Conveyancers

This guide covers the AML/CTF obligations specific to non-lawyer conveyancers under AUSTRAC Tranche 2. Read this alongside the general AML/CTF guide for the shared compliance framework.

Important: Lawyer or conveyancer?

AUSTRAC treats lawyer-conveyancers and non-lawyer conveyancers differently. This distinction determines which compliance framework applies to your practice:

• If you or any member of your practice holds a current legal practising certificate, you must use the Legal Profession guide instead — even if your practice only provides conveyancing services
• This guide is for conveyancing practitioners who do not hold legal practising certificates

During Verifia onboarding, the system asks this question and routes you to the correct framework automatically. This routing affects which risk factors, designated services, and compliance features are enabled.

Why conveyancers are regulated

Conveyancing is regulated because property transactions are a significant ML/TF channel:

• Property is commonly used for money laundering — it stores and appreciates in value, making it attractive for integrating illicit wealth
• Large sums change hands — property settlements involve substantial amounts, providing opportunities to move illicit funds
• Conveyancers are gatekeepers — you play a key role in ensuring property transfers are legitimate and properly documented
• Settlement processes can be exploited — last-minute changes to settlement instructions, unexpected fund sources, or unusual arrangements may indicate ML/TF

Your designated services

Your AML/CTF obligations are triggered when you provide these services:

Primary: Real estate conveyancing

• Assisting in the planning or execution of buying, selling, or transferring real estate
• This covers the full conveyancing process: contract preparation and review, searches, settlement coordination, title transfer, and post-settlement lodgement

Secondary: Related transaction services

• Assisting in transactions involving body corporates (e.g., strata title transfers)
• Assisting in transactions involving legal arrangements (e.g., property held in trust)

What is NOT a designated service

• Providing general property advice without involvement in a transaction
• Providing referrals to other professionals
• Administrative work unrelated to the buying, selling, or transferring of real estate

Who is your customer?

Your customer is the person or entity that engages you to provide conveyancing services — typically the buyer or seller of a property.

Unlike real estate agents (who must perform CDD on both the buyer and the seller when brokering a sale), conveyancers typically act for one party in a transaction. Your CDD obligation is to your own client.

However, if you are engaged by both parties in the same transaction (uncommon but possible), you would need to perform CDD on both.

Risk factors specific to conveyancers

Verifia pre-loads industry-specific risk factors based on AUSTRAC guidance and common ML/TF typologies in property conveyancing.

High-risk indicators

Medium-risk indicators

Suspicious behaviour to watch for

• Client is unconcerned about the property price or pays significantly above market value
• Settlement funds come from multiple unrelated sources or unexpected countries
• Client wants to complete the transaction unusually quickly without normal processes
• Client is reluctant to provide identity documents or explain the source of settlement funds
• Client asks you to hold funds in your trust account without a clear purpose related to the conveyancing matter
• Property is purchased through a newly formed company with no trading history or apparent business activity
• Client changes settlement instructions at the last minute, especially changing the entity or account receiving funds
• Client is overly interested in anonymity or asks how to keep their name off property records
• Funds arrive from a jurisdiction with no connection to the client, property, or transaction
• Client has a sense of urgency that seems disproportionate to the transaction

Example scenarios

Scenario 1: Standard residential purchase

You are engaged by a buyer to handle the conveyancing for a $650,000 house purchase funded by a bank mortgage.

1. CDD: Standard CDD — verify the buyer's identity, assess risk.
2. Risk assessment: Low risk — standard residential purchase, bank-funded, local individual buyer.
3. Designated service: Conveyancing. Proceed with the matter.
4. Settlement: Funds come from the bank (mortgage) and the buyer's deposit (electronic transfer). No physical currency involved.
5. Records: Archive all conveyancing documents and CDD records in the compliance vault.

Scenario 2: Commercial property with overseas corporate buyer

An overseas company wants to purchase a $2.8M commercial property. Settlement funds are coming from a bank account in a FATF-identified high-risk jurisdiction.

1. CDD: Enhanced CDD triggered — overseas entity, high-value property, funds from a high-risk jurisdiction.
2. UBO analysis: Use Verifia to identify the natural persons who ultimately own and control the overseas company. Trace through all entity layers.
3. ECDD requirements: Source of funds verification (why are funds held in that jurisdiction? What is the commercial connection?), source of wealth for UBOs, adverse media screening, senior manager approval.
4. Assessment: Is there a legitimate reason for funds originating in that jurisdiction? Is the commercial purpose of the purchase clear and plausible?
5. Decision: If satisfied — proceed with enhanced monitoring. If not — refuse the service and consider filing an SMR.

Scenario 3: Cash-heavy settlement

Your client (the seller) receives $80,000 in physical currency as part of the settlement for a residential property.

1. TTR trigger: $10,000+ in physical currency — file a Threshold Transaction Report within 10 business days.
2. Risk escalation: $80,000 in cash triggers the high-risk physical currency indicator. Reassess the client's risk level.
3. Source of funds: Seek to understand where the cash component is coming from (this would typically be through the buyer's conveyancer or agent).
4. SMR consideration: Is there a reasonable explanation for this much cash in a property settlement? If you form a suspicion, file an SMR. Note: filing a TTR does not replace the SMR obligation if a suspicion is formed.
5. Document everything: Record the cash amount, any explanations received, and your assessment in Verifia.

Scenario 4: Body corporate transaction

You are assisting a client with purchasing a unit in a strata scheme (body corporate arrangement).

1. CDD: Standard CDD on your client. Assess risk based on the client's profile and the transaction.
2. Designated service: Assisting with a body corporate transaction — this triggers your AML/CTF obligations.
3. Proceed: Complete the conveyancing with normal CDD and monitoring in place.
4. Records: Archive body corporate documents, strata information, and CDD records in the compliance vault.

Daily workflow for conveyancers

1. New engagement: When a client engages you, create the customer in Verifia and begin CDD immediately
2. Record the service: Select the designated service type (conveyancing, body corporate, trust-related transaction)
3. Pre-settlement: Complete CDD before settlement — verify identity, assess risk, address any alerts
4. Settlement: Record the transaction; monitor for threshold or suspicious activity triggers
5. Archiving: All documents are automatically archived to the compliance vault with 7-year retention

Key Verifia features for conveyancers