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Customer due diligence for Conveyancers — 2026 AUSTRAC Guide

From 1 July 2026, a conveyancing practice that provides a designated service must identify and verify each client before acting. For conveyancers, this matters because property transfers, settlements and related dealings can be used to hide criminal funds or move assets. If you provide a designated service without completing customer due diligence, you risk AUSTRAC enforcement, civil penalties of up to $33.5 million per contravention, and criminal penalties for intentional breaches.

Your AML/CTF obligations

  1. 1. AUSTRAC enrolment
  2. 2. Compliance officer
  3. 3. ML/TF risk assessment
  4. 4. AML/CTF program
  5. 5. Customer due diligence
  6. 6. Sanctions screening
  7. 7. Suspicious matter reporting
  8. 8. Record keeping (7 years)
  9. 9. Staff training

Customer due diligence means you must know exactly who you are acting for before you provide the designated service. For an individual client, you must verify their full name, date of birth and residential address against government-issued identification. For a company, you must verify the company name, ABN or ACN and company type through ASIC, then work out who ultimately owns or controls it. For a trust, you need the trustee details, the trust deed and the beneficial owners. A beneficial owner is the natural person who holds 25% or more, or who exercises effective control.

How a conveyancer should handle CDD in practice

  • At the first instruction, decide whether the matter involves a designated service and do not assume every conveyancing task is the same.
  • Before you start acting, collect the client’s core identity details and copies of the relevant documents.
  • For individuals, check government-issued ID and confirm name, date of birth and address match your file and engagement details.
  • For companies, search ASIC, confirm the entity exists, record its ABN or ACN, and identify the people who own 25% or more or control it.
  • For trusts, review the trust deed, identify the trustee, and trace through to the natural persons who are beneficial owners or control the trust.
  • Before proceeding with the property transaction, screen the client against the DFAT autonomous sanctions list and the UN Security Council consolidated list.

Do this before you exchange or settle

CDD must be completed before you provide the designated service. In a conveyancing matter, leaving identity checks until just before settlement is risky. If ownership is layered through companies or trusts, or a family member claims to be instructing on behalf of the buyer, your file can stall at the worst possible time.

The most common mistake in conveyancing is treating verification of identity used for land titles or mortgagee requirements as if it automatically satisfies AML/CTF obligations. Your AML/CTF checks are separate and are aimed at understanding who the client is, who really controls the client, and whether the matter presents higher risk. Another common error is identifying the person signing the costs agreement but not the actual purchaser, vendor, trustee or corporate controller. You also need enhanced due diligence for higher-risk matters, including politically exposed persons, unusual purchase structures, overseas connections to high-risk countries, or transactions that do not make commercial sense.

Practical file tips for conveyancing matters

  • Build CDD into your opening checklist, not your settlement checklist.
  • Use a client information form that asks whether the buyer or seller is acting personally, through a company, or as trustee.
  • If a company is involved, ask early for the ASIC extract and details of shareholders and controllers.
  • If a trust is involved, ask for the full trust deed and any variation deed, not just the front page.
  • Record who gave instructions, who provided funds, and whether that matches the registered proprietor, purchaser or trustee.
  • Keep copies of IDs, ASIC searches, trust documents and sanctions screening results for 7 years after the relationship ends.

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Frequently asked questions

Do I need to do CDD on both the buyer and the seller?
You must do CDD on your customer before providing the designated service. If you act for the seller, your customer is the seller. If you act for the buyer, your customer is the buyer. If your practice acts for both sides in different matters, each customer must be identified and verified separately.
What if my client is a family trust buying property through a corporate trustee?
You need to identify and verify more than just the person signing. Check the corporate trustee through ASIC, obtain and review the trust deed, identify the trustee details, and work out the natural persons who are beneficial owners or who exercise effective control. In practice, that often means tracing through both the company structure and the trust structure.
Can I rely on a real estate agent or mortgage broker to collect the client's ID for me?
You should not assume another party’s onboarding process covers your obligation. Your practice is responsible for verifying the customer before you provide the designated service. If another party has collected documents, you still need a process that lets you assess whether the information is sufficient for your own AML/CTF file.
What if the client is overseas and cannot attend the office?
The client still has to be identified and verified before you act. Remote onboarding is possible, but you need reliable document collection and checking, and you should consider whether the overseas connection increases risk and calls for enhanced due diligence. Do not lower your standard because the matter is time-sensitive.
Will CDD add much cost and delay to a standard conveyance?
It can, if you leave it too late or if the ownership structure is complex. For straightforward individual clients, the process should be quick if you collect documents at file opening. The bigger cost usually comes from companies, trusts, overseas links, and last-minute attempts to identify beneficial owners before exchange or settlement.

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