AML/CTF Guide for Conveyancers in Australia

Part 1

When AML/CTF May Apply

Conveyancing assistance must directly advance the transaction. Assistance carried out after an existing court or tribunal order to give effect to it is excluded from the relevant table 6 items; work to obtain the order is not.

• Helping plan or carry out the sale, purchase or transfer of real estate.
• Receiving, holding, controlling or managing money or property for a covered transaction.
• Helping with related company, trust or legal-arrangement transactions.
• Providing another professional designated service listed in section 6.

Part 2

Main Risks in This Sector

These are starting points, not a ready-made risk rating. The business still needs to assess its own customers, services, countries, channels, transactions and technology.

• Property can absorb and move large amounts of criminal proceeds.
• Third-party deposits, rapid resales and unexplained price changes can hide the source or destination of value.
• Trusts, companies and nominees can hide the real buyer, seller or controller.
• Remote and urgent settlements can reduce the time available for proper checks.
• A counterparty who will not cooperate can create CDD, record and reporting issues.

Part 3

A Practical Control Plan

1. Step 1

   Confirm scope

   Map each conveyancing service and identify when the designated service starts.

2. Step 2

   Build the customer process

   Build customer and counterparty CDD into matter opening. Where delayed CDD is available for a real-estate transaction, complete it within 28 days after exchange of contracts or at least 3 days before the initially agreed settlement date, whichever is earlier.

3. Step 3

   Set the risk controls

   Set rules for deposits, third-party funding, trusts, overseas links and delayed CDD.

4. Step 4

   Train and connect people

   Train staff to escalate unusual instructions without alerting the parties.

5. Step 5

   Test and improve

   Review completed settlements for CDD timing, source information, alerts and evidence.

Part 4

Worked Examples

These examples show how the scope and risk questions can be joined. They do not replace the law or the facts of a real matter.

Part 5

Evidence That Should Be Easy to Find

• The designated-service and geographical-link analysis.
• The current sector risk assessment and the official sources used.
• Matter-opening and settlement checklists that show CDD timing.
• Records of deposits, third-party funding and source enquiries.
• Counterparty requests, responses and delayed-CDD reasoning.
• Escalation and SMR records kept separately with restricted access.
• Customer, beneficial ownership, risk, monitoring and reporting records.
• Training, internal review, independent assurance and remediation records.

Part 6

Common Mistakes

• Leaving CDD until just before settlement.
• Treating the contract name as proof of beneficial ownership.
• Ignoring third-party funding because settlement funds have cleared.
• Failing to join linked matters or related parties.
• Using urgency as the reason for an undocumented exception.