Introducing the new AML/CTF legislation
In 2024 The Commonwealth Government introduced legislation to expand the existing Anti Money Laundering and Counter Terrorism Act 2006
Financial crime costs up to $82 Billion AUD per year and the Commonwealth is working to close gaps which criminals have been exploiting such as using illicit funds to buy property. Australia must now comply with international standards, and as a result Real Estate Agents, Accountants, Lawyers and Conveyancers are amongst the newly regulated businesses from July 1st 2026.
how does this new legislation affect Conveyancers?
- conveyancers have had to review and implement new processes and procedures to be ready to implement the new legislation
- conveyancers are required to register with AUSTRAC (Australian Transaction Reports and Analysis)
- conveyancers may choose to engage third party providers to assist with our obligations and compliance
- all staff have been required to undertake training to ensure the processes and procedures are implemented properly
- conveyancers will now need to assess the risk level of the client and the transaction prior to proceeding
how does this new legislation affect our clients and their property and business transactions?
the new legislation will affect new and existing clients alike for new matters commencing after July 1st 2026
conveyancers already collect certain information from our clients which includes identity information. AUSTRAC will also now require Conveyancers to ask for additional information depending on the type of client we are acting for.
the information must be provided to the conveyancers before work can begin on a client’s matters. This includes:
- Verification of Identity (now knows as ‘Know Your Client’ or KYC) which will now need to be completed with more urgency that was previously required.
- purchasing entity – clients should decide as soon as possible their purchasing entity (for example companies, trusts, individuals, SMSFs)
Examples of the questions our clients must answer include;
Q – what services are you requesting and why?
Q – what is your occupation?
Q – what is the source of your funds?
Q – what is the source of your wealth?
Q – what is the intended use of your proceeds of sale?
Q – who are the directors, shareholders and beneficiaries of companies and trusts?
Q – are you a politically exposed person?
these questions may seem intrusive and personal, but they are now required by law. If the questions we ask are not answered it may then not be possible for us to proceed with your matter
At McKay Business Services we always work hard to make sure that your transaction proceeds as smoothly as usual; and we will work collaboratively with all of our clients to ensure this happens.
if you have any questions about the new legislation and how it may affect you please contact us on 08 8333 3525
https://www.austrac.gov.au/about-us/legislation/amlctf-act
