Buying or Selling Property in Victoria? New AML/CTF Checks Apply from 1 July 2026

From 1 July 2026, significant changes to Australia's anti-money laundering and counter-terrorism financing laws apply to lawyers providing certain property transaction services.

Law practices are required to have an AML/CTF program, undertake customer due diligence and identity checks, and respond to relevant risk indicators. If you are buying, selling or transferring property in Victoria, we may now need to ask more detailed questions about your identity, the parties involved in the transaction and, in some cases, the source of the money being used. These checks are becoming standard in the property transaction process.

What has changed?

Before 1 July 2026, lawyers acting in Victorian property transactions already had obligations to verify a client's identity, confirm the client's authority to deal with the property and comply with electronic conveyancing requirements. However, a conventional Verification of Identity (VOI) was primarily concerned with confirming that the client was the person named in the transaction. It did not ordinarily require the lawyer to undertake the broader anti-money laundering assessment now required under federal law.

From 1 July 2026, law practices providing certain services in connection with the planning or execution of a sale, purchase or transfer of real estate are regulated under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (the "Act"). For our clients, this means that the practical change is that the onboarding process may now involve more detailed questions and supporting documents than were previously required.

A client who has already completed an Australia Post or electronic VOI may still need to provide information about a company or trust structure, the purpose of the transaction, third-party involvement or the source of the purchase funds. These additional enquiries are a legal and regulatory requirement. They do not, by themselves, mean that the client or transaction is suspected of unlawful activity.

What information may your lawyer request?

The precise information required will depend on the type of client, the proposed transaction and the level of risk identified.

1. Proof of identity

Individual clients will generally be asked to provide reliable identification documents, such as a current passport or driver licence, together with information confirming their residential address and date of birth. Each person involved must be identified separately. For example, where a couple is purchasing a property together, both purchasers must complete the required checks.

2. Information about companies and trusts

Where a property is being purchased, sold or transferred by a company or trust, additional information will usually be required.

For a company, this may include:

• an ASIC company search;
• details of directors and shareholders;
• identification of the individuals who ultimately own or control the company; and
• evidence showing that the person instructing the lawyer is authorised to act for the company.

For a trust, the lawyer may need to review:

• the trust deed and any variations;
• the identity of the trustee;
• details of the appointor or other persons who control the trust;
• information about relevant beneficiaries or classes of beneficiaries; and
• where there is a corporate trustee, the ownership and control of that company.

These enquiries help establish the identity of the client, any person acting for the client, and the individuals who ultimately own, control or benefit from the relevant entity or arrangement.

3. The purpose of the transaction

Your lawyer may ask whether the property will be:

• your principal place of residence;
• an investment property;
• acquired for business purposes;
• held through a company or trust;
• transferred between family members; or
• purchased or sold on behalf of another person.

This information assists the lawyer in understanding whether the proposed transaction is consistent with the client's circumstances and instructions.

4. Source of purchase funds

Purchasers may be asked how the deposit and balance of the purchase price were obtained.

Common sources include:

• personal savings;
• salary or business income;
• a bank loan;
• proceeds from the sale of another property;
• a gift from a family member;
• an inheritance; or
• investment income.

Source of funds does not simply mean the bank account from which money is transferred. It refers to how the money was originally earned or obtained.

Depending on the circumstances, supporting documents may be requested, such as:

• bank statements;
• loan approval documents;
• a settlement statement from the sale of another property;
• a gift deed;
• probate or inheritance documents; or
• business or investment records.

Not every client will be required to produce extensive financial records. The level of checking is risk-based and will depend on the circumstances of the transaction.

Will an Australia Post VOI still be accepted?

A properly completed land title VOI may continue to be used as part of the identity verification process. Your lawyer may arrange for the verification to be completed through Australia Post or another suitable identity verification provider.

However, an Australia Post VOI only addresses part of the lawyer's obligations. Your lawyer may still need to collect information concerning:

• the nature and purpose of the transaction;
• companies, trusts or beneficial owners;
• the source of funds;
• persons acting on behalf of another party; and
• other relevant risk factors.

Clients should therefore expect to complete an additional client onboarding or customer due diligence (CDD) form even where a property VOI has already been completed.

Could the additional checks delay settlement?

The additional checks should not cause material delay where the required information is provided promptly.

However, a lawyer will generally need to complete the required customer due diligence before providing a regulated service, unless the matter falls within a permitted delayed-verification procedure. A lawyer may be unable to proceed with certain work if adequate information cannot be obtained or significant inconsistencies remain unresolved.

Purchasers should therefore contact a property lawyer as early as possible, particularly before (without limitation):

• signing a Contract of Sale;
• making an unconditional offer;
• attending an auction;
• transferring a large deposit;
• purchasing through a company or trust; or
• receiving purchase funds from overseas or from a third party.

Early advice allows legal, ownership, financing and compliance issues to be addressed before they place the transaction at risk.

How can you prepare?

To help avoid delays, have the following information available when instructing your lawyer:

• Identification documents: your current passport, driver licence or other accepted identification.
• Contact information: your current residential address, telephone number and email address.
• Transaction parties: details of all purchasers, vendors and persons providing instructions.
• Company or trust documents: including relevant company records, trust deeds and amendments.
• Source of funds: an explanation of how the deposit and purchase funds were obtained.
• Third-party contributions: details of any family member, company or other person contributing funds.
• Authority to act: evidence of your authority where you are acting for another person or entity.

Tell your lawyer early if any party is overseas, acting under a power of attorney, purchasing through a trust, receiving gifted funds or proposing an unusual ownership arrangement.

How we can assist

Property transactions often involve more than completing forms and attending settlement. The ownership structure, contract conditions, financing arrangements, tax implications and timing of legal checks can materially affect the client's position.

Our property law team can assist with:

• residential and commercial property purchases and sales;
• contract reviews before signing or auction;
• property transfers between family members;
• company and trust purchases;
• verification of identity and AML/CTF onboarding;
• initial CDD;
• review of third-party funding arrangements; and
• electronic conveyancing and settlement through PEXA.

Contact our office before signing a Contract of Sale to discuss your proposed transaction and the documents you should prepare.

This article provides general information only and does not constitute legal advice. The information is current as at 2 July 2026. Legal requirements and regulatory guidance may change. Advice should be obtained for your particular circumstances.