AML / CTF Compliance from 1 July 2026

From 1 July 2026, new requirements come into effect, which impact solicitors, conveyancers, real estate agents and accountants.

The requirements relate to Anti-Money Laundering and Counter-Terrorism Financing (AML / CTF). They are administered by the regulator, AUSTRAC (which stands for the Australian Transaction Reports and Analysis Centre).

These requirements have already been in place for several years for banks, other financial institutions, casinos, digital currency exchanges and some others. Those entities are referred to as Tranche 1 entities. Solicitors, conveyancers, real estate agents and accountants are known as Tranche 2 entities.

AUSTRAC has determined that certain activities (such as buying & selling real estate and buying & selling business and companies, amongst others) are designated activities – that is, they are most likely to be targeted by criminals for money laundering, terrorism financing and proliferation financing. As AUSTRAC states:

Financial crime happens in Australia every day and it costs up to $82 billion a year. Much of the money being laundered through our systems is linked to harmful crime like illicit tobacco, environmental destruction, corruption, child exploitation and human trafficking.

In order to tackle the problem, AUSTRAC has introduced the new requirements, which oblige solicitors, conveyancers, real estate agents and accountants to perform more due diligence regarding their clients’ identities. Property law solicitors and conveyancers are already required to complete verification of identity (VOI) for their clients, but the new requirements broaden what must be done. We must ask and obtain more details of our clients through ‘Know Your Customer/Client (Individuals)’ and ‘Know your Business (Companies and Trusts)’ questionnaires, as well as be aware of suspicious activity and report it to AUSTRAC if necessary.

In most ways, although it is a big change for our industry, it will hopefully be business as usual with some added steps for us to comply with, as regard to our clients. Thankfully, there seems to be helpful support networks and systems available (and which continue to develop and improve on an almost daily basis) to enable Tranche 2 entities to continue to do what they do best – provide a professional service to you, our client. The most important person in the room.