Conveyancers still have a week to have their say on latest AML updates

NEW rules around Anti-Money Laundering will allow real estate agents to use the Know Your Customer due diligence work carried out by conveyancers.

That was one of the main outcomes from the latest updates from AUSTRAC, which gave the sector a month to make submissions to the changes.

These included the option for conveyancers to delay Know Your Customer due diligence until just before settlement, rather than at the start of the process.

The measures have already been broadly welcomed by experts and property industry leaders.

The fact that real estate agents and conveyancers will no longer have to double up on obtaining reports has been welcomed by Real Estate Institute of Australia CEO Scott Rollason.

He said the new draft had taken on board the recommendations put forward by the REIA.

Talking about the draft release, he said: “Notably, it includes provisions for delayed customer diligence on buyers and introduces a more practical approach to reliance – allowing real estate agents to rely on conveyancer due diligence in certain circumstances.

“These changes will significantly reduce administrative burdens and AML compliance costs for sellers.”

Grant Thornton risk consulting partner Neal Jeans – an expert who is helping deliver training programs on behalf of regulator AUSTRAC – also saw these changes as a positive.

“Real estate agents and conveyancers will be allowed to delay initial customer due diligence on purchasers—and previously identified vendors—until before settlement, rather than at the start of providing the designated service,” he said in a post on LinkedIn.

“There is now clarity that reliance on KYC information is permitted between real estate agents and conveyancers.

“There’s a lot to digest, but these proposed AML/CTF Rules form a critical part of the compliance jigsaw that both existing and soon-to-be-regulated businesses need to understand.”

When he spoke to Australian Conveyancer earlier this year, he acknowledged conveyancers were already doing most of the work they needed to do.

“It is a burden. It is something that’s new, but my experience is that if you take the time to do the analysis, you are doing the vast majority of the stuff,” he said.

“You’ll probably find you are doing 80 per cent of what you need to do.

“You don’t call it AML at this point, or you don’t point to it as AML.

“You vet your staff before they come in. You do reference checks and things. That’s called employee due diligence.

“So you can see how the things you do in your normal business as a well-run business will translate.”

The final AML/CTF rules are set to be published in August this year, with Industry Specific Guidance and Small Business Starter Kits to follow in December.

The implementation of AML/CTF obligations for conveyancers comes into force on July 1, 2026.

Details of where to submit your comments to AUSTRAC are here