The Australian Transaction Reports and Analysis Centre (AUSTRAC) is Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regulator and financial intelligence agency. It works to detect, prevent and disrupt money laundering, terrorism financing, proliferation financing, and other serious criminal activity by overseeing businesses that provide designated financial and professional services.

As part of its role, AUSTRAC regulates a range of industries, including banks, financial service providers, gambling services, and, from 1 July 2026, conveyancing businesses and legal practices involved in property transactions.

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.

AUSTRAC has a lot of great resources available for conveyancers here.

There is extra support from AUSTRAC in meeting your AML/CTF obligations, you can find a range of additional resources on the AUSTRAC website to support you at every stage:

·     Preparing for our new enrolment forms

·     New enrolment form questions

·     Program starter kits which were co-designed with industry to help typical small businesses in tranche 2 sectors meet their AML/CTF obligations.

·     AUSTRAC AML/CTF essentials checklist to guide members through steps to help prepare for regulation.

·     AML/CTF program quick guide outlines the key components of an AML/CTF program.

·     AML/CTF obligations factsheet includes a summary of what members need to do to comply with AML/CTF obligations.

·     AML/CTF essentials webinar series that are designed to help members prepare for AML/CTF obligations:

o  Introduction to AUSTRAC

o  AML/CTF obligations

o  Money Laundering, terrorism financing and proliferation financing

o  Outsourcing

AUSTRAC have a range of informative videos available on their YouTube channel which we encourage you to visit.

Explain to your customers why your business may ask for more information and how these checks help prevent money laundering and financial crime.

Download: Customer poster for newly regulated businesses: Helping prevent money laundering and financial crime (PDF, 125.76KB)

AICSA has a great list of AML/CTF related recordings in our Resource Library – make sure to check it out! 

We have also been sending out Member Alerts, which can be found in our Members Resource Manual under AML/CTF Alerts. 

We might have some upcoming Professional Development related to AML/CTF – have a look here. 

AML/CTF Frequently Asked Questions for Conveyancers

These FAQs bring together questions raised by AICSA and responses provided directly by AUSTRAC. Repeated or overlapping material has been consolidated for easier use. One response provided by PEXA is identified separately.

Important Disclaimer: The answers below reflect AUSTRAC guidance supplied to AICSA and should be read together with the linked AUSTRAC guidance, the AML/CTF Act and the AML/CTF Rules where relevant.

1. Designated services and when AML/CTF obligations apply

What professional designated services may apply to conveyancers?

The professional designated services that may apply to conveyancers are listed in Table 6 of section 6 of the AML/CTF Act. They include:

• assisting in the planning or execution of a transaction to sell, buy or transfer real estate (item 1)
• assisting in the planning or execution of a transaction to sell, buy or transfer a body corporate or legal arrangement (item 2)
• receiving, holding, controlling or managing a person’s property to help in the planning or execution of a transaction (item 3)
• assisting in organising, planning or executing a transaction for equity or debt financing relating to a body corporate or legal arrangement (item 4)
• selling or transferring a shelf company (item 5)
• assisting in the planning or execution of the creation or restructuring of a body corporate or legal arrangement (item 6)
• acting, or arranging for someone to act, on behalf of a person in particular positions in a body corporate or legal arrangement (items 7-8)
• providing a registered office address or principal place of business address of a body corporate or legal arrangement (item 9).

Further guidance: Professional designated services – AUSTRAC

What conveyancing activities are captured by item 1 of Table 6?

Item 1 applies where a conveyancer helps a person plan or carry out a transaction to buy, sell or transfer real estate, or acts on the person’s behalf in that transaction, in the course of carrying on a business.

Activities that directly advance the transaction may include:

• preparing, reviewing or lodging a contract of sale or transfer of land instrument
• researching property titles, strata documents or land use specifications
• coordinating with financial institutions regarding payments and discharge of mortgage for the transfer
• holding funds for a buyer and disbursing trust funds at settlement, or organising release of a deposit to the seller
• preparing for financial settlement
• preparing documents to be provided to a registry authority for transfer of real estate on behalf of a client.

The source guidance also identifies an exclusion for transactions that occur to comply with, or give effect to, a court or tribunal order, including certain deceased-estate and family-law transfers.

Further guidance: Professional designated services – AUSTRAC

When does a conveyancer start providing a designated service?

A person starts providing a designated service when they act on instructions in relation to a relevant transaction and their assistance directly advances that transaction. General advice, influence or ancillary services that do not directly advance the transaction are not sufficient on their own.

For a transaction to buy, sell or transfer property, a relevant transaction will typically exist when there is at least one buyer and one seller, even if they are not specifically identified. The source material states that this will generally be:

• for a private treaty sale, or where an auction does not meet reserve: when a buyer and seller agree, verbally or in writing, to the sale price before payment of a deposit or exchange of contracts
• for an auction that meets reserve: when a buyer is successful at auction.

Example from AUSTRAC: a firm may give general advice and accept instructions before a real estate transaction exists. If the buyer later succeeds at auction, the firm starts providing the designated service at that point.

Further guidance: Professional designated services – AUSTRAC

When do the new obligations apply?

From 1 July 2026, a conveyancer that provides one or more designated services with a geographical link to Australia must comply with the AML/CTF Act and Rules.

Further guidance: Geographical link requirement – AUSTRAC

2. Real estate transactions and practical conveyancing scenarios

What does “real estate” mean for item 1?

The term “real estate” covers real property ownership and some ownership-like leasehold interests. It includes interests in Australian land such as:

• fee simple interests
• leasehold interests of more than 30 years
• land use entitlements, including certain rights to occupy land arising through shares, units, leases or licences.

Examples in the source material include 99-year leases in the ACT, crown and pastoral leases, and residential site agreements where the interest in land exceeds 30 years. Equivalent foreign interests may also be covered, but AML/CTF obligations only apply where the designated service has a geographical link to Australia.

Further guidance: Geographical link requirement – AUSTRAC

What interests are excluded from the definition of real estate?

The source material identifies the following as excluded:

• leases of 30 years or less
• incorporeal hereditaments, such as easements and restrictive covenants
• mortgagee interests
• dwellings not attached to land where the resident owns the dwelling but leases the land, such as some caravan parks and retirement villages.

For leases, are options or renewals counted when applying the 30-year threshold?

AUSTRAC advised AICSA that “30 years or less” refers to the initial lease term. Options for further terms or possible renewals are disregarded. For example, an initial 25-year lease with an option for a further 10 years would still fall outside the definition of “real estate” for this purpose. AUSTRAC indicated that it intends to further clarify this point in its guidance.

Does a transfer need to involve payment or other consideration to be a designated service?

No. The source material states that the sale, purchase or transfer of a qualifying real estate interest may be a designated service whether or not payment or other consideration is involved. An example is a conveyancer assisting a parent to transfer a family home to a child without consideration.

Does preparing a Form 1 for a land agent count as a designated service?

AUSTRAC advised that the conveyancer should first consider who the client is. If the service is provided to the land agent, it may be an ancillary service and may not be covered by item 1. If the agent refers the vendor to the conveyancer and the conveyancer provides the service directly to the vendor, it is more likely to be an active step that directly advances the sale of real estate.

Further guidance: Professional designated services – AUSTRAC

3. Customer due diligence (CDD), onboarding and verification

Who must be identified as part of customer due diligence?

A business must establish the identity of:

• the customer
• the beneficial owners of the customer
• any person acting on behalf of the customer, together with their authority to act
• any person on whose behalf the customer is receiving a designated service.

This is done by collecting and verifying KYC information appropriate to the customer type and circumstances.

Further guidance: Initial CDD guides by customer type – AUSTRAC

How do AML/CTF CDD obligations interact with ARNECC Verification of Identity, Registrar-General requirements and other identification processes?

AUSTRAC advised that ARNECC VOI requirements and Registrar-General requirements serve a different purpose from customer due diligence under the AML/CTF Act, and AUSTRAC is not able to directly compare the schemes or their respective requirements.

However, reporting entities are encouraged to consider whether information and documents collected for other legal obligations may also be suitable for meeting CDD requirements under the AML/CTF Act.

Can identifier declarations still be used?

AUSTRAC has not directly compared identifier declarations under other schemes with AML/CTF requirements. Businesses are encouraged to assess whether information and documents collected for other legal obligations are also suitable for meeting their CDD obligations under the AML/CTF Act.

What can a conveyancer do before initial CDD is completed?

Initial CDD must ordinarily be completed before providing a designated service, unless delayed initial CDD is available in the particular circumstances. Delayed initial CDD is available only where delaying CDD is essential to avoid interrupting the ordinary course of business and poses only a low additional ML/TF risk.

A practical starting point is to identify which activities are themselves designated services. Activities that do not yet amount to providing a designated service may be capable of being undertaken before CDD is complete.

Further guidance: Delayed initial customer due diligence – AUSTRAC

Further guidance: Professional designated services – AUSTRAC

Can a PEXA Exchange workspace be opened before all AML/CTF checks are completed?

PEXA advised AICSA that a PEXA Exchange workspace can be opened and practitioners can proceed with the workspace. PEXA also stated that AML checks must be conducted on the client before settlement and noted that practitioners may interpret the CDD timing requirement as arising earlier in the matter.

This response was provided by PEXA, not AUSTRAC. The AUSTRAC guidance above should be used to determine when initial CDD must be completed in relation to a designated service.

What happens if the purchaser changes after contract execution but before settlement?

AUSTRAC advised that the reporting entity must consider whether the service is now being provided to a different customer. If so, CDD should be undertaken for the new customer before providing the designated service, unless an exemption applies.

For example, if a client originally intended to acquire property in their own name but later decides to hold title in a company or trust, different CDD requirements may apply and further information and documents may need to be collected and verified.

Will there be more practical guidance on companies, trusts and beneficial ownership?

AUSTRAC advised that it has developed guidance to help reporting entities identify individuals who must be recognised as having ownership or control. The conveyancing program starter kit also includes a beneficial ownership process with step-by-step instructions for determining ownership and control and identifying information and documents that may be collected.

AUSTRAC indicated that it will consider expanding its guidance with further examples, particularly for identifying ownership and control of trusts.

Further guidance: Conveyancing program starter kit – AUSTRAC

Does a conveyancer need to complete CDD on a purchaser whose deposit is held in the conveyancer’s trust account?

Where the purchaser is the counterparty to the transaction and is not the conveyancer’s client, the purchaser does not become the customer of a designated service simply because their money is paid into the conveyancer’s trust account. Therefore, the conveyancer would not need to collect and verify KYC information about the purchaser or rely on the real estate agent’s CDD checks.

AUSTRAC’s professional services guidance includes information about receiving, holding, controlling or managing a person’s property and explains the circumstances in which this may constitute an item 3 designated service.

The guidance also notes that a person does not become the customer of a designated service simply because their money passes through a reporting entity’s account as part of a transaction in which the reporting entity is acting for someone else. For example, where money is held in escrow, the customer is the direct client, rather than the counterparty who originally paid the money.

Further guidance: Delayed initial customer due diligence – AUSTRAC

Further guidance: Professional designated services – AUSTRAC

4. Enduring Powers of Attorney, capacity and alternative identification

Who is the customer when a conveyancing transaction is conducted under an Enduring Power of Attorney?

The customer is determined by the designated service being provided. For item 1 of Table 6, the customer is the person whom the business is assisting or acting on behalf of in the real estate transaction.

The reporting entity must establish, on reasonable grounds, the identity of the customer and the identity of any person acting on the customer’s behalf, together with that person’s authority to act, when the designated service commences.

Further guidance: AML/CTF Act

Further guidance: Initial CDD for individuals – AUSTRAC

How can CDD be completed where a donor/vendor cannot provide standard identification or cannot practically participate?

Section 6-10 of the Anti-Money Laundering and Counter-Terrorism Financing Rules 2025 provides an alternative pathway where an individual cannot provide or access the required information or evidence because of circumstances beyond their control.

AUSTRAC advised that the reporting entity must take reasonable steps to establish the individual’s identity. Where the individual is the customer, the business must apply a risk-based approach to identifying, collecting and verifying available KYC information and must have AML/CTF policies to mitigate and manage any additional ML/TF risk arising from missing information or evidence.

Alternative identification options may be relevant where a person cannot obtain standard identification, cannot access it due to circumstances beyond their control, or has inconsistent details across identification documents. The business must assess whether those circumstances apply in the individual case.

Further guidance: AML/CTF Rules 2025

Further guidance: Identifying individuals who don’t have standard ID – AUSTRAC

Would a medical practitioner’s letter, available donor identification and file notes form part of an alternative identification process?

AUSTRAC did not state that any single document is automatically sufficient. It advised that reporting entities can use alternative identification options where they take reasonable steps to establish the person’s identity, identify the customer’s ML/TF risk, collect and verify KYC information appropriate to that risk, and mitigate and manage any additional risk arising from the lack of standard information or evidence.

When using alternative identification procedures, reporting entities should consider the individual’s circumstances, discuss the alternative forms of identification available, assess the ML/TF risk profile and use the least invasive identification procedures appropriate to those circumstances. Ongoing CDD should then be applied according to risk.

Further guidance: Identifying individuals who don’t have standard ID – AUSTRAC

Does a medical practitioner or other referee who provides a statement need to undergo CDD?

AUSTRAC referred back to the requirement to identify the customer and any person acting on the customer’s behalf and to establish their authority to act. Its initial CDD guidance states that this requirement applies to representatives of customers who engage with the reporting entity in relation to a designated service.

The source response does not state that a medical practitioner or referee automatically becomes subject to CDD merely because they provide a statement. Reporting entities should determine whether the person meets the relevant criteria under the Act.

Further guidance: Initial CDD for individuals – AUSTRAC

Are PEP and targeted financial sanctions checks still required where a donor lacks capacity?

AUSTRAC advised that reporting entities must establish on reasonable grounds whether a relevant individual is a politically exposed person (PEP) before providing a designated service. This includes the customer and any person acting on behalf of the customer. The process used should be set out in the reporting entity’s AML/CTF policies and reflect the size, nature and complexity of the business.

Reporting entities must also establish on reasonable grounds whether the customer or a person acting on the customer’s behalf is designated for targeted financial sanctions before providing a designated service. DFAT’s Consolidated List can be used for sanctions screening.

Further guidance: Politically exposed persons (PEP) – AUSTRAC

Further guidance: DFAT Consolidated List

Further guidance: Targeted financial sanctions – AUSTRAC

Will AUSTRAC publish more specific Power of Attorney examples or consolidated guidance?

AUSTRAC advised that it is continuing to develop and expand guidance and education materials based on industry feedback. It will prioritise issues according to the number of businesses potentially affected and the risks those issues may pose to Australia’s financial system and broader community.

5. Ongoing CDD, screening and matter monitoring

What should ongoing CDD and matter monitoring look like in a conveyancing practice?

AUSTRAC advised that the program starter kits provide guidance on ongoing CDD within a business relationship. Businesses should assess their existing practices for client communication and engagement and consider how transactions and behaviours can be monitored in a way that is tailored to the business’s operational context while still meeting AML/CTF obligations.

Further guidance: Conveyancing program starter kit – AUSTRAC

Can a firm carry out sanctions, PEP and adverse media screening without a commercial KYC provider?

Yes. AUSTRAC advised that the conveyancing program starter kit includes processes for sanctions checks, PEP checks and adverse media checks without the need to use a commercial provider. These processes are contained in the Process document within the starter kit.

Further guidance: Conveyancing program starter kit – AUSTRAC

6. Privacy, client onboarding and practical AUSTRAC support

What privacy policy requirements should a reporting entity consider?

The Office of the Australian Information Commissioner has published privacy guidance for reporting entities that are subject to the Privacy Act. The guidance explains relevant compliance requirements and includes checklists and practical resources.

Further guidance: Privacy guidance for AML/CTF reporting entities – OAIC

How can firms simplify AML/CTF onboarding for clients?

AUSTRAC has produced program starter kits designed to help small businesses comply with AML/CTF obligations. The kits include documents that can form part of an AML/CTF program, including client onboarding forms for different customer types such as individuals, companies and trusts.

Businesses may use the forms as provided or integrate the required information into existing onboarding forms and processes. For example, a firm can compare the starter-kit onboarding form with its current client onboarding form and add only the fields that are not already captured.

Further guidance: Conveyancing program starter kit – AUSTRAC

Will AUSTRAC provide more practical conveyancing examples and tailor the starter kit further?

AUSTRAC has welcomed examples of typical conveyancing scenarios and standard conveyancing files from AICSA to help it examine practical issues and refine future updates to the conveyancing program starter kit.

AUSTRAC has also advised that it remains committed to refining the starter kits so that they support reporting entities to meet their obligations while remaining practical for day-to-day business operations. It has encouraged ongoing feedback from AICSA and its members.

Further guidance: Conveyancing program starter kit – AUSTRAC

7. Related context: designated services for real estate agents

What real estate designated services may apply to real estate agents?

The source material notes that the designated services that may apply to real estate agents are listed in Table 5 of section 6 of the AML/CTF Act. They include:

• brokering the sale, purchase or transfer of real estate on behalf of a buyer, seller, transferee or transferor in the course of carrying on a business (item 1)
• selling or transferring real estate in the course of carrying on a business selling real estate, where the sale or transfer is not brokered by an independent real estate agent (item 2).

Have a question after reviewing the guidance?

Check our growing AICSA AML/CTF FAQ for answers to common member questions.

Can’t find what you’re looking for?

Submit your question using our online form. Where appropriate, we’ll seek clarification directly from AUSTRAC and update our FAQ so all members can benefit.

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AML/CTF Question

Have a question after reviewing the guidance? Check our growing AICSA AML/CTF FAQ for answers to common member questions. Can't find what you're looking for? Submit your question using our online form. Where appropriate, we'll seek clarification directly from AUSTRAC and update our FAQ so all members can benefit.

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