The new age in titles registration
As homeowners, we strive to pay off our mortgages and one day obtain a copy of our Title Deed, officially known as a Certificate of Title. That little bit of paper that says your castle is yours. Well not anymore.
Major Changes to Anti-Money Laundering Laws: What Clients Need to Know from 1 July 2026
From 1 July 2026, Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime expands significantly to include solicitors, conveyancers, accountants, real estate professionals and trust and company service providers. These reforms, commonly referred to as the “Tranche 2 Reforms”, represent one of the most substantial regulatory changes affecting the legal profession in decades.
Historically, AML/CTF obligations applied primarily to banks, financial institutions and casinos. However, regulators have identified that criminals frequently utilise professional advisers, company structures, trusts and property transactions to conceal the origins of illicit funds. The reforms are intended to close these gaps and align Australia with international anti-money laundering standards.
What Does This Mean for Solicitors?
From 1 July 2026, solicitors who provide certain “designated services” will be required to comply with AML/CTF legislation and AUSTRAC reporting obligations. This includes many common commercial and property-related legal services, including:
- Establishing companies;
- Establishing trusts;
- Restructuring companies or trusts;
- Assisting with the purchase or sale of businesses;
- Certain property transactions;
- Acting in relation to the transfer of legal entities or interests; and
- Providing trust and company administration services.
Law firms providing these services must enrol with AUSTRAC, implement AML/CTF compliance programs, conduct customer due diligence, maintain records and report suspicious matters.
Increased Client Identification Requirements
Clients can expect to be asked for more information than ever before.
Before a solicitor can provide a regulated service, the law firm will generally be required to verify the client’s identity and obtain sufficient information to understand who the client is, who ultimately controls the client, and the purpose of the transaction or structure being established.
This may include requests for:
- Driver licences and passports;
- Proof of residential address;
- Company searches and corporate records;
- Trust deeds and trustee information;
- Details of directors, shareholders and beneficiaries;
- Information regarding the source of funds being used in a transaction; and
- Information regarding the source of wealth of individuals involved in higher-risk matters.
For many clients, this process will feel similar to opening a bank account or applying for finance.
Trusts and Companies Under Greater Scrutiny
One of the primary focuses of the reforms is the use of trusts and corporate structures.
Where a client wishes to establish a company or trust, solicitors may be required to identify and verify the individuals who ultimately own, control or benefit from that structure. In some circumstances, this may extend to identifying ultimate beneficial owners behind multiple layers of entities.
Clients should therefore expect additional questions about ownership structures, family groups, related entities and the intended purpose of the structure being established.
Property Transactions
Property transactions remain a significant focus of anti-money laundering regulators.
Solicitors and conveyancers acting in property transactions may need to undertake enhanced due diligence where circumstances indicate elevated risk. This may involve enquiries regarding the source of purchase funds, the purpose of the acquisition, overseas ownership interests, or unusual transaction structures.
While the vast majority of transactions will proceed without issue, the reforms require legal practitioners to take reasonable steps to understand the transaction and identify suspicious activity where appropriate.
What Does This Mean for Clients?
For most clients, the reforms will result in:
- More identification documents being requested;
- Additional forms and verification procedures;
- Longer onboarding processes at the commencement of a matter;
- Greater scrutiny of company and trust structures; and
- Questions regarding the source of funds and source of wealth in certain transactions.
Although these requirements may initially seem burdensome, they are designed to protect the integrity of Australia’s financial and property systems and reduce the ability of criminals to misuse professional services.
How Evolution Legal Can Help
Evolution Legal is committed to assisting clients navigate these new obligations efficiently and with minimal disruption. We are implementing comprehensive AML/CTF compliance procedures to ensure that property, commercial, trust and business transactions continue to proceed smoothly while meeting the requirements imposed by the new legislation.
If you are establishing a company or trust, purchasing or selling property, acquiring a business, or undertaking a significant commercial transaction, our team can guide you through the identification and verification requirements and explain why certain information may be required.
The new AML/CTF regime marks a significant change for both legal practitioners and clients. While additional due diligence will become a standard part of many transactions from 1 July 2026, these measures are intended to strengthen confidence in Australia’s legal, financial and property systems and ensure that professional services cannot be used to facilitate financial crime.
