New AML Checks for Property and Business Transactions: What You Need to Know from 1 July 2026




 

If you're buying or selling property, purchasing or selling a business, or entering certain commercial transactions in Queensland after 1 July 2026, you'll notice changes in how your solicitor, conveyancer and other legal professionals manage your matter.

Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms are expanding to cover a broader range of legal and professional services, with new identity verification and customer due diligence requirements.

For most clients, these changes simply mean providing a little more information before the transaction proceeds.

Do the new AML laws affect me?

Yes, although the new obligations primarily apply to the professionals managing your transaction.

From 1 July 2026, solicitors, conveyancers, real estate agents and other professionals providing designated services must verify their clients' identities and undertake customer due diligence before acting.

This means you may be asked to provide:

  • Government-issued photo identification
  • Proof of your residential address
  • Information about the source of your funds
  • Additional documentation where companies, trusts or other entities are involved

These requirements form part of the legal obligations placed on professionals under the new legislation and will become standard in many property and commercial transactions throughout Australia.

Why are these changes being introduced?

The reforms are designed to strengthen Australia's ability to detect and prevent money laundering, terrorism financing and other serious financial crimes.

Transactions involving property, businesses and other valuable assets can be used to conceal criminal proceeds through complex ownership structures. The new legislation helps improve transparency and strengthens Australia's financial system.

The legislation, commonly known as the Tranche 2 reforms, extends Australia's AML/CTF regime to a broader range of legal and professional services. This includes solicitors, conveyancers, real estate agents, accountants and other professionals involved in designated transactions.

For clients, these requirements may apply not only when buying or selling residential property, but also during business sales and purchases, commercial property transactions, and many other commercial and transactional agreements, in which legal professionals must undertake customer due diligence before providing designated services. What information will I need to provide?

For most transactions, the process is straightforward.

You should expect to provide:

Proof of identity

A current passport or driver's licence to confirm your identity.

Proof of address

A recent utility bill, bank statement or similar document confirming your residential address.

Source of funds

You may be asked how you are funding the transaction, for example:

  • Personal savings
  • Sale proceeds from another property or business
  • An inheritance
  • A family gift
  • Business income
  • Finance obtained through a lender

This is a standard compliance requirement and does not indicate any concern about your transaction.

Ownership information

If you are purchasing or selling through a company, family trust or self-managed super fund, additional information may be required to identify the individuals who ultimately own or control that entity.

Why am I being asked these questions?

These checks apply broadly across many transactions.

They are not based on suspicion or individual circumstances. Instead, they form part of Australia's broader framework to reduce financial crime and improve transparency across property and commercial transactions.

Whether you are a first-home buyer, property investor, business owner, commercial purchaser or seller, the same verification requirements generally apply when designated services are provided. Lay my transaction?

Not if you're prepared.

The best way to avoid delays is to provide the requested information as early as possible.

Having your identification documents ready and responding promptly to requests from your solicitor or conveyancer will help keep your matter progressing efficiently.

Where more complex ownership structures are involved, such as companies, trusts or self-managed super funds, gathering the required documentation early is particularly important.

What happens if unusual circumstances arise?

If a legal professional has reasonable suspicion that a transaction may involve money laundering, terrorism financing, or other serious criminal activity, they are legally required to report the matter to AUSTRAC.

Importantly, the law prevents them from informing the client that a report has been made.

For the overwhelming majority of clients, this process will never become relevant, and the additional checks will simply form part of the normal legal process.

Important dates

December 2024

The Tranche 2 reforms became law.

31 March 2026

AUSTRAC opened enrolments for newly regulated businesses.

1 July 2026

AML/CTF obligations commence for newly regulated professions.

29 July 2026

Deadline for newly regulated businesses to complete AUSTRAC enrolment.

Preparing for your transaction

If you're buying or selling property, purchasing or selling a business, or entering into another significant commercial transaction after 1 July 2026, we recommend:

  • Having your passport or driver's licence readily available
  • Being prepared to explain the source of your funds
  • Gathering company or trust documentation early, if applicable
  • Responding promptly to requests for information from your legal representative

Taking these simple steps can help minimise delays and keep your matter progressing efficiently.

How QC Law can help

At QC Law, we understand that every legal transaction is different, whether you're purchasing your first home, selling an investment property, buying or selling a business, or entering into a commercial agreement.

Our experienced team provides practical legal advice across property law, conveyancing, business sales and purchases, commercial law and transactional matters, with transparent fixed fees and clear communication throughout every stage of the process.

While AML/CTF compliance requirements are becoming part of many legal transactions, our role is to guide you through the legal process, explain what information is required and help keep your matter moving efficiently.

Whether you're purchasing property, selling a business or completing another commercial transaction, QC Law is here to help.

Call our team on 07 5657 1928 or email epost@qclaw.com.au to get started.