If you’re buying property in Australia—especially in New South Wales—the new AML/CTF reforms (often called “Tranche 2”) are going to change how your transaction is handled. Here’s what actually matters for you as a purchaser:
1. You’ll need to prove who you are (more rigorously)
Your lawyer and the real estate agent will now be required to:
- Verify your identity using reliable, independent documents
- Confirm your beneficial ownership (e.g. if buying via a company or trust)
- Re-check your identity if anything changes
This goes beyond the usual ID checks—you may be asked for additional documentation.
2. You may need to explain your source of funds
Expect questions like:
- Where did your deposit come from?
- Are funds from savings, a gift, business income, or overseas sources?
You might need to provide:
- Bank statements
- Loan documents
- Gift letters
Large or unusual transactions will attract closer scrutiny.
3. Your transaction will be risk-assessed
Your solicitor must assess the money laundering / terrorism financing risk of your purchase.
Higher-risk factors include:
- Complex ownership structures (trusts, companies)
- Overseas buyers or funds
- Cash-heavy transactions
- Urgent or unusual deal structures
If you fall into a higher-risk category, expect more questions and delays.
- Your solicitor must comply with Anti-Money Laundering and Counter-Terrorism Financing Act 2006
Lawyers and conveyancers will become “reporting entities,” meaning they must:
- Collect and verify your information
- Keep records for at least 7 years
- Report suspicious activity to AUSTRAC
5. Expect slower onboarding at the start
Before your solicitor can act for you, they must complete AML checks.
This means:
- You may not be able to sign contracts immediately
- Delays can happen if documents aren’t ready
- Last-minute purchases become harder
Practical tip: Start legal engagement early.
6. Real estate agents may also be involved
Under the reforms, agents are also expected to:
- Identify buyers and sellers
- Conduct basic due diligence
- Share information with your solicitor (via reliance arrangements)
So you might be asked similar questions by multiple parties.
7. Privacy vs compliance
Your personal and financial information will be:
- Collected and stored securely
- Shared only where legally required
But you should expect more transparency obligations on your side than before.
8. Deals can be paused or stopped
If your solicitor or agent is not satisfied:
- They may refuse to act
- They may delay settlement
- The transaction could fall through
This is a legal obligation—not discretion.
What this means in practice
For a typical buyer, the impact is:
- ✔ More paperwork upfront
- ✔ More questions about your finances
- ✔ Slightly slower start to transactions
- ✔ Greater scrutiny for complex or high-value deals
But if your funds and structure are straightforward, it should be manageable.
How to prepare
To avoid delays, have ready:
- Photo ID (passport/driver’s licence)
- Proof of address
- Bank statements (showing deposit funds)
- Loan approval documents
- Trust/company documents (if applicable)
This article was published on 04/05/26 and the information is valid as at the date of publishing. This article is general in nature and is not and should not be considered or relied on as legal advice. Meehans Solicitors is not responsible in the event this information is relied upon by the reader in the absence of specific legal advice.
