Buying or selling property is one of the biggest financial transactions most people will undertake. As part of the conveyancing process, clients may now be required to complete Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) checks.
For some buyers and sellers, being asked to provide identification documents or information about the source of funds may feel unfamiliar or unexpected.
However, these checks are an important part of modern property transactions and are designed to help protect the integrity of the Australian property market.
This article explains what AML checks are, why they are required, what information may be requested, and how completing the process early can help avoid delays during your property transaction.
What Is AML in Conveyancing?
AML stands for Anti-Money Laundering.
AML/CTF requirements are designed to help identify and prevent illegal activities involving money, including the use of property transactions to conceal the source of funds.
As property transactions involve significant amounts of money, conveyancers and other property professionals may need to complete certain checks before acting for clients.
These checks help confirm:
- Who the client is
- Whether the person is authorised to act in the transaction
- Where funds involved in the transaction may come from
- Whether there are any concerns requiring further review
Why Do Conveyancers Need to Conduct AML Checks?
AML checks are now an important part of the conveyancing process.
A conveyancer needs to know who they are acting for and ensure they meet their legal obligations before providing services.
Completing AML checks helps:
- Protect clients from identity fraud
- Reduce the risk of property-related financial crime
- Ensure transactions are handled appropriately
- Meet regulatory obligations
AML checks are not an indication that there is a problem with your transaction. They are a standard process that applies to many legitimate property buyers and sellers.
When Will I Need to Complete an AML Check?
Generally, AML checks should be completed early in the conveyancing process.
You may be asked to complete an AML check when:
- Buying a property
- Selling a property
- Transferring property ownership
- Acting on behalf of another person or entity
- There are circumstances requiring additional verification
Completing the process early allows your conveyancer to progress your matter without unnecessary delays.
What Information Is Required for AML Checks?
The information required may vary depending on your circumstances.
You may be asked to provide:
- Proof of identity documents
- Personal details
- Information about your role in the transaction
- Information about the source of funds
- Supporting documents where required
The purpose is to verify your identity and understand the transaction.
Why Am I Being Asked for Source of Funds Information?
One question clients often ask is:
“Why do I need to explain where my money is coming from?”
Source of funds information helps provide an understanding of how the money being used in the transaction has been obtained.
Depending on your circumstances, you may need to provide information relating to:
- Personal savings
- Sale proceeds from another property
- Mortgage funds
- Family gifts
- Inheritance
- Business income
- Other legitimate sources of funds
Being asked for this information does not mean there is anything wrong with your transaction. It is part of the verification process.
Why Might I Need to Provide a Bank Statement?
In some circumstances, additional documents may be requested to verify the source of funds.
For example, a client may be asked to provide evidence showing where purchase funds are coming from.
A bank statement may help demonstrate:
- Available funds
- Savings history
- Transfer of funds
- The relationship between the client and the funds being used
The documents required will depend on the individual circumstances of the transaction.
Does AML Apply to Every Property Transaction?
AML requirements may apply differently depending on the circumstances of each matter.
Factors that may affect the checks required include:
- The type of transaction
- The parties involved
- The value of the transaction
- The source of funds
- Any unusual or higher-risk circumstances
Your conveyancer will advise you if further information is required.
What Happens If I Do Not Complete My AML Check?
Completing AML requirements promptly is important.
If required information is not provided, it may affect your conveyancer’s ability to proceed with the transaction.
Delays in completing AML checks may result in delays with:
- Contract preparation
- Settlement preparation
- Communication with other parties
- Meeting transaction deadlines
For this reason, it is best to complete your AML requirements as soon as possible.
Is My Personal Information Safe?
Clients are often understandably concerned about providing personal information.
Professional conveyancers must handle client information carefully and use appropriate processes to protect personal information.
If you have questions about what information is required or why it is being requested, you should ask your conveyancer.
How Can Buyers and Sellers Prepare for AML Checks?
To make the process smoother:
- Complete identification checks early
- Provide accurate information
- Keep supporting documents available
- Respond promptly to requests
- Ask questions if you are unsure why information is required
Being prepared can help your property transaction progress more efficiently.
Common AML Questions in Conveyancing
Why does my conveyancer need my identification?
Identification helps verify who the conveyancer is acting for and forms part of the AML compliance process.
Does AML mean my transaction is suspicious?
No. AML checks are a standard compliance requirement and do not mean there is a concern about your transaction.
Why do conveyancers ask about my source of funds?
Source of funds information helps understand where the money used in the transaction comes from and ensures compliance with AML obligations.
Do first home buyers need AML checks?
Yes, first home buyers may also be required to complete AML checks as part of the conveyancing process.
Can AML checks delay settlement?
If information is not provided promptly, delays may occur. Completing AML requirements early helps avoid unnecessary issues.
How long does an AML check take?
The timeframe depends on whether all required information and documents are provided correctly. Completing the process early can help avoid delays.
How Prox Conveyancing Can Help
At Prox Conveyancing, we understand that AML requirements may be unfamiliar for many buyers and sellers.
We guide our clients through the process by explaining what information is required and why it forms part of the conveyancing process.
Our aim is to make every stage of your Victorian property transaction as clear and straightforward as possible.
About the Author
Meet Sally
Sally Kwok is a Licensed Conveyancer and the Director of Prox Conveyancing. With more than 16 years of experience in the conveyancing industry, she is committed to helping buyers and sellers navigate Victorian property transactions with confidence. Sally is passionate about providing clear communication, practical guidance and personalised service throughout every stage of the conveyancing process.
👉 Learn more about Sally on our About page.
About Prox Conveyancing
Prox Conveyancing is a Victorian conveyancing practice providing professional conveyancing services for residential property transactions across Victoria. We assist buyers, sellers, investors and families with a wide range of conveyancing matters, delivering personalised service, transparent communication and professional support from contract through to settlement.
👉 Learn more about Prox Conveyancing on our About page.
This article provides general information only and is not legal advice. Every property transaction is unique, and the information above may not apply to your particular circumstances. If you require advice about your specific situation, please contact a qualified legal professional or licensed conveyancer.