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\n From 1 July 2026, Australia\u2019s AML\/CTF regime will expand to certain legal, conveyancing, real estate and professional services. Property buyers, sellers, developers, business owners, companies and trusts should expect more detailed identity, ownership and source of funds checks.\n <\/p>\n <\/header>\n\n

\n

\n Australia\u2019s anti-money laundering and counter-terrorism financing regime is moving into a new phase. From 1 July 2026, a broader range of professional services will become subject to AML\/CTF obligations when they provide certain designated services.\n <\/p>\n\n

\n For property and commercial clients, this means the transaction process may feel different. Lawyers, conveyancers, real estate professionals and other advisers may need to ask more detailed questions before they can act, proceed with a transaction, or continue providing certain services.\n <\/p>\n\n

\n These changes are not simply internal compliance issues for professional firms. They may directly affect buyers, sellers, developers, business owners, companies, trusts and investors who are involved in Australian property or commercial transactions.\n <\/p>\n <\/section>\n\n

\n

What is changing from 1 July 2026?<\/h2>\n\n

\n The AML\/CTF reforms will extend Australia\u2019s regime to certain services provided by legal professionals, conveyancers, real estate agents, buyer\u2019s agents, accountants, trust and company service providers and other newly regulated entities.\n <\/p>\n\n

\n The key point for clients is that the obligation is linked to designated services. Not every legal or commercial matter will be treated in the same way. However, where a professional service falls within the AML\/CTF framework, the service provider may need to conduct customer due diligence, verify information, assess risk and keep records.\n <\/p>\n\n

\n In practice, this may affect transactions involving:\n <\/p>\n\n

    \n
  • residential property purchases and sales;<\/li>\n
  • commercial property transactions;<\/li>\n
  • off-the-plan acquisitions;<\/li>\n
  • property development transactions;<\/li>\n
  • business purchases and sales;<\/li>\n
  • company, trust or ownership structures;<\/li>\n
  • transactions involving overseas funds;<\/li>\n
  • transactions involving family gifts, private loans or third-party payments;<\/li>\n
  • high-value or unusual transactions; and<\/li>\n
  • matters involving politically exposed persons, sanctions risk or high-risk jurisdictions.<\/li>\n <\/ul>\n <\/section>\n\n
    \n

    Why property clients may be asked more questions<\/h2>\n\n

    \n Property transactions are a major focus of AML\/CTF reform because real estate can be used to move, store or disguise funds. From a client\u2019s perspective, this means identification and verification checks may become more detailed.\n <\/p>\n\n

    \n A buyer or seller may be asked to provide information about who they are, who controls the purchasing entity, who is providing the funds, whether another person is acting on their behalf, and whether the transaction is consistent with the client\u2019s known circumstances.\n <\/p>\n\n

    \n For a simple individual buyer, this may involve identity documents, address details and basic information about the purchase. For a company, trust, foreign buyer or development group, the process may involve more documents and a clearer explanation of ownership and control.\n <\/p>\n <\/section>\n\n

    \n

    Source of funds and source of wealth may become more important<\/h2>\n\n

    \n One of the practical effects of the AML\/CTF reforms is that clients may be asked to explain the source of funds or source of wealth behind a transaction.\n <\/p>\n\n

    \n Source of funds generally refers to where the money for a specific transaction is coming from. For example, this may include savings, sale proceeds, business income, a loan, inheritance, a family gift, company funds or overseas remittance.\n <\/p>\n\n

    \n Source of wealth is broader. It looks at how a person or entity accumulated their overall wealth over time. This may be relevant where a transaction is large, complex, unusual, or involves a higher-risk profile.\n <\/p>\n\n

    \n Clients should expect that verbal explanations may not always be enough. Depending on the risk profile, supporting documents may be required. These may include bank statements, loan documents, sale contracts, gift letters, company records, trust deeds, financial statements or other reliable records.\n <\/p>\n <\/section>\n\n

    \n

    Companies and trusts should prepare earlier<\/h2>\n\n

    \n Companies and trusts are likely to face more detailed onboarding checks than individual clients. This is because advisers may need to identify the entity, understand its ownership and control structure, and verify the authority of the person giving instructions.\n <\/p>\n\n

    \n For a company, this may involve ASIC records, company constitutions, director details, shareholder information and details of beneficial owners.\n <\/p>\n\n

    \n For a trust, this may involve the trust deed, trustee details, appointor details, beneficiary information, amendments to the trust deed and evidence of who has authority to act.\n <\/p>\n\n

    \n Where a structure includes overseas entities, nominee arrangements, layered ownership, private funding or multiple family members, the process may take longer. Clients should allow additional time before exchange, settlement or completion.\n <\/p>\n <\/section>\n\n

    \n

    Business buyers and sellers may also be affected<\/h2>\n\n

    \n AML\/CTF is not limited to residential conveyancing. Commercial transactions may also be affected where the relevant services fall within the designated services framework.\n <\/p>\n\n

    \n A business purchase or sale may involve company shares, business assets, lease assignments, trust structures, finance arrangements, vendor loans, guarantees and related-party payments. These are exactly the kinds of details that may require clearer documentation.\n <\/p>\n\n

    \n Business owners should prepare early by reviewing company records, trust documents, financial records, source of funds information, authority documents and transaction structure before legal documents are finalised.\n <\/p>\n <\/section>\n\n

    \n

    Real estate agents and buyer\u2019s agents are also part of the change<\/h2>\n\n

    \n The reforms do not only affect lawyers and conveyancers. Real estate agents and buyer\u2019s agents may also have AML\/CTF obligations when they provide designated services, such as brokering the purchase, sale or transfer of real estate.\n <\/p>\n\n

    \n This means clients may receive AML\/CTF-related questions from more than one professional in the transaction. A buyer may be asked for information by an agent, conveyancer, lawyer, lender or other adviser.\n <\/p>\n\n

    \n While this may feel repetitive, the underlying purpose is to ensure that each regulated professional can satisfy their own compliance obligations.\n <\/p>\n <\/section>\n\n

    \n

    What documents should clients prepare?<\/h2>\n\n

    \n The documents required will depend on the client, transaction and risk profile. However, clients involved in property or commercial transactions should consider preparing the following:\n <\/p>\n\n

      \n
    • current identity documents;<\/li>\n
    • proof of residential address;<\/li>\n
    • ASIC company extracts;<\/li>\n
    • company constitutions;<\/li>\n
    • trust deeds and amendments;<\/li>\n
    • details of directors, shareholders, trustees, appointors and beneficiaries;<\/li>\n
    • evidence of authority to act on behalf of another person or entity;<\/li>\n
    • bank statements showing available funds;<\/li>\n
    • loan approval or finance documents;<\/li>\n
    • evidence of overseas remittance;<\/li>\n
    • gift letters or family loan documents;<\/li>\n
    • sale contracts showing proceeds from another asset;<\/li>\n
    • business financial records where company funds are used; and<\/li>\n
    • explanations for any third-party payments.<\/li>\n <\/ul>\n <\/section>\n\n
      \n

      Why timing matters<\/h2>\n\n

      \n AML\/CTF checks can affect timing. If information is incomplete, inconsistent or difficult to verify, the adviser may need to ask follow-up questions before progressing the matter.\n <\/p>\n\n

      \n This is particularly important for property transactions with short finance dates, settlement dates or auction conditions. It is also important for commercial transactions where delays may affect finance approval, lease assignment, business handover or completion.\n <\/p>\n\n

      \n Clients should not wait until the last minute to organise documents. A clean document trail can reduce delay and help the transaction proceed more smoothly.\n <\/p>\n <\/section>\n\n

      \n

      Practical examples<\/h2>\n\n

      Example 1: Overseas funds for a property purchase<\/h3>\n

      \n A buyer receives funds from an overseas bank account shortly before settlement. The adviser may ask where the funds came from, who owns the overseas account, whether the funds belong to the buyer, and whether supporting documents are available.\n <\/p>\n\n

      Example 2: Company buying commercial property<\/h3>\n

      \n A company purchases commercial property. The adviser may need to review ASIC records, identify directors and beneficial owners, confirm who has authority to sign, and understand how the company is funding the acquisition.\n <\/p>\n\n

      Example 3: Family gift used for deposit<\/h3>\n

      \n A buyer uses a family gift for the deposit. The adviser may ask for a gift letter, evidence of the transfer, and information about whether the money is genuinely a gift or a loan.\n <\/p>\n\n

      Example 4: Trust involved in a business acquisition<\/h3>\n

      \n A trust purchases a business. The adviser may need to review the trust deed, identify the trustee and relevant controlling persons, confirm authority, and understand the source of acquisition funds.\n <\/p>\n <\/section>\n\n

      \n

      What clients should do now<\/h2>\n\n

      \n Clients planning to buy or sell property, acquire a business, restructure ownership or use a company or trust should prepare early. The better the document trail, the easier it will be to respond to AML\/CTF questions.\n <\/p>\n\n

      \n Before starting a transaction, clients should consider:\n <\/p>\n\n

        \n
      • whether the buyer or seller is an individual, company, trust or foreign entity;<\/li>\n
      • who ultimately owns or controls the entity;<\/li>\n
      • where the transaction funds will come from;<\/li>\n
      • whether any funds will come from overseas;<\/li>\n
      • whether any third party will contribute funds;<\/li>\n
      • whether the transaction involves unusual timing, structure or complexity;<\/li>\n
      • whether company or trust documents are complete and current; and<\/li>\n
      • whether the transaction should be reviewed before signing.<\/li>\n <\/ul>\n <\/section>\n\n
        \n

        How Ensure Legal can assist<\/h2>\n\n

        \n Ensure Legal assists clients with Queensland property transactions, commercial property matters, business purchases and sales, leasing, conveyancing, FIRB-related matters and contract review.\n <\/p>\n\n

        \n For property and commercial clients, early legal review can help identify whether a transaction structure, ownership arrangement, funding source or document issue may require further attention before signing, exchange or settlement.\n <\/p>\n\n

        \n If you are planning a property or commercial transaction in Queensland, it is prudent to prepare your documents early and obtain legal advice before committing to the transaction.\n <\/p>\n <\/section>\n\n

        \n

        Key takeaway<\/h2>\n\n

        \n From 1 July 2026, AML\/CTF compliance will become a more visible part of many property and commercial transactions. Clients should expect more detailed questions about identity, ownership, authority, source of funds and transaction purpose.\n <\/p>\n\n

        \n The change is not just a regulatory issue for professional firms. It is a practical transaction issue for clients. Clear documents, early preparation and proper legal review will become increasingly important.\n <\/p>\n <\/section>\n\n

        \n

        Frequently Asked Questions<\/h2>\n\n

        Do the AML\/CTF reforms apply to every legal matter?<\/h3>\n

        \n No. The obligations are linked to designated services. However, many property, conveyancing, commercial and entity-related services may require closer review depending on the facts.\n <\/p>\n\n

        Will property buyers need to provide more documents?<\/h3>\n

        \n In many cases, yes. Buyers may be asked for identity documents, ownership details, authority documents and information about the source of funds used for the transaction.\n <\/p>\n\n

        Will companies and trusts face more checks?<\/h3>\n

        \n Companies and trusts may need to provide additional documents because advisers may need to understand ownership, control, beneficial ownership and authority to act.\n <\/p>\n\n

        What is source of funds?<\/h3>\n

        \n Source of funds refers to where the money for a specific transaction comes from. This may include savings, loan funds, sale proceeds, business income, inheritance, family gifts or overseas remittance.\n <\/p>\n\n

        What is source of wealth?<\/h3>\n

        \n Source of wealth refers to how a client accumulated their overall wealth over time. It may become relevant where a transaction is large, complex, unusual or higher risk.\n <\/p>\n\n

        Should clients prepare before 1 July 2026?<\/h3>\n

        \n Yes. Clients planning property or commercial transactions should prepare identity documents, company records, trust documents, funding evidence and authority documents early.\n <\/p>\n <\/section>\n\n