Australia’s Tranche 2 Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws bring conveyancers into the regulated fold starting 1 July 2026. South Australian
conveyancing clients will now have enhanced identity and wealth-verification checks as your conveyancer steps into their new role as a financial “gate keeper”; to protect the property market.
Australia’s property market has long been a target for organised crime looking to hide or “clean” illicit wealth. To combat this, the Australian Government passed historic Tranche 2 reforms, which broaden the AML/CTF net to include previously unregulated “gate keeper” professions such as conveyancers, real estate agents, lawyers, and accountants.
From 1 July 2026, when you buy, sell, or transfer real estate in SA, your conveyancer will be legally required to follow strict compliance rules regulated by AUSTRAC.
How Do the New Laws Affect You as a Client?
Because your conveyancer is now classified as a “reporting entity” they are legally obligated to know exactly who they are dealing with before any transaction can proceed. Here is what you should expect during your next property transaction:
More Rigorous ID Checks (KYC):
You will be asked to provide more comprehensive documents to prove your identity. Your conveyancer must also identify the “beneficial owners” behind any companies, trusts, or complex ownership
structures.
Proof of Wealth and Funds:
It is no longer enough to simply transfer funds. Your conveyancer may need to ask questions about the source of your wealth and the origin of the funds being used for the deposit and settlement.
Ongoing Monitoring:
Conveyancers aren’t just required to check you once at the start; they must maintain ongoing due diligence throughout your professional relationship to ensure everything remains above board.
No “Tipping Off”:
If your conveyancer spots a red flag, they are required by law to file a Suspicious Matter Report with AUSTRAC. By law, they are strictly forbidden from telling you if such a report has been made.
Why the Change is a Good Thing
While dealing with extra paperwork might feel like an added hassle, these regulations are designed to safeguard the integrity of the real estate market. By keeping illicit funds out of housing, the laws help reduce artificial price distortions, ultimately leveling the playing field for genuine, everyday home buyers.
What You Should Do
If you are planning to buy or sell property in South Australia, expect the onboarding process with your conveyancer to take a bit longer than it used to and to be completed earlier. To ensure your settlement stays on schedule, be prepared to provide requested documents (like passports, driver’s licenses, or financial records) promptly and completely.
For more detailed, official information on how these rules protect consumers and
businesses, visit the AUSTRAC Newly Regulated Businesses Guide and speak with us!