You have found your property, ready to go, and then your conveyancer asks for your passport, proof of where your money is coming from, and a few other things you were not expecting.
You are not being investigated, you have not done anything wrong, and no, your conveyancer does not think you are a criminal.
What is happening is that Australia’s laws have changed, and from 1 July 2026, every law firm, conveyancing practice, accountant and real estate professional in the country has new legal obligations they must follow, for every client, every transaction, no exceptions.
Here is what it all means in plain English.
⚠️ General information only. If you have specific questions about how these changes affect your matter, contact Milana Law directly, we are happy to walk you through it.
What Are These New Laws?
They are called the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms.
Australia has had AML/CTF laws for years, but until now, they mainly applied to banks, financial institutions and casinos. Professional service providers like lawyers, conveyancers and accountants were largely outside the regime.
That changes from 1 July 2026.
From that date, a wide range of professional services, including conveyancing and property law, become subject to the same kind of compliance obligations that banks have operated under for years.
Why now? Australia has been identified internationally as having a gap in its financial crime prevention framework. Property transactions in particular have been flagged as a pathway used by criminals to move and legitimise illegal money, these reforms are to close that gap.
Why Does This Exist? What Problem Is It Solving?
Money laundering sounds like something from a crime thriller, but in reality it happens through ordinary-looking transactions, including property purchases.
Here is a simplified version of how it works:
- A criminal acquires money through illegal activity, drug trafficking, fraud, tax evasion or organised crime.
- They need to make that money look legitimate.
- Property is attractive because it is a high-value asset, transactions are complex, and the paper trail can be difficult to follow.
- They use a professional service, a lawyer, a conveyancer, to facilitate the purchase, often without the professional knowing the source of the funds.
The new laws require professionals to take steps to identify who their clients are, understand where their money is coming from, and report anything that looks suspicious to AUSTRAC: the Australian Transaction Reports and Analysis Centre.
In Plain English: The government wants to make sure that property transactions in Australia cannot be used as a vehicle to clean dirty money. Lawyers and conveyancers are now part of that system of checks.
What Does This Mean for You as a Client?
When you engage Milana Law for a property transaction from 1 July 2026, you may be asked to provide some additional information and documents that you have not needed to provide before.
This could include:
| What You Might Be Asked For | Why | |
|---|---|---|
| 🪪 | Photo ID: passport, driver’s licence | To verify you are who you say you are |
| 🏦 | Source of funds information | To confirm where the money for the purchase is coming from |
| 🏢 | Company or trust documents | If you are buying in a corporate or trust structure |
| 📋 | Details about the nature of the transaction | To help assess whether the transaction presents any risk |
| 🔄 | Ongoing information during the matter | In some cases, due diligence is ongoing throughout the transaction |
✅ This is not personal, these checks apply to every client, every transaction, it is not a reflection on you or your circumstances, it is simply a legal requirement that applies across the board.
Which Transactions Does This Cover?
The new obligations apply when Milana Law is providing what are called “designated services”, which for a property law and conveyancing practice includes:
✅ Buying or selling residential or commercial property
✅ Establishing companies or trusts
✅ Managing or holding client funds
✅ Conducting settlement and property transfers
✅ Other property-related legal services
In short, if you are buying or selling property through Milana Law, these obligations apply to your transaction.
What Is AUSTRAC and Why Might We Have to Report to Them?
AUSTRAC stands for the Australian Transaction Reports and Analysis Centre. It is the Australian government agency responsible for detecting and preventing financial crime.
Under the new laws, law firms and conveyancers may be required to report certain information to AUSTRAC, including:
- Suspicious matter reports: if a transaction raises concerns that cannot be resolved through due diligence
- Threshold transaction reports: for certain cash transactions above specified amounts
💡 Important: If Milana Law is ever required to make a report to AUSTRAC, we are legally prohibited from telling you that a report has been made. This is called “tipping off” and is a criminal offence under the legislation. It is not something we choose, it is something the law requires.
What Happens If We Cannot Complete the Required Checks?
This is the part that clients sometimes find surprising.
If we are unable to verify your identity, confirm the source of funds, or complete the required due diligence, we may be legally required to:
- Decline to act for you on the matter
- Cease acting on the matter if it has already commenced
- In some circumstances, make a report to AUSTRAC
This is not something we want to do, and in practice, the vast majority of clients will have no difficulty providing the information required, but the legal obligation is real, and we cannot override it.
The Simple Fix: Respond to our requests for information promptly and completely. The checks are straightforward for the overwhelming majority of property transactions. The more cooperative and transparent clients are, the smoother and faster the process will be.
The Connection to Property Transactions: Why Real Estate?
Property has long been identified as one of the most significant vehicles for money laundering in Australia. Here is why:
- Property transactions involve large sums of money
- They are complex, multiple parties, intermediaries, legal structures
- Property holds and often increases in value, making it an attractive long-term vehicle for concealing illegitimate wealth
- Offshore buyers and complex ownership structures can make beneficial ownership difficult to trace
The new laws specifically target this vulnerability, by requiring conveyancers and property lawyers to conduct identity checks and source of funds verification, the government is making it significantly harder for criminal funds to enter the property market undetected.
For legitimate buyers and sellers, which is the overwhelming majority, this simply means providing some additional documentation. The inconvenience is minor. The benefit to Australia’s financial system is significant.
Frequently Asked Questions
Q: Does this mean Milana Law thinks I am a criminal?
Absolutely not, these checks apply to every client regardless of who they are or how long we have known them. It is a blanket legal requirement, not a judgment about any individual client.
Q: I have been a client for years, do I still need to do this?
Yes, the obligations apply from 1 July 2026 regardless of the history of the relationship. Existing clients will be asked to provide verification information on new matters from that date.
Q: What if I do not want to provide my ID or source of funds information?
Unfortunately, if we cannot complete the required checks, we may be legally unable to act for you on the matter. We understand this can be frustrating, but the obligation is not discretionary.
Q: Is my information kept private?
Yes, any information you provide for AML/CTF compliance purposes is held securely and in accordance with our privacy obligations. It is used only for compliance purposes, not shared with third parties except where we are legally required to report to AUSTRAC.
Q: Will this slow down my settlement?
Not if we get the information we need early. We will request any required documentation as early as possible in the matter so it does not become a last-minute issue. The key is to respond promptly when we ask.
Q: What is the source of funds and why do you need it?
Source of funds means where the money for the purchase is actually coming from, savings, sale of another property, a gift, an inheritance, a loan. This is one of the key pieces of information required under the new regime. For most clients it is a straightforward question with a straightforward answer.
Q: Does this apply to both buyers and sellers?
Yes, the obligations apply to both parties in a property transaction where Milana Law is acting.
What Milana Law Is Doing to Make This Easy
We understand that additional paperwork is never exciting, we are committed to making the compliance process as straightforward and efficient as possible for our clients.
Here is what you can expect from us:
✅ We will tell you clearly and early exactly what we need from you
✅ We will explain why each piece of information is required
✅ We will make the process as streamlined as possible
✅ We will answer any questions you have about the requirements
✅ We will hold your information securely and use it only for its intended purpose
These reforms are not something we chose, but they reflect values we already hold. Milana Law has always been committed to the highest standards of professional integrity, client protection and legal compliance. The new AML/CTF framework aligns with that commitment.
The Bottom Line
From 1 July 2026, anti-money laundering laws in Australia extend to lawyers, conveyancers and other professional service providers for the first time.
For clients of Milana Law, this means:
- You may be asked for ID, source of funds information and other documents
- These checks apply to everyone, they are not personal
- Providing the information promptly keeps your matter on track
- If you have questions, just ask us
Australia’s property market is one of the most significant financial systems in the country. These laws exist to keep it clean, safe and resistant to criminal exploitation. We are proud to be part of that system.
Have questions about how the new AML/CTF laws affect your matter? Contact Milana Law today, we will explain everything in plain English.
Milana Law | Queensland & NSW Property Law | milanalaw.com.au