Why Is My Lawyer Asking So Many Questions? The New AML Rules Explained
If you've bought or sold property before, your next conveyancing transaction might feel slightly different.
You may be asked for more identification.
You may be asked questions about where money is coming from.
You might need to provide documents you weren't asked for last time.
And you might find yourself thinking:
"I've been a client for years. Why do you need all of this?"
The answer is Australia's new anti-money laundering laws.
What changed on 1 July 2026?
From 1 July 2026, Australia's Anti-Money Laundering and Counter-Terrorism Financing regime expanded to cover certain services provided by professions including:
lawyers;
conveyancers;
accountants;
real estate professionals; and
trust and company service providers.
For law firms and conveyancers providing regulated services, this brings new obligations around client identification, due diligence, record keeping, risk management and reporting.
What does that mean for you?
For most clients, it simply means we may need to ask more questions and collect more information than we have in the past.
Depending on the transaction, that may include verifying:
your identity;
who you are acting for;
the ownership or control of companies or trusts;
the purpose of a transaction; and
in some circumstances, information relating to the source of funds or source of wealth.
These aren't questions being asked because you've done anything wrong.
They form part of the obligations that now apply to regulated professional services.
"But you've acted for me before"
We know.
And we genuinely appreciate returning clients.
But knowing you personally or having acted for you previously does not necessarily remove the need to comply with the current regulatory requirements.
There may still be information or updated identification we need to obtain.
Why has Australia introduced these rules?
Property can involve very large transfers of money.
AUSTRAC has identified real estate and professional services as areas that can be exploited to move or disguise proceeds of crime.
The reforms are intended to make it harder for criminals to use legitimate businesses and professional services to hide or move illicit funds.
Will it slow down my conveyancing?
It doesn't have to.
The best thing clients can do is provide requested identification and information early.
If we ask you for a document, there is usually a reason for it.
Providing it promptly helps us complete the required checks and keep your transaction moving.
This is particularly important when you have a short settlement period or are trying to exchange contracts quickly.
A little more paperwork. A lot more protection.
We understand nobody gets excited about providing identification documents.
But these requirements are now part of the Australian regulatory landscape.
At Neilson + Co Legal, our aim is to make the process as straightforward as possible while ensuring your transaction is handled safely and in accordance with our legal obligations.
So if we ask you a few more questions than we did when you bought your last house – don't be alarmed.