Regulatory Update - AML/CTF Reform
From 1 July 2026, every conveyancer in Australia becomes a formal financial crime gatekeeper.
New laws now apply to your conveyancer
Australia has updated its anti-money laundering and counter-terrorism financing laws — often called AML/CTF laws — and for the first time, these laws now apply to conveyancers, lawyers who do property work, and real estate agents.
For the past 20 years, these rules applied mainly to banks, financial institutions, and casinos. From 1 July 2026, they apply to property professionals too. The reason is simple: real estate is one of the most common ways that criminals attempt to move and hide illegal money, and these laws are designed to stop that.
Why property?
Property transactions involve large sums of money changing hands, often through complex arrangements involving multiple parties, trusts, and companies. AUSTRAC — Australia's financial intelligence regulator — estimates that billions of dollars in illicit funds flow through Australian real estate each year. These laws require professionals like us to play an active role in detecting and reporting suspicious activity.
Most of our clients are doing nothing wrong. But the law applies to everyone, so we need to check everyone equally.
These changes are not optional, and they're not something we've chosen to do. They are a legal requirement for all conveyancing practices in Australia.
What it means for you
What we'll ask you to do
In practical terms, not only will we ask you for identity documents at the start of your matter, but we may also ask you a few questions about your transaction as we go. Here's what each step involves.
- Prove your identity: The existing verification of identity requirement remains. Before we can act on your behalf, we need to verify who you are. You will receive an invite to complete this online via a simple portal.
- Additional searches undertaken: We are required to undertake Politically Exposed Persons (PEP), Sanctions and Adverse Media Checks against all clients as part of our due diligence obligations. These will be undertaken as part of our onboarding process.
- Confirm additional information and the source of your funds (if applicable): We are required to ask you additional questions to ascertain the AML/CTF risk. In some cases — particularly for large or complex transactions — we may ask where the money for the purchase is coming from. For most buyers this is straightforward: a home loan, savings, or the proceeds of a prior property sale.
Example questions
- Has a family member or close business associate been or are they a politically exposed person?
- Are you or a related party operating a charity or other non-profit organisation (NPO)?
- Is the property valued at $1.5 million or more?
If buying or selling through a company or trust
If the property is being purchased or sold in the name of a company or trust, we'll need to understand who ultimately owns or controls that entity. We may ask for company documents and details of directors and beneficiaries.
- Keep your details up to date: If your circumstances change materially during the transaction — for example, if the purchase structure changes or new parties are added — we may need to complete a further check.
Common questions
You might be wondering...
- I've dealt with you before. Do I still need to provide ID?
Yes. Even if we've worked together previously, the new laws require us to complete formal AML/CTF check for every client on every new matter from 1 July 2026. Prior dealings don't carry over under the new regime. - Is my personal information safe?
Yes. Your information is held securely and used only for identity verification purposes in accordance with the Privacy Act 1988. We are required to keep records for seven years under the AML/CTF Act, after which they are destroyed. We do not sell or share your data with third parties except as required by law. - What if I can't provide what's asked?
Under the new laws, we are not permitted to provide conveyancing services without completing identity verification. If we can't verify your identity, we won't be able to act for you. If you have difficulty providing standard documents, please speak with us early and we'll explore what options exist. - Will you report me to the authorities?
We have no intention or reason to report most clients. If we identify a transaction or activity that raises genuine concerns under the AML/CTF Act, we have a legal obligation to report it to AUSTRAC — but this applies only in unusual circumstances. The AML/CTF checks we perform are routine for all clients and are not a signal of suspicion. - Can I send my documents by email or do I have to come in?
Our process enables you to complete your AML/CTF check online. If you have difficulty completing, please contact us so we can explore what other options exist. - Does this slow down my settlement?
Not if you provide your documents promptly at the start of the process. We recommend providing your ID documents at the same time as signing your engagement documents. Delays in providing verification can affect your timeline, so the sooner the better.
