When conveyancing is a designated service
Item 1 of table 6 covers assisting a person in the planning or execution of a transaction, or otherwise acting for them in a transaction, to sell, buy or otherwise transfer real estate, in the course of carrying on a business. AUSTRAC guidance lists the typical conveyancing steps as falling within it:
- preparing, reviewing or lodging the contract of sale and the transfer of land instrument;
- researching property titles, strata documents or land use specifications;
- coordinating with financial institutions about payments and the discharge of a mortgage;
- holding funds for a buyer and disbursing trust funds at settlement, or organising the release of the deposit to the seller;
- preparing documents for a registry authority to transfer the real estate.
Holding and disbursing a client's money as part of the transaction can also fall under item 3 of table 6.
When the service starts
AUSTRAC guidance says you start providing the designated service when you act on instructions and a relevant transaction exists. A transaction typically exists when there is at least one buyer and one seller and:
- in a private treaty sale, or an auction that does not meet reserve, the buyer and seller agree the sale price, verbally or in writing, before any deposit is paid or contracts are exchanged; or
- in an auction that meets reserve, the buyer is successful at auction.
AUSTRAC's example is a firm that gives a prospective buyer general advice and prepares a draft contract before any property has been secured. At that point there is no transaction and the designated service has not started. It starts when the buyer wins at auction.
What is in and out
| Situation | Designated service? | Source |
|---|---|---|
| Sale or purchase of a house, unit or land | Yes | Table 6 item 1 |
| Transfer with no payment, such as a parent transferring the family home to a child | Yes | AUSTRAC guidance: real estate services apply whether or not there is consideration |
| Transfer under a court or tribunal order, such as after a grant of probate or under family law consent orders | No, where the transfer is pursuant to, or results from, the order | Table 6 item 1(b) and AUSTRAC guidance |
| Lease of 30 years or less | No | Definition of real estate in s 5 of the Act |
| Leasehold interest of more than 30 years | Yes | Definition of real estate in s 5 of the Act |
| A town agent attending settlement for you | You remain the reporting entity. The agent acts under your policies | AUSTRAC guidance |
The obligations in brief
- Enrol with AUSTRAC no later than 28 days after the day you start providing a designated service (s 51B). For a practice already providing one on 1 July 2026, the 28 days ran from that day.
- Have an AML/CTF program: a risk assessment (s 26C), policies (s 26F) and a compliance officer at management level (s 26J).
- Customer due diligence: initial, before you start the service (s 28); ongoing, while the relationship lasts (s 30); and enhanced for high-risk clients and foreign politically exposed persons (s 32).
- Report suspicious matters (s 41) and transfers of physical currency of $10,000 or more (s 43, within 10 business days).
- Keep records under Part 10 of the Act.
- Do not tip off (s 123).
AUSTRAC publishes a conveyancer program starter kit for practices with 15 or fewer personnel that meet its suitability criteria, with an onboarding form, a due diligence form and worked examples. AUSTRAC says you must assess whether it suits your practice.
Timing of the checks on a property matter
The default rule is in s 28(1): do not start providing the designated service until initial customer due diligence is done. Property moves faster than that at auction, so the Rules allow a delay for buyers.
Under s 6-32(3) and (4) of the Anti-Money Laundering and Counter-Terrorism Financing Rules 2025, where the service is covered by item 1 of table 6 and the client is the buyer or transferee, you may start before completing initial customer due diligence. Your policies must then have it completed as soon as reasonably practicable (s 29(c)(i)) and within the period in s 6-32(4), which ends at the earlier of:
- 28 days after the exchange of contracts; and
- 3 days before the initially agreed day for settlement.
The delay is subject to s 29 of the Act. You must determine on reasonable grounds that starting first is essential to avoid interrupting the ordinary course of business and that any additional risk is low, and you must have policies to complete the checks as soon as reasonably practicable and to manage the risk in the meantime. AUSTRAC guidance says inconvenience alone is not a sufficient reason. We suggest recording that determination on the file each time you rely on it.
AUSTRAC's guidance on delayed initial customer due diligence states the same limit. One worked example in its conveyancer starter kit has the conveyancer complete the checks 15 days after exchange. That is an example of a practice finishing earlier. The 28-day and 3-day limit comes from the Rules. Section 6-32(3) covers buyers and transferees only. For a seller, the only delay available is the general one in s 6-12 of the Rules, which has its own conditions and a 20 business day limit.
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Checklist: what to record on the file
Section 111(3) requires records that show the type and content of the data you collected and any analysis, risk assessment or decision making about the client. AUSTRAC guidance adds that the records must clearly show the steps you took to verify the information and why you applied the level of due diligence you did. For a property matter that comes to this:
- When the service started. The date the price was agreed or the auction was won, and the date you acted on instructions.
- The client's identity and the steps taken to establish they are who they claim to be (s 28(2)(a), s 28(3)(a)). AUSTRAC guidance says you record the details of the document used, such as the licence or passport details. The Act does not require a copy.
- Whether the client is buying or selling for themselves or on behalf of someone else (s 28(2)(b)). AUSTRAC's worked examples have the conveyancer ask this question directly.
- Anyone acting for the client, such as a buyer's agent or family member, and their authority to act (s 28(2)(c)).
- Beneficial owners if the buyer or seller is a company or trust (s 28(2)(d)).
- Politically exposed person and sanctions status (s 28(2)(e)).
- The nature and purpose of the transaction (s 28(2)(f)): a home to live in, an investment, a transfer between family members.
- How the purchase is funded: loan from an Australian lender, savings, a gift, sale of another property, funds from overseas. AUSTRAC's worked examples collect this on the onboarding form.
- The risk rating and the reasons (s 28(3)(b), s 111(3)(b)).
- If you delayed the checks: your reasons under s 29, the deadline under s 6-32(4), and the date the checks were completed.
- Changes before settlement: a new purchaser or nominee added to the contract, a change in where the money is coming from, instructions arriving from a third party, a request to send surplus funds to an unrelated account, and what you did in response (s 30).
- Settlement date. For a one-off conveyance, completion starts the 7-year period in s 111(2).
The verification of identity you already carry out for electronic conveyancing comes from a different set of rules. Customer due diligence under the Act covers more ground, including purpose, risk and who the client is acting for. Your AML/CTF program should say how the two processes fit together. For the non-AML parts of the file, see conveyancing file notes: what to record on a property matter.
What to record, when, and how long to keep it
| What to record | When | How long to keep it |
|---|---|---|
| Customer due diligence records: information collected, verification steps, risk rating and reasons, any delay decision | Before you start, or within the s 6-32 period for a buyer | 7 years from when the business relationship ends or the one-off transaction is complete (s 111(2)) |
| Ongoing due diligence: changes to parties, funding or purpose, and your response | Between instruction and settlement | Same 7-year period (s 111(2)) |
| Transaction records sufficient to reconstruct the transaction: amounts, parties, payment method, settlement statement, trust ledger entries | As the transaction happens | 7 years from the day the record is made (s 107(3)) |
| Documents the client gives you about the transaction, or copies | When you receive them | 7 years after the document is given (s 108(2)) |
| AML/CTF program records: risk assessment, policies, training, reviews | As you build and run the program | Until 7 years after the record is no longer relevant to your Part 1A obligations (s 116(3)) |
| Suspicious matter decision records and copies of reports | When a concern is escalated and decided | Kept as program records, stored securely with restricted access |
AUSTRAC guidance gives this example for a one-off transaction: completed on 4 September 2027, the due diligence record is kept until 3 September 2034. State conveyancing and legal profession rules on file retention apply separately. See how long to keep file notes in Australia.
Example file note: first call with a buyer
Fictional client and facts. The buyer has just won at auction, so the designated service has started.
- The transaction
Priya was the successful bidder at auction on 8 August 2026 for a three-bedroom house in Ballarat. Price $780,000. Contracts were exchanged on the day and a 10 per cent deposit was paid to the selling agent. Settlement is set for 19 September 2026.
- Who we are acting for
Priya confirmed she is buying in her own name, for herself, and is not buying for anyone else. No company or trust is involved. No buyer's agent. She gave the instructions herself.
- Purpose
A home to live in. She currently rents in Ballarat and works at the hospital as a nurse.
- How the purchase is funded
- Home loan from an Australian bank, approved before the auction.
- Deposit of $78,000 from her own savings account.
- A gift of $40,000 from her parents, who live in Adelaide, to be paid into her account before settlement. She will send a signed gift letter and the bank statement showing the transfer.
- Checks
- Explained that we need to confirm her identity and ask standard questions under anti-money laundering law, and that this applies to every client.
- Asked whether she or a close family member holds a prominent public position in Australia or overseas. She said no.
- Because she won at auction, we are completing the checks after starting work, as our policy allows for buyers. The last day is 5 September 2026, which is 28 days after exchange and earlier than 3 days before settlement.
- Onboarding form sent after the call. Identity check booked for 12 August 2026.
- Next steps
- Priya: return the onboarding form, bring her driver's licence on 12 August, send the gift letter and statement when the transfer is made.
- Us: complete the due diligence form and risk rating by 14 August 2026. Order searches. Confirm settlement figures with her lender.
- Follow-up: check before settlement that the funding matches what is recorded here.
If the gift later arrives from an unrelated company instead of her parents, the mismatch with this note is what prompts further questions under s 30.
Suspicions, reports and tipping off
A suspicious matter report is due within 3 business days after the day you form a suspicion on reasonable grounds, or within 24 hours if it relates to terrorism financing (s 41(2)). AUSTRAC guidance says the obligation applies even if you do not end up providing the service.
Under s 123 it is an offence to disclose that a report has been given or is required, or the report itself, where the disclosure would or could reasonably be expected to prejudice an investigation. The maximum penalty is imprisonment for 2 years or 120 penalty units, or both. AUSTRAC guidance says it expects sensitive records such as suspicious matter reports to be stored securely, with access limited to authorised staff.
So the matter file holds the facts: what the client said, what documents arrived, what you asked. The escalation to your compliance officer, the reasoning and any report copy go in a separate restricted record. AUSTRAC guidance says asking a client reasonable questions is not tipping off by itself, and that you can explain the questions as part of your obligation to know your customer. In its worked example the business documents the interaction and the reason it gave.
Matters already open on 1 July 2026
Section 36 treats a client as a pre-commencement customer if, at the start of 1 July 2026, the business relationship involved only table 5 services, table 6 services or item 2 of table 2. Initial customer due diligence under s 28(1) does not apply to that client unless a suspicious matter reporting obligation arises, or there is a significant change in the nature and purpose of the relationship that results in medium or high risk (s 36(3) and (4)). You still have to monitor for unusual transactions and behaviour (s 30(2)(a)) and for those changes (s 30(2)(d)).
Where a file note tool fits
To be plain about scope: CallNote is not an AML/CTF program, an identity verification tool or a reporting system. It does not check identity documents, screen for sanctions or send anything to AUSTRAC. It helps you keep a consistent record of client conversations, and on a property matter most of the purpose and funding information arrives in short phone calls.
CallNote turns a call or meeting transcript that already exists into a structured file note. Transcripts come in automatically from Aircall, Dialpad and Microsoft Teams, or you paste or upload one, or dictate a voice memo after a meeting. There is no conveyancing-specific template. You work from the general template or build one from a past note of your own. After review the note is sealed with a checksum and locked, and later changes are append-only amendments. We never record calls, and data is hosted in Sydney.
CallNote has no native integration with conveyancing or practice management software such as LEAP or Smokeball. The note goes to the matter by PDF or copy and paste.
Related guides: Tranche 2 for law firms, which covers legal professional privilege and the other table 6 services, and Tranche 2 for accountants and bookkeepers. Our law firm file note compliance checklist covers the general file note standard.
Common questions
Are conveyancers covered by Tranche 2 AML/CTF?
Yes. Since 1 July 2026, assisting a person in the planning or execution of a transaction to sell, buy or otherwise transfer real estate, in the course of carrying on a business, is a designated service under item 1 of table 6 in section 6 of the AML/CTF Act 2006. A conveyancing practice that provides it must enrol with AUSTRAC and meet the Act's obligations.
When does a conveyancer have to complete customer due diligence on a buyer?
The default is before starting the service (s 28). For a buyer or transferee, s 6-32 of the AML/CTF Rules 2025 allows a start first, with the period for completing the checks ending at the earlier of 28 days after exchange of contracts and 3 days before the initially agreed settlement day. The conditions in s 29 of the Act must be met, including a low additional risk.
How long must conveyancers keep AML/CTF records?
Customer due diligence records are kept for 7 years from when the business relationship ends or the one-off transaction is complete (s 111(2)). Transaction records are kept for 7 years from the day the record is made (s 107). Documents given by the client are kept for 7 years after they are given (s 108). Program records are kept until 7 years after they stop being relevant (s 116).
Is a transfer of property between family members for no money covered?
Yes. AUSTRAC guidance says the real estate designated services apply whether or not there is any payment or other consideration. Its example is a conveyancer who assists a parent to transfer the family home to their child without consideration. Transfers pursuant to a court or tribunal order are excluded (table 6 item 1(b)).
Does a conveyancer need to keep a copy of the client's driver's licence?
The AML/CTF Act does not require it. AUSTRAC guidance says you must keep records of what you did to identify the client and the information they provided, for example the details of the document used, and that the Act does not require copies of identification documents. Other laws or rules that apply to your practice may require a copy.
What should a conveyancer write on the file if something looks suspicious?
Record the facts on the matter file: what was said, what arrived, what you asked. Keep the escalation, the reasoning and any suspicious matter report in a separate restricted record. Section 123 makes it an offence to disclose that a report was given or is required where that could prejudice an investigation, and AUSTRAC guidance expects those records stored securely.