last reviewed: June 2026