Introduction of Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime for conveyancing
From 1 July 2026, Australian law firms that provide conveyancing services will be subject to new obligations under Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws.
These changes were introduced to help prevent money laundering, terrorism financing and other financial crimes. The legislation extends AML/CTF obligations to a range of professions and industries that are considered to be at a higher risk of criminal exploitation, including conveyancing and real estate transactions.
Real property has long been recognised as an attractive asset for money laundering because of its high value, potential for capital growth and ability to generate rental income. As a result, law firms involved in property transactions are now be required to undertake additional checks and verification processes before acting for clients.
To comply with these new legal requirements, our firm must be enrolled with AUSTRAC, maintain an AML/CTF compliance program, verify the identity of our clients and carry out Customer Due Diligence on every conveyancing matter.
As a client, this means you will be asked to provide proof of identity and other relevant information to enable us to complete these checks. We may also need information about the source of funds being used for the transaction, or information regarding your source of wealth. These enquiries may feel more personal than those traditionally required when buying or selling property in Australia. However, they are mandated by federal legislation and must be applied consistently to all clients and transactions.
We appreciate your cooperation and understanding as these changes are implemented. Our team is committed to making the process as straightforward as possible and will guide you through any additional requirements to ensure your transaction proceeds smoothly and in compliance with the new laws.