New AML/CTF Identity Checks for Property Transactions: What Buyers and Sellers Need to Know

Why your conveyancer now asks for ID

From 1 July 2026, Australia's anti-money laundering and counter-terrorism financing (AML/CTF) laws were extended to cover conveyancers, lawyers, real estate agents and accountants — a reform commonly known as "Tranche 2". Businesses like ours are now regulated by AUSTRAC, the same federal agency that oversees banks, and must complete customer due diligence before providing conveyancing services.

The reason is straightforward: property has long been an attractive channel for laundering money, and Australia is aligning with international standards that most comparable countries adopted years ago. The new rules require the professionals who sit at the centre of property transactions to take reasonable steps to know who they are acting for.

What this means when you engage a conveyancer

The most visible change is identity verification at the start of your matter — before contracts are reviewed or prepared. In practice, you can expect to:

• Provide your full name, date of birth and residential address, verified against photo ID such as a passport or driver licence

• If you are buying or selling through a company, trust or SMSF, provide documents showing who ultimately owns and controls the entity (the "beneficial owners")

• In some higher-risk situations, answer questions about the source of the funds being used for the purchase

These checks now apply to every client, including returning clients, and the law requires records to be kept for seven years. Conveyancers must also monitor for unusual activity and report suspicious matters to AUSTRAC.

Will this slow down my transaction?

It shouldn't — if you prepare early. Most individual buyers and sellers will find the process no more onerous than opening a bank account. The delays we anticipate across the industry will come from clients who leave verification to the last minute, particularly where trusts or overseas parties are involved. Our advice: have your ID ready when you first contact your conveyancer, and if you are purchasing through an entity, gather your trust deed or company documents early.

Be cautious of any provider who skips these checks. Non-compliance carries serious penalties, and a conveyancer who ignores their AML/CTF obligations may not be able to complete your settlement.

How DY Conveyancing handles your information

DY Conveyancing is enrolled with AUSTRAC as a reporting entity. We collect only what the law reasonably requires, verify it securely, and store it in accordance with our obligations. Identity verification is now a standard part of our onboarding for every buyer, seller and transfer client — built into our process so your transaction keeps moving without surprises.

If you have questions about the new requirements or want to get your documents ready before signing a contract, contact DY Conveyancing Melbourne — we're happy to walk you through it.