AML/CTF Compliance Software
Built for Conveyancers
Australian conveyancers face new anti-money laundering obligations under AUSTRAC Tranche 2. Property transfers are a recognised ML/TF risk area. ComplyAU assists you in building your AML/CTF program with property-specific CDD, beneficial ownership verification, settlement monitoring, and trust account compliance — tailored to your state's licensing requirements.
What Tranche 2 Means for Conveyancers
The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 extends Australia's AML/CTF regime to conveyancers for the first time. Under the expanded definition of designated services in s6AA of the AML/CTF Act 2006, conveyancing services are now captured, making conveyancers “reporting entities” subject to the full suite of AUSTRAC obligations.
Property transactions have long been identified by both the Financial Action Task Force (FATF) and AUSTRAC as high-risk for money laundering. Conveyancers are uniquely positioned as gatekeepers in property transfers — you handle identity verification, manage trust account funds, conduct searches, and oversee the settlement process. This makes your role in detecting and reporting suspicious activity critical.
Conveyancing regulation varies significantly across Australian states and territories. In New South Wales, conveyancers hold a separate licence under the Conveyancers Licensing Act 2003. In Victoria, conveyancing is regulated under the Conveyancers Act 2006. In other jurisdictions, conveyancing may be performed exclusively by legal practitioners. The AML/CTF obligations apply regardless of which state regime governs your practice, adding a federal compliance layer to your existing state requirements.
The commencement date is 1 July 2026. AUSTRAC enrolment opens 31 March 2026. Conveyancers should be preparing their compliance programs now to meet the deadline.
Your Obligations Under the AML/CTF Act
The following obligations apply to conveyancers providing designated services under s6AA of the AML/CTF Act 2006.
Enrol with AUSTRAC (s75C)
All conveyancers providing designated services must enrol with AUSTRAC before commencing those services. Enrolment opens 31 March 2026, ahead of the 1 July 2026 commencement date.
Establish an AML/CTF Program (Part 7A)
You must develop and maintain a written AML/CTF program with Part A (risk-based customer identification, ongoing CDD, and transaction monitoring procedures tailored to conveyancing) and Part B (employee due diligence). The program must address the specific ML/TF risks associated with property transfers.
Customer Due Diligence (CDD) (s28–35)
Before providing conveyancing services, you must verify your client’s identity using reliable and independent documentation or electronic verification. This applies to all parties you act for in a property transfer. Enhanced CDD is required for high-risk clients, including PEPs and those from high-risk jurisdictions.
Beneficial Ownership Verification (s28–35 + AML/CTF Rules)
When a property transfer involves a trust, company, or other legal structure, you must identify and verify the beneficial owners. Conveyancers must look beyond the named parties on the contract of sale to determine who ultimately owns or controls the purchasing or selling entity.
Suspicious Matter Reporting (SMR) (s41–49)
If you form a suspicion on reasonable grounds that a matter relates to money laundering, terrorism financing, or another serious offence, you must lodge an SMR with AUSTRAC. In conveyancing, red flags include unusual settlement arrangements, unexplained changes to purchaser details, significant cash components, and transactions inconsistent with the client’s profile.
Tipping-Off Prohibition (s123)
It is a criminal offence to disclose to a client or any other person that an SMR has been, is being, or will be made. For conveyancers managing ongoing settlements, this requires careful management of client communications. Penalties include up to 2 years imprisonment.
Trust Account Compliance (Part 7A + State rules)
Deposit and settlement funds flowing through your trust account are subject to AML/CTF monitoring. You must implement procedures to detect unusual patterns, unexpected sources of funds, and transactions inconsistent with the property being transferred. These overlay your existing state-based trust account obligations.
Record Keeping (Part 10)
All CDD records, transaction records, and AML/CTF program documentation must be retained for a minimum of 7 years. Records must be stored securely and be accessible to AUSTRAC upon request.
How ComplyAU Assists Conveyancers
ComplyAU provides property transfer-specific compliance tools to help you meet your AML/CTF obligations without disrupting your conveyancing workflow. Every feature accounts for the unique requirements of conveyancing practice.
AML Program Generator
AI builds your Part A and Part B AML/CTF program tailored to conveyancing practice. Covers property transfer workflows, settlement procedures, and trust account management with jurisdiction-specific considerations.
Property Transfer CDD
Guided CDD workflows designed for conveyancing. Verify buyers, sellers, and their representatives. Beneficial ownership identification for trusts, companies, and partnerships involved in property transactions.
Suspicious Matter Reporting
Conveyancing-specific red flag indicators with structured SMR forms. Identifies suspicious settlement arrangements, unusual funding sources, and last-minute party changes. Complete audit trail from identification to lodgement.
Jurisdiction-Aware Compliance
Conveyancing is regulated at the state and territory level. ComplyAU accounts for jurisdictional variations in licensing requirements, trust account rules, and professional conduct obligations across all Australian states and territories.
Settlement Process Monitoring
AML/CTF monitoring integrated into your settlement workflow. Flags unusual funding arrangements, unexpected changes to settlement details, and transactions where the source of funds is unclear or inconsistent.
Staff Training Portal
AML/CTF training modules for conveyancing staff. Covers property-specific ML/TF typologies, red flag identification at each stage of the conveyancing process, and reporting obligations. Track completions and issue certificates.
State Licensing and AML/CTF: A Dual Compliance Framework
Conveyancing is one of the few professions where regulation varies significantly across Australian states and territories. The AML/CTF Act creates a federal compliance layer that sits on top of your existing state-based licensing, trust account, and professional conduct requirements.
In practice, this means you need to satisfy both your state regulator and AUSTRAC. A failure to comply with your AML/CTF obligations could also be relevant to your state licensing — for example, it may be considered when assessing whether you remain a fit and proper person to hold a conveyancer's licence.
ComplyAU accounts for these jurisdictional differences. When you set up your profile, you specify your state or territory, and the platform adjusts its guidance, templates, and compliance checklists accordingly. This includes state-specific trust account rules, licensing obligations, and professional conduct requirements that interact with your AML/CTF program.
Frequently Asked Questions
Which conveyancing services are designated services under Tranche 2?
Under s6AA of the AML/CTF Act 2006 (as amended), conveyancing services are designated services. This captures the preparation and execution of property transfers, including the preparation of contracts of sale, conducting searches, managing settlement, and handling trust account funds in connection with property transactions. The scope covers both residential and commercial conveyancing.
How do state licensing requirements interact with AML/CTF obligations?
Conveyancing is regulated at the state and territory level, with different licensing requirements across jurisdictions. In some states, conveyancers are licensed separately (e.g., NSW Licensed Conveyancers), while in others conveyancing is performed by legal practitioners. The AML/CTF obligations apply regardless of how your state regulates conveyancing. A failure to comply with AUSTRAC obligations may also be relevant to your state licensing, creating dual regulatory exposure.
What are the key money laundering red flags in conveyancing?
Key red flags include: purchasers who are reluctant to provide identification, unexplained changes to the purchasing entity close to settlement, significant cash components in the purchase price, purchase prices significantly above or below market value, use of complex ownership structures (especially involving offshore entities), third-party funding from unknown sources, back-to-back or rapid sequential transactions on the same property, and clients who instruct you to rush the transaction or bypass standard procedures.
Do I need to verify beneficial ownership for every transaction?
You must identify and verify the beneficial owners of any client entity that is not a natural person. This means that if a property is being purchased or sold by a trust, company, partnership, or other legal structure, you must determine who the beneficial owners are and verify their identities. For simple transactions where an individual is buying or selling property in their own name, standard CDD on that individual is sufficient.
How does the settlement process change under AML/CTF obligations?
Your settlement process itself does not fundamentally change, but you must overlay it with AML/CTF monitoring. This means verifying identity before you act, monitoring for unusual funding arrangements (e.g., unexpected sources of settlement funds, last-minute changes to funding details), and being alert to red flags throughout. If you form a suspicion at any point, you must lodge an SMR with AUSTRAC without tipping off the client. ComplyAU integrates these checks into your existing workflow.
Does ComplyAU replace the need for professional advice?
No. ComplyAU is a compliance management tool that assists you in building, maintaining, and evidencing your AML/CTF program. It does not provide legal or professional advice. Given the jurisdictional variations in conveyancing regulation, we recommend consulting a qualified AML/CTF professional for advice specific to your practice and state. ComplyAU helps you manage your obligations — the legal responsibility remains with you.
Compliance Solutions for Other Professions
Sources
All information on this page is based on the following primary sources. This page does not constitute legal or professional advice.
- Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Federal Register of Legislation)
- AML/CTF Rules 2024 (Federal Register of Legislation)
- AUSTRAC — Tranche 2 Information (austrac.gov.au)
- AUSTRAC — Enrolment Guidance (austrac.gov.au)
- FATF Recommendations (Financial Action Task Force)
Get Your Practice Ready for Tranche 2
Join the waitlist for early access to ComplyAU. Conveyancing-specific compliance tools that account for your state licensing requirements.
Join the WaitlistAUSTRAC enrolment opens 31 March 2026. Tranche 2 commences 1 July 2026.