Anti-Money Laundering Laws: What The July 2026 Changes Mean When You Buy Property Or A Business

From 1 July 2026, Australia's anti-money laundering laws introduced new obligations for solicitors handling certain property and business transactions. If you're buying or selling property or a business in NSW, your solicitor must now complete additional identity and due diligence checks before providing designated services.

These changes affect how solicitors manage transactions and may require clients to provide more information earlier in the process.

Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms expanded to include certain legal services from 1 July 2026.

Known as Tranche 2, the reforms bring solicitors providing designated property and business transaction services under the regulatory framework overseen by AUSTRAC.

The purpose is to prevent criminals from using legitimate transactions to conceal illegally obtained money. For buyers and sellers, this means additional checks to verify identities, understand ownership arrangements and assess where transaction funds originate.

Property and business transactions can involve substantial amounts of money and complex ownership structures, making them potential targets for money laundering.

Under the new requirements, solicitors providing designated services must identify their clients, assess transaction risks and complete appropriate customer due diligence.

This may involve:

• Verifying the identity of buyers and sellers.
• Understanding the purpose of a transaction.
• Identifying individuals who ultimately own or control companies and trusts.
• Reviewing funding arrangements where necessary.
• Keeping appropriate records and meeting relevant AUSTRAC reporting obligations.

At Warland Solicitors & Conveyancing, these requirements form part of how we manage relevant property and business matters.

If you're buying or selling residential, investment or commercial property, your solicitor may request additional information before progressing with certain legal services.

Alongside existing conveyancing identity requirements, the reforms introduce broader obligations to understand the client and assess transaction risks. For example, if you're purchasing a property using a home loan, personal savings and a financial gift from a family member, your solicitor may ask questions about those funding arrangements.

Sellers may also need to provide additional details, particularly where a company or trust owns the property.

Our solicitors complete the required anti-money laundering checks as part of relevant conveyancing matters. Providing information early can help keep your transaction moving. For more information about the broader process, read our guide on what buyers should expect during the conveyancing process.

Business purchases and sales can involve additional checks because ownership arrangements are often more complex.

If you're buying a business through a company or trust, your solicitor may need to identify the individuals who ultimately own or control that entity. This is known as beneficial ownership. For example, someone purchasing a café through a family trust may need to provide trust documents, company records and information about how the purchase will be funded.

These checks help solicitors understand who is involved in the transaction and identify potential risks.

Not every aspect of a business sale attracts the same AML/CTF obligations. The requirements depend on the legal services being provided and the circumstances of the transaction.

Under the AML/CTF reforms, solicitors must complete appropriate customer due diligence before providing designated services, subject to limited exceptions.

Depending on your circumstances, Warland Solicitors & Conveyancing may request:

• Proof of identity: A driver's licence, passport or other acceptable identification.
• Personal information: Your full legal name, residential address and other required details.
• Company or trust documents: Records identifying ownership and control arrangements.
• Transaction details: Information about the property or business and the parties involved.
• Source of funds information: An explanation of how the purchase is being funded, with supporting documents where necessary.

The level of checking depends on the transaction's assessed risk. Some matters may require further enquiries, particularly where ownership structures or funding arrangements are complex.

Even if you've previously worked with a solicitor, updated information or additional verification may still be necessary.

The additional compliance requirements mean clients should provide identification and transaction information as early as possible.

If documents are missing or your solicitor needs further clarification about ownership or funding, this can delay the completion of required checks. For example, purchasing an investment property through a family trust may require additional time to review trust documents and identify beneficial owners.

Where customer due diligence cannot be completed, a solicitor may be unable to commence or continue providing a designated service, subject to applicable exceptions.

Completing the checks early helps reduce the risk of last-minute complications on settlement day.

A little preparation can make the new requirements easier to manage. Before your property or business transaction begins:

• Check your identification. Make sure your driver's licence or passport is current.
• Prepare funding information. Understand where your purchase funds are coming from.
• Gather company or trust documents. Have relevant ownership records available if an entity is involved.
• Disclose complex arrangements early. Tell your solicitor about overseas funds, third-party contributions or unusual ownership structures.
• Respond promptly. Provide requested information as soon as possible to avoid unnecessary delays.

Whether you're purchasing a home in Newcastle, selling property in Lake Macquarie or buying a business in Maitland, these requirements may form part of your legal transaction.

The key takeaway is straightforward: the new anti-money laundering laws require solicitors to complete additional checks, and preparing your information early can help avoid delays.

If you're buying or selling property or a business in Newcastle, Lake Macquarie, Maitland, Port Stephens, Cessnock or the Central Coast, Warland Solicitors & Conveyancing can explain how the new anti-money laundering requirements apply to your transaction. Our Cardiff-based solicitors can guide you through the necessary checks and legal processes. Call Warland Solicitors & Conveyancing on (02) 4954 7288 to discuss your matter.