AML/CTF: THE NEW FINANCIAL SECURITY OBLIGATIONS NOW APPLYING TO PROPERTY TRANSACTIONS

Why is my conveyancer asking more questions?

From 1 July 2026, the Australian Government has introduced updated Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws. These changes bring the real estate and conveyancing sectors into a global effort to protect the property market from financial crime, such as money laundering and fraud.

As a result, all licensed conveyancers and solicitors in Australia are now “Reporting Entities.” This means they have a legal obligation to “Know Your Customer” (KYC) to a higher standard than in previous years.

These reforms are designed to keep the Australian property market transparent and secure. By providing the requested information promptly, you help ensure your settlement proceeds without delay.

If you have any concerns regarding these requests, please speak directly with your conveyancer. They will be happy to explain the specific legal requirements applying to your transaction.

What this means for you

When you engage a conveyancer to help you buy or sell property, you will notice some changes to the onboarding process. To comply with federal law, your conveyancer must now verify:

Your Identity: This goes beyond the standard Verification of Identity (VOI) you may have done in the past. We may need to sight additional documents or verify details through specific government databases.

Beneficial Ownership: If you are buying or selling through a company or a trust, we are required to identify the individuals who ultimately own or control that entity (usually anyone with a 25% share or greater).

Source of Funds / Source of Wealth: In certain transactions, your conveyancer is legally required to ask about the origin of the funds being used for the purchase. This is a standard procedural check to ensure the integrity of the financial system.

Your Privacy is Protected

Some of the information requested will be sensitive. Please be assured that:

Legal Obligation: Your conveyancer only collects this data because the AML/CTF Act 2006 (Cth) requires them to do so.

Data Security: Your information is handled in strict accordance with the Privacy Act 1988.

Confidentiality: The details you provide are used solely for compliance purposes and are stored in secure, encrypted environments.

Mandatory Retention: By law, your conveyancer must retain these records for seven years, after which they are securely destroyed.

AUSTRAC

Who is AUSTRAC?

The Australian Transaction Reports and Analysis Centre (AUSTRAC) is the Australian Government’s financial intelligence agency and the regulator responsible for anti-money laundering and counter-terrorism financing.

As the industry regulator, AUSTRAC oversees all “Reporting Entities,” including licensed conveyancers and legal practitioners, to ensure they meet their legal obligations. This includes performing Customer Due Diligence (CDD), the process of verifying a client’s identity, understanding the nature of a transaction, and, where necessary, establishing the source of funds or wealth and the destination of payments. These checks are a mandatory part of a conveyancer’s professional standards and are designed to protect the integrity of the Australian property market

AUSTRAC works with legislated reporting entities like your conveyancer to keep the Australian financial system and the property market safe from criminal exploitation. By collecting and analysing financial information, AUSTRAC helps law enforcement agencies detect and disrupt serious crimes, including fraud, tax evasion, and organised crime.

AUSTRAC Resources

For further information on these reforms how these regulations protect the community, please visit the following pages on the AUSTRAC website:

AML/CTF Reforms Overview: A dedicated hub explaining why these laws are changing and which industries are involved.

Information for the General Public: AUSTRAC’s guide for consumers on how financial intelligence keeps Australia safe.

AUSTRAC: An Overview: How financial intelligence keeps the Australian economy safe.