Starting 1 July 2026, Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms expand to parts of the property sector. If you are buying a property or selling one after this date, you may notice some extra steps — additional identity checks, and questions about how you are paying for the property.
If that sounds daunting, it shouldn’t. Being asked for this information does not mean you are suspected of doing anything wrong. These checks are part of what’s called customer due diligence, and they apply to everyone. They exist to help prevent money laundering, terrorism financing and other financial crime from moving through the property market — much like the identity checks a bank already runs when you open an account.
What are Australia’s new anti-money laundering laws?
Australia’s AML/CTF laws require certain businesses to know who their customers are, understand the money flowing through a transaction, and report anything genuinely suspicious to the financial intelligence regulator, AUSTRAC. Until now, these obligations mainly applied to banks, casinos and money remitters. The 2026 reforms — often called the “Tranche 2” reforms — extend them to more professions, bringing Australia into line with international standards set by the Financial Action Task Force (FATF).
What changed from 1 July 2026?
From 1 July 2026, certain property-related professionals are brought into the AML/CTF regime when they provide regulated (“designated”) services. For conveyancers and property lawyers, that includes things like preparing contracts, conducting title searches and holding funds in trust as part of a sale or purchase. (AUSTRAC — About the reforms; Home Affairs — Overview of the AML/CTF Amendment Act.)
Why were the laws updated?
Property is an attractive way to move or hide illegally obtained money — large sums change hands, and a home can store value quietly for years. By bringing property professionals into the regime, the reforms are designed to make it harder for criminals to misuse property transactions, while keeping the process straightforward for ordinary buyers and sellers.
Who is affected by the new AML laws?
The expanded rules apply to real estate agents, conveyancers, lawyers, accountants, and trust and company service providers when they provide designated services. For you as a buyer or seller, the practical effect is that the professional helping with your transaction — including your conveyancer — now has to verify your identity and, in some cases, understand where your funds are coming from before they can act.
What do the new AML laws mean for property buyers?
In day-to-day terms, most buyers will notice three things: a more thorough identity check, a question or two about how the purchase is being funded, and — for some buyers — a request for supporting documents. Here’s what each looks like.
More identity checks
You will likely be asked to provide photo identification and some basic personal details so your conveyancer can confirm you are who you say you are. This is a more consistent, formalised version of the verification of identity process already used in Victorian conveyancing.
More questions about how you are paying
You may be asked whether you are buying with a home loan, personal savings, gifted money, funds transferred from overseas, the proceeds of another sale, or some combination. This isn’t nosiness — it’s a required part of the new checks.
Extra checks for some buyers
Depending on your circumstances, some buyers will need a little more. If you are buying through a trust, a company or another legal arrangement, your conveyancer may need additional information about the entity and the people behind it.
Why do I need to prove where my money came from?
Under AUSTRAC’s framework, regulated professionals must understand where the money used for a property purchase has come from before providing certain designated services. If you are asked, “where are these funds from?”, the honest answer to why is simply: the law now requires your conveyancer to ask.
What is source of funds?
“Source of funds” means where the money for this specific property purchase came from — the actual dollars going towards your deposit and settlement.
Common examples of source of funds
- Salary or wages
- Personal savings
- Sale of another property
- Investment proceeds
- Business income
- Inheritance
- A gift from parents or family
Why your source of funds matters
Regulated professionals need to be satisfied that the funds make sense for the transaction and for your circumstances. In the vast majority of cases this is a quick, common-sense confirmation — a payslip, a bank statement, or a short note explaining a gift.
Source of funds vs source of wealth: what’s the difference?
These two terms sound alike but mean different things and you may hear both.
Source of funds
The money used for the specific purchase — for example, the $120,000 sitting in your account that will become your deposit.
Source of wealth
How a person built their overall wealth over time — their broader financial story, rather than one transaction.
A simple example
Your source of funds for a deposit might be a $100,000 gift from your parents. Your parents’ source of wealth — if that ever needs to be understood — might be decades of employment income, business income or property investments. Most buyers will only ever be asked about source of funds
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What documents do you need under the new AML laws?
The documents depend entirely on your situation — not every buyer needs every document. Your conveyancer will tell you what’s relevant. As a guide, requests usually fall into three groups.
Identity documents
- Drivers licence
- Passport
- Other photo identification
Payment and finance information
How you are funding the purchase, for example:
- Home loan
- Savings
- Gifted deposit
- Overseas transfer
- Sale proceeds
Documents that show where your money came from
Depending on the above, you might be asked for:
- Bank statements
- Payslips
- Loan approval
- A gift letter
- A property settlement statement
- Inheritance documents
- Investment sale records
- Business income records
- Expert Tip
The single most common cause of a last-minute AML hold-up we see isn’t anything suspicious — it’s a large deposit that lands in a buyer’s account with nothing to explain it. If a family member is gifting you money, do two things at the time of the gift, not at settlement: have them sign a short letter confirming it’s a gift (not a loan), and save the bank record of the transfer.
Get that ready upfront and a potential settlement delay becomes a two-minute formality.
When do AML checks happen when buying property?
The timing varies depending on who is involved and what service they are providing, but checks generally fall at one of three points.
After your offer is accepted
Once you are the successful purchaser, you may be asked to confirm your identity and provide initial information.
During the conveyancing process
Your conveyancer or lawyer may need to complete their own checks before progressing certain parts of the transaction, such as preparing or exchanging documents and handling funds. This is a good time to have your contract reviewed and your paperwork in order.
Before settlement
If something still needs verifying, additional information may be requested in the lead-up to settlement.
Common property-buying scenarios
“I’m using my savings for the deposit” – You may be asked for bank statements showing your savings history over a period of time.
“My parents are helping with my deposit” – Gifted deposits are very common and completely fine. You’ll typically need a short gift letter confirming the money is a gift (not a loan), plus a record of the transfer.
“I’m transferring money from overseas”– Expect to provide overseas bank statements, international transfer records and, where relevant, currency-exchange records.
“I’m selling one property to buy another“ – A settlement statement and evidence of your sale proceeds will usually cover it.
“I’m buying through a company or trust” – Additional information may be needed about the entity, its beneficial owners and the legal arrangement.
Will the new AML laws delay my property settlement?
For most people, no. Straightforward transactions with clear documentation should proceed as normal — provided the information is supplied early.
When delays are unlikely
If your funding is clear and your documents are ready, the checks happen quietly in the background and shouldn’t affect your timeline.
What can cause delays?
Delays tend to come from missing, unclear, inconsistent or late documents — for example, a large deposit that appears in an account with no explanation.
How to avoid delays
Respond promptly, keep your records handy, and ask your conveyancer early what documents they’ll need for your situation. A little preparation up front removes almost all the risk.
What happens if you can’t provide the required information?
Regulated professionals have legal obligations they must meet, so this part matters — but there’s no need for alarm.
Can the transaction still proceed?
It depends on what’s missing and whether your conveyancer can still satisfy their obligations. Often there is more than one acceptable way to evidence something.
What should you do if you’re unsure?
Talk to your conveyancer early. They can explain what alternative evidence may be acceptable and help you put it together before it becomes a problem.
Do the new AML laws apply in Victoria?
Yes. The reforms are federal and apply across Australia, including Victoria. Melbourne and Victorian buyers and sellers can expect to encounter these checks when transacting through a conveyancer, lawyer or real estate agent.
Do the new AML laws affect sellers too?
They can. Depending on the services being provided, sellers may also be subject to identity verification and customer due diligence — so if you are selling a property, it’s worth being ready to confirm your identity as well.
How Haitch Conveyancing can help
At Haitch Convey, we’re already set up to handle these requirements smoothly. We’ll tell you exactly what information is relevant to your purchase or sale, help you prepare the right documents early, and keep your transaction moving so the new checks don’t hold up your settlement. If you have a question about what you’ll need, get in touch before you start — a quick conversation now saves stress later.
