AML/CTF Compliance for Conveyancers & Settlement Agents in Australia

Why Are Conveyancers in Scope for AML/CTF?

Under the amended AML/CTF Act, a "designated service" includes assisting in the planning or execution of a real estate sale or transfer, such as settlement or transfer of title. This captures conveyancers, settlement agents, and property lawyers acting in a conveyancing capacity.

The rationale is straightforward: conveyancers sit at a critical point in the property transaction where large sums of money change hands. They see both sides of the deal — buyer and seller — and handle the financial mechanics of settlement. This makes them a natural checkpoint for detecting suspicious activity.

If your firm handles property settlements, title transfers, or assists clients with the legal aspects of buying or selling real estate, you are a Tranche 2 reporting entity and must comply with AML/CTF obligations from 1 July 2026. You can use AUSTRAC's eligibility checker to confirm whether your practice is in scope.

What Activities Are NOT Covered by Tranche 2?

Not everything a conveyancing practice does triggers AML/CTF obligations. Activities that do not involve the sale or transfer of property ownership are expected to remain outside scope:

• Property management — managing rental properties for landlords
• Residential leasing — arranging tenancy agreements
• Holiday letting — short-term rental arrangements
• Strata management — managing owners' corporations
• General legal advice — that doesn't relate to a property transfer

However, if any of these activities occur alongside a designated service (like a property sale), the AML/CTF obligations apply to the designated service component.

What Are Your 7 Key AML/CTF Obligations?

Why Must Conveyancers Do CDD on Both Buyer and Seller?

For each party, your CDD process must include:

For individuals

• Full name, date of birth, residential address
• Identity verification (biometric or documentary — minimum one primary photo ID + one secondary)
• Source of funds assessment for high-risk transactions
• DFAT sanctions and PEP screening

For companies

• Company name, ACN/ABN, registered address
• Identity of directors and beneficial owners (anyone with 25%+ ownership or control)
• Verification of the company's existence (ASIC extract)
• CDD on each beneficial owner as an individual

For trusts (including SMSFs)

• Trust name, type (discretionary, unit, hybrid, SMSF)
• Identity of trustee(s), settlor, appointor (if applicable)
• Beneficiaries or classes of beneficiaries
• CDD on each trustee individually
• Note: AUSTRAC rates discretionary trusts as high risk — Enhanced CDD may be required

This means a single property settlement involving a company buyer and a family trust seller could require CDD on 6+ individuals (directors, beneficial owners, trustees, settlor). Your software and processes need to handle this efficiently.

Can Conveyancers Rely on Other Entities for CDD?

One of the most important provisions for conveyancers is the reliance framework. Under the AML/CTF Act, one Tranche 2 reporting entity can rely on another's CDD checks.

In practice, this means:

• A real estate agent can rely on your CDD for the buyer, rather than duplicating the identity checks
• You can rely on a lawyer's CDD if they've already verified a party in the same transaction
• You can share CDD data with the agent on the other side, reducing duplication for the customer

This is significant because it means agents will be sending you CDD requests. Your systems need to handle both performing CDD and sharing verified CDD data with other reporting entities in the transaction.

Conditions for reliance include: the relied-upon entity must be a reporting entity, they must have actually completed the CDD, and you must be satisfied the CDD is adequate for your risk assessment of the customer.

When Can CDD Be Delayed?

Normally, CDD must be completed before you provide a designated service. However, the AML/CTF Act allows delayed CDD when completing it beforehand would disrupt the ordinary course of business.

For conveyancers, the most common delayed CDD scenarios are:

• Auction buyers: CDD can be completed within 20 business days after the auction
• Exchange buyers: CDD can be completed within 15 business days after exchange

These are business days, not calendar days. Weekends and public holidays don't count. Delayed CDD must still be completed "as soon as practicable" — don't wait until the deadline.

Which AML Software Should Conveyancers Use?

Conveyancers have specific requirements that not all AML platforms handle well. Look for software that supports:

• CDD on both parties in a single transaction workflow
• All entity types: individuals, companies, trusts, SMSFs, partnerships
• Beneficial ownership identification for complex structures
• DFAT sanctions and PEP screening with automatic re-screening
• Reliance data sharing with agents and lawyers
• 7-year tamper-proof audit trail
• SMR reporting with tipping-off protections

Options in the market

AMLTranche — Full AML/CTF platform from $179/month. Covers risk assessment, program generation, CDD for all entity types, DFAT screening, SMR reporting, and 7-year audit trail. Free tier available for program generation. Purpose-built for Australian property professionals including conveyancers.

InfoTrack — Free AML compliance centre with per-search fees for identity checks. Integrated into practice management systems. Good option if you already use InfoTrack for searches.

triSearch — AML compliance centre integrated into triConvey. Single workflow for Tranche 2 requirements within your existing conveyancing platform.

PEXA — Building an AML/CTF solution for settlement. Details and pricing not yet fully available. Connects agents, lawyers, conveyancers, and financial institutions.

The right choice depends on your existing tech stack, transaction volume, and whether you need a standalone platform or integration with your practice management software.

What Are the Penalties for Non-Compliance?

AUSTRAC has indicated a transitional approach for Tranche 2 in the first year. However, businesses that make no attempt to comply will not receive leniency. Having a program in place — even an imperfect one — is far better than having nothing.

What Should Conveyancers Do Now?

Step 1: Generate your risk assessment and AML/CTF program. You can do this for free with AMLTranche — no credit card required. It takes about 15 minutes and produces a tailored program PDF.

Step 2: Review the AUSTRAC starter kit and the Before You Start guidance for additional guidance specific to your sector.

Step 3: Set up your CDD workflows and ensure you can handle CDD on both parties efficiently. Test your process with a sample transaction before July.

Disclaimer: This article provides general information about AML/CTF Tranche 2 obligations for conveyancers and does not constitute legal advice. You should confirm your specific obligations with AUSTRAC or a qualified legal adviser. AMLTranche helps streamline your compliance workflows alongside your professional advisers.