AML Laws For Conveyancers: What To Know Before July 2026

Australia’s Anti-Money Laundering and Counter-Terrorism Financing laws are changing, and conveyancers should be paying close attention.

The reforms are expected to bring more property-related services into Australia’s AML/CTF regime, including certain services provided by lawyers, conveyancers and other professionals involved in property transactions.

Many newly regulated businesses are expected to need to comply from 1 July 2026, so conveyancers should start reviewing their workflows and legal documents before the new obligations commence.

For conveyancers, the key issue is not just whether an AML policy is required. It is how AML/CTF checks may fit into the practical conveyancing workflow - including client verification, source of funds questions, settlement timing, privacy disclosures, record keeping and engagement terms.

This article explains what conveyancers should know before July 2026 and which legal documents may need to be reviewed.

Why AML Laws Matter For Conveyancers

Property transactions can create money laundering risks because they involve high-value assets, large transfers of money and, in some cases, complex ownership structures.

Conveyancers are often closer to the legal transfer and settlement process than other parties in a property transaction. They may help prepare or review transaction documents, coordinate settlement, verify identity, communicate with clients and manage instructions connected to the transfer of property.

That makes conveyancing different from general real estate sales work. A real estate agent is usually focused on listing, marketing, inspections, offers and agency appointments. A conveyancer is usually closer to the legal transfer and settlement process.

This means conveyancers may need to think carefully about when AML/CTF checks happen, what information is collected, who reviews concerns, and what happens if a client does not provide the required information before key transaction milestones or settlement.

Are Conveyancers Covered By The New AML Laws?

Conveyancers should not assume they are automatically captured or automatically excluded. AML/CTF obligations depend on the specific services being provided.

For conveyancers, this means looking closely at the actual work performed in a property transaction. This may include preparing or lodging transfer documents, assisting with the legal transfer of real property, coordinating settlement, or dealing with client instructions connected to a purchase or sale.

A practical first step is to map the services your business provides and assess whether any of them fall within the new designated services. If you are unsure, it is worth getting advice before the new obligations commence.

Client Verification In Conveyancing

Conveyancers are already familiar with verification of identity processes, especially in property transactions. However, AML/CTF compliance may require a broader approach than simply checking that a person is who they say they are.

Affected conveyancers may need to understand who the client is, whether the client is acting for themselves or someone else, and who owns or controls any company or trust involved in the transaction.

For example, a conveyancer may need to ask more questions if a property is being purchased through a company or trust, if the client is overseas, if someone else is providing instructions, or if the transaction structure does not match the client’s explanation.

This does not mean every matter is high risk. The point of a risk-based process is to identify which matters are straightforward, which need more information, and which should be escalated before the business proceeds.

Source Of Funds Questions And Settlement Timing

Source of funds questions or checks are likely to be one of the most practical AML issues for conveyancers.

In a property transaction, funds may come from savings, a mortgage, a family member, a company account, an overseas account, the sale of another property or a combination of sources. In many matters, this will be easy to explain. In others, the source of funds may be unclear or inconsistent with the client’s circumstances.

A conveyancer may need to ask further questions where funds are coming from an unexpected third party, where a client is reluctant to explain the source of funds, where funds are moving through multiple accounts without a clear reason, or where settlement instructions change suddenly.

This is especially important because conveyancing is time-sensitive. If AML checks are left until just before settlement, there may be pressure to proceed even where information is incomplete.

For that reason, conveyancers should consider building AML-related questions into the intake process rather than treating them as a last-minute settlement issue.

Client Money, Settlement Funds And Record Keeping

Some conveyancing practices may be involved in handling or verifying client money, deposit funds or settlement funds. This can create additional AML/CTF risk, especially where funds come from third parties, overseas accounts or sources that do not match the client’s explanation.

Even where a conveyancer does not directly hold client money, they may still need to keep records of the checks completed, the information received, any issues escalated and the reasons a matter was allowed to proceed.

This matters because AML compliance needs to be evidenced. If a question is raised later, the business should be able to show what was checked, when it was checked, who reviewed it and why the matter proceeded.

For conveyancers, this may mean keeping clear records of verification steps, source of funds information, risk assessments, internal escalations, client instructions and settlement-related decisions.

Privacy Disclosures And Collection Notices

AML checks can involve collecting more personal information than a conveyancer would otherwise collect.

This may include identity documents, dates of birth, residential addresses, information about companies or trusts, beneficial ownership details, source of funds information, screening results and information about third parties involved in the transaction.

Privacy documents should reflect this.

A Privacy Policy should explain how the business collects, uses, stores and discloses personal information. A collection notice should explain the specific collection of information at the point it happens.

This is particularly important in conveyancing because information may be collected from or about people who are not simply the named client. For example, a conveyancer may need information about company directors, trustees, beneficiaries, beneficial owners, attorneys, third-party funders or family members contributing funds.

If the business uses electronic verification tools, e-conveyancing or settlement platforms, cloud storage, outsourced admin support or compliance software, the privacy wording should also reflect how information is shared and stored.

Updating Conveyancing Engagement Terms

Conveyancing engagement terms should support the way the business actually handles AML checks.

If a conveyancer needs to verify identity, request source of funds information, ask questions about ownership or control, or pause work while checks are completed, the engagement terms should make that clear.

This is particularly important because conveyancing matters often involve strict deadlines. Clients may assume the conveyancer can proceed to exchange, completion or settlement as long as the usual documents are ready. However, if compliance checks are incomplete, the conveyancer may need to delay or refuse to proceed.

Engagement terms may need to explain that the client must provide accurate and complete information, that further information may be requested, that delays may occur if compliance checks are not completed, and that the conveyancer may be unable to act if required information is not provided.

For law practices providing conveyancing services, engagement wording should also be considered alongside confidentiality, legal professional privilege, professional conduct obligations and any restrictions around tipping off.

Internal Policies And Staff Training

AML compliance is not just a document update. It also needs to be built into the day-to-day conveyancing workflow.

For conveyancers, this may mean having a clear process for when checks happen, who performs them, what information is required, when a matter is escalated and what records are kept.

Staff should understand common red flags. These might include inconsistent identity information, unexplained third-party funds, unusual urgency, last-minute changes to settlement instructions, complex company or trust structures, overseas parties, or clients who refuse to provide basic information.

For a small conveyancing business, this does not necessarily mean building a large compliance department. But it does mean having a process that staff can actually follow.

How Conveyancing AML Risks Differ From Real Estate AML Risks

Although real estate agents and conveyancers can both be involved in a property transaction, their AML/CTF risks are not identical.

Real estate agents are usually focused on listing and marketing the property, managing buyer enquiries, negotiating offers and dealing with agency appointments.

Conveyancers are usually closer to the legal transfer and settlement process. This can include contract review, transfer documents, verification of identity, settlement coordination, client instructions and settlement-related records.

That is why this article focuses on conveyancing workflows, rather than property marketing or agency processes.

What Should Conveyancers Do Before July 2026?

Conveyancers should start by reviewing the services they provide and identifying whether any may be captured by the AML/CTF regime.

From there, it is useful to map the conveyancing workflow: when the client is onboarded, when identity is verified, when source of funds questions are asked, who handles client information, where records are stored and what happens if a matter raises concerns.

Once that workflow is clear, the documents supporting it should be reviewed. This may include conveyancing engagement terms, client onboarding forms, verification of identity procedures, source of funds questionnaires, privacy policies, collection notices, internal AML/CTF policies, escalation procedures, record-keeping policies, staff training materials and contractor agreements.

The aim is to make sure the documents match how the conveyancing business actually operates. If the onboarding form asks for source of funds information, the collection notice should explain why. If staff are told not to proceed until checks are complete, the engagement terms should support that. If contractors or admin staff handle identity documents, their agreements should include appropriate confidentiality and data handling obligations.

Affected businesses may also need broader AML/CTF readiness steps, including AUSTRAC enrolment where required, a compliance lead, a risk assessment, an AML/CTF program, staff training, record keeping and suspicious matter reporting processes. For higher-risk or more complex conveyancing practices, specialist AML/CTF compliance advice may also be needed.

FAQs

Do Conveyancers Need To Comply With AML Laws?

It depends on the services being provided. Some conveyancing services connected with property transactions may need to be reviewed under the AML/CTF regime. Because the rules are service-specific, conveyancers should get advice on whether their actual services are captured.

Why Are Conveyancers Relevant To AML/CTF Compliance?

Conveyancers are involved in property transfers, settlement processes, client verification and, in some cases, client money or settlement fund arrangements. These areas can create money laundering risks, especially where ownership structures, source of funds or client instructions are unclear.

Do Conveyancers Need To Check Source Of Funds?

Affected conveyancers may need to ask source of funds questions where relevant, especially if funds come from third parties, overseas accounts, complex structures or sources that do not match the client’s explanation.

Should Conveyancing Engagement Terms Be Updated?

They may need to be reviewed. Engagement terms should support identity verification, source of funds checks, compliance-related delays, requests for further information and the right to stop acting where required information is not provided.

Are Legal Document Updates Enough For AML Compliance?

No. Legal document updates are only one part of AML readiness. Affected conveyancers may also need risk assessments, AML/CTF programs, staff training, escalation procedures, reporting processes and record-keeping systems.

How Sprintlaw Can Help

Sprintlaw can help conveyancers review and update the legal documents that support AML/CTF readiness.

This may include conveyancing engagement terms, client onboarding forms, privacy policies, collection notices, contractor agreements, data handling clauses and internal compliance policies.

For businesses that need a full AML/CTF program, risk assessment or specialist operational compliance advice, you may also need help from an AML/CTF compliance specialist. Sprintlaw can help make sure your legal documents align with the process you adopt.

Need help reviewing your conveyancing documents before the new AML laws commence? You can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.