Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime is expanding, and property transactions are now a key focus. From 1 July 2026, Tranche 2 reforms will extend these laws to professions involved in property dealings, including lawyers, conveyancers and real estate agents when they work in “designated services” including the buying and selling of real estate but at this stage most likely not leasing real estate for terms less than 30 years.
While proper identification of the client was already necessary for lawyers at least (for example, taking copies of a passport and driver licence to establish identity for electronic conveyancing purposes), these professionals will now be required to carry out further client due diligence as part of everyday property transactions, bringing the process closer to what borrowers already experience with lenders.
Buyers and sellers on the Gold Coast will still be able to transact as usual, but the process
will involve more upfront verification. A conveyancing lawyer will need to inspect more documentation, with closer scrutiny of how funds are sourced and used.
Businesses involved in property transactions should note that the AUSTRAC enrolment window has already opened as of 31 March 2026. It is important to act now ahead of the 1 July 2026 compliance deadline.
Why are property transactions being targeted?
Property has long been identified as a potential channel for money laundering due to the high value of transactions and the ability to structure ownership in different ways.
Extending AML/CTF obligations to property-related services is also part of Australia’s broader effort to align with international standards. The reforms aim to improve transparency across the Australian property market, which directly impacts clients working with property lawyers on the Gold Coast.
On 1 July, 2026 an estimated 80,000 to 90,000 new reporting entities are expected to enter the AML/CTF regime nationally.
What the new laws require
Under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, businesses providing “designated services” must meet a series of compliance obligations. From 1 July 2026, this will include property-related services in Queensland.
The designated services include:
- assisting in the planning or execution of a transaction to sell, buy or transfer real estate (item 1)
- assisting in the planning or execution of a transaction to sell, buy or transfer a body corporate or legal arrangement (item 2)
- receiving, holding, controlling or managing a person’s property to help in the planning or execution of a transaction (item 3)
- assisting in organising, planning, or executing a transaction for equity or debt financing relating to a body corporate or legal arrangement (item 4)
- selling or transferring a shelf company (item 5)
- assisting in the planning or execution of the creation or restructuring a body corporate or legal arrangement (item 6)
- acting, or arranging for someone to act on behalf of a person in particular positions in a body corporate or legal arrangement (items 7–8)
- providing a registered office address or principal place of business address of a body corporate or legal arrangement (item 9).
Customer due diligence
Professionals must verify the identity of clients and understand who they are dealing with.
Additional checks may apply where a transaction is considered higher risk, such as where complex ownership structures are involved. This shifts the role of legal and property professionals from purely transactional to actively assessing risk.
In practice, this will often include VOI requirements, where clients must provide identification documents and, in some cases, complete face-to-face or electronic identity verification processes before work can commence.
Where the client is a company or acts as a trustee, the “owner” of the client has to be identified and their identity verified. This means that the constitution of the company may be examined together with any trust deeds, and the VOI is likely to be required on:
- for companies, anyone with 25% or more of the shares;
- for unit trusts, unitholders;
- for discretionary trusts, primary beneficiaries.
A fairly typical structure would be a company either acting as a trustee for a discretionary trust, or having a shareholder that is a trustee for a discretionary trust. The VOI is likely to require:
- possible review of the constitution;
- review of company search;
- review of trust deed;
- VOI of all individuals who are directors of the company, shareholders of the company, and primary beneficiaries of the trust.
What is VOI and what does it involve?
VOI is a key part of the due diligence process and will become a standard requirement in most property transactions.
VOI can be completed in several ways. In some cases, it is carried out face-to-face, where original identification documents such as a passport or driver licence are sighted and verified. Electronic VOI is also commonly used through secure digital platforms.
Clients may be asked to provide multiple forms of identification. Where there are discrepancies, further verification may be required before the transaction can proceed.
VOI is typically required early in the transaction process. Delays in completing VOI can slow transactions, so having valid and up-to-date identification ready is important for buyers and sellers on the Gold Coast.
Ongoing monitoring and reporting
Transactions must be monitored for unusual or suspicious activity. If concerns arise, professionals are required to submit reports to AUSTRAC, including suspicious matter reports and threshold transaction reports for cash payments of $10,000 or more. The professional is not permitted to inform their client that the report has been made.
This means transactions are not just checked at the start. They are assessed throughout the process.
These reporting obligations are designed to support law enforcement and protect the integrity of the financial system, including transactions overseen by a Gold Coast lawyer.
Record keeping and compliance programs
Businesses must maintain detailed records of transactions and client information, generally for at least seven years. This applies across legal services, including those provided by
commercial lease solicitors and professionals involved in property conveyancing.
How will due diligence obligations apply to lawyers?
Legal professionals will now be required to carry out similar AML/CTF checks when providing designated services. This means lawyers must take active steps to identify their clients, understand the nature of the transaction and assess whether there is a risk of money laundering or other financial crime.
In practice, this may include verifying identity, confirming the source of funds, and understanding the ownership structure behind a purchase.
Lawyers must also monitor transactions for inconsistencies or unusual activity.
How this will affect property transactions in Queensland
The introduction of these laws will not prevent property transactions from proceeding, but it will change how they are managed.
More documentation will be required throughout the process. Evidence showing the source of funds may be requested before a transaction can move forward.
Transactions involving trusts, companies or international funds are likely to require additional review, which can extend the timeline compared to more straightforward purchases.
Legal professionals and agents will take on a more active role in compliance. Disputes that arise in this context may involve a property litigation lawyer or lawyers for litigation.
Property developers may also be captured under the Tranche 2 reforms where they provide designated services connected to property transactions.
Legal professional privilege remains
The reforms include safeguards for legal professional privilege. This is particularly relevant in Queensland property transactions where legal advice forms part of the process. Privileged communications between a client and their lawyer remain protected, including when working with estate lawyers or a civil litigation lawyer.
What this means for Gold Coast buyers and sellers
Property transactions on the Gold Coast will increasingly involve structured compliance steps.
Ensuring identification documents are current and consistent is a practical starting point. Being prepared for VOI checks, including having valid photo identification and matching personal details across documents, can help avoid delays.
Buyers should also be prepared to explain where their funds are coming from, particularly where deposits or purchase funds are not straightforward.
Complex transactions are more likely to attract closer scrutiny. Simpler transactions will generally move through the process more efficiently when supported by property lawyers on the Gold Coast.
Preparing for a more regulated property process
New AML/CTF laws represent a structural change in how property transactions are handled in Queensland.
With the enrollment window already open and the compliance deadline less than three months away, now is the time for property professionals and their clients to understand their obligations and get their documentation in order.
These changes are designed to improve transparency and reduce the risk of criminal activity within the property market. Being prepared with the right documentation and an understanding of the process can help transactions proceed more smoothly on the Gold Coast, particularly when working with a Gold Coast business lawyer.
If you are buying or selling property on the Gold Coast, QBM Lawyers can help you understand how the new AML/CTF requirements apply to your transaction, ensure your documentation meets compliance standards and assist with any legal issues that arise during the process. Contact our team to arrange a confidential discussion about your matter.
Frequently Asked Questions
They are an expansion of Australia’s anti-money laundering laws to include additional industries, including legal, conveyancing and real estate services involved in property transactions.
The reforms apply from 1 July 2026, bringing property-related services within the AML/CTF framework. Enrolment with AUSTRAC opened on 31 March 2026 and affected businesses should already be enrolled or in the process of doing so.
Yes. Identity verification and evidence of the source of funds are likely to be required as part of the transaction process.
Delays can occur if required documentation is not provided or if additional checks are needed, particularly in more complex transactions.
Most transactions involving designated services will be affected, although the level of scrutiny will depend on the risk profile of the transaction.
Property developers may be captured under the Tranche 2 reforms where they provide designated services connected to property transactions and will be required to meet AML/CTF compliance obligations from 1 July 2026.
