Introduction
If you have bought or sold real estate you would have been asked to verify your identity by showing your passport and drivers licence to your lawyer or conveayncer. This can be done in person or online.
From 1 July 2026 lawyer and conveyancers must comply with the Anti money laundering (AML) laws.
For many clients, this will mean additional identity checks, more questions about the source of funds, and increased compliance requirements during the purchase or sale of property
At Oakhill Lawyers in Carlton, we help clients navigate these requirements. Here’s what you need to know.
What Are Anti-Money Laundering Laws?
Anti-money laundering (AML) laws are regulations designed to prevent money from illegal activities (like drug trafficking, terrorism, corruption, and fraud) from being processed through legitimate transactions like property sales.
Property is a common target for money laundering because:
– Large sums of money are involved
– Property transactions are routine and expected to involve significant money transfers
– Property can be used to hide or “legitimise” illegally obtained funds
To prevent this, Australian law requires lawyers and conveyancers to:
– Verify the identity of clients
– Understand who the actual beneficial owners are
– Ensure money for the transaction comes from legitimate sources
– Report suspicious transactions to the authorities (AUSTRAC)
How Will the New AML Requirements Affect My Property Sale or Purchase (1 July 2026 Onwards)?
From 1 July 2026, clients involved in property transactions should expect lawyers and conveyancers to carry out more extensive due diligence before proceeding with a matter.
This may include:
- verifying identity documents;
- obtaining information about beneficial ownership structures – you must provide your trust deed and information about the beneficiaries;
- asking for evidence of the source of funds or source of wealth;
- conducting risk assessments on transactions;
- screening clients against sanctions and politically exposed person (PEP) databases; and
- ongoing monitoring during the course of a transaction. (NeuraCall)
For many clients, the process may feel similar to opening a bank account or applying for finance.
Clients should be prepared to provide documents and information such as:
- passport or driver licence identification;
- proof of residential address;
- company and trust documentation;
- details of directors, shareholders and beneficiaries;
- loan approval documents;
- bank statements showing accumulation of funds;
- evidence of inheritance, gifts or business proceeds; and
- explanations for large cash movements or international transfers.
Will This Delay Property Settlements?
Potentially, particularly during the early stages of implementation.
Transactions involving trusts, companies, overseas purchasers, family loan arrangements or complex funding structures may require additional verification and review. Clients who provide documents promptly are likely to experience fewer delays.
For this reason, buyers and sellers should engage their legal representatives early and be prepared for additional compliance steps before exchange or settlement.
How Oakhill Lawyers Handles AML Compliance
At Oakhill Lawyers, we handle AML requirements professionally and efficiently:
- We explain what we need, upfront. No surprises. We tell you exactly what documents are required.
- We verify documents carefully. We check originals or certified copies to ensure authenticity.
- We keep things moving. We process your AML verification quickly so your transaction isn’t delayed.
- We’re discreet. We understand these questions can feel intrusive. We ask only what’s legally required and treat your information confidentially.
Questions About Your Specific Situation?
AML requirements vary based on your circumstances. If you’re unsure what you’ll need for your transaction, contact Oakhill Lawyers.
Call Clare: 0421 656 662
Email: clare@oakhilllawyers.com.au
We can:
– Tell you exactly what documents you need
– Advise on timing
– Help if your situation is complex
– Ensure your transaction complies with all AML requirements
The Bottom Line
Anti-money laundering requirements might feel like extra red tape, but they’re:
– Legally required
– Important for preventing financial crime
– Usually straightforward if you plan ahead
– Much faster if you have documents ready
By understanding these requirements early, you can ensure your property transaction proceeds smoothly without unexpected delays.
About Oakhill Lawyers
Based in Carlton, Oakhill Lawyers specialises in property conveyancing throughout Melbourne. We’re committed to compliance, transparency, and making complex requirements understandable.
