Property Transfers
AML obligations apply when lawyers or conveyancers provide services directly advancing real property transfers - from contract preparation to settlement completion.
Legal Professionals
AUSTRAC AML for Lawyers & Conveyancers
Comprehensive AUSTRAC AML/CTF guide for lawyers and conveyancers under Tranche 2 reforms. Understand Legal Professional Privilege protections, designated services, and compliance requirements from 1 July 2026.
Key Information
AUSTRAC Tranche 2: What Lawyers and Conveyancers Need to Know
From 1 July 2026, lawyers and conveyancers become reporting entities under Australia's AML/CTF Act when providing certain services. This guide covers your obligations, explains Legal Professional Privilege protections, and helps you prepare for compliance.
Who Is Covered?
- Legal practitioners - Solicitors, barristers, and law practices regulated by state/territory legal profession bodies
- Licensed conveyancers - Practitioners licensed under state/territory conveyancing legislation
- In-house lawyers - When providing designated services to external clients
Designated Services That Trigger Obligations
You have AML/CTF obligations when you provide these designated services:
- Real property services - Activities directly advancing the transfer of interests in real property
- Trust account services - Managing, arranging, or investing funds on behalf of clients
- Entity services - Creating, operating, or managing companies, trusts, partnerships, or similar legal structures
- Directorship services - Acting as registered agent, director, secretary, or partner on behalf of clients
Legal Professional Privilege (LPP) Protections
For legal practitioners only, the AML/CTF Act preserves Legal Professional Privilege. This means:
- You don't need to produce privileged documents to AUSTRAC
- Suspicious matter reports needn't include privileged information
- LPP must be claimed using the official AUSTRAC LPP form
- LPP doesn't exempt you from enrolling, developing an AML/CTF program, or conducting CDD
Note: Licensed conveyancers do NOT have LPP protections and must report all suspicious matters without exception.
Key Compliance Timeline
- 31 March 2026: AUSTRAC enrolment opens
- 1 July 2026: AML/CTF obligations commence
- 29 July 2026: Enrolment deadline
What You Need to Do Now
- Audit your services - Identify which services trigger AML/CTF obligations
- Develop your AML/CTF program - Part A (customer identification) and Part B (ML/TF risk assessment)
- Train your staff - Ensure all relevant personnel understand their obligations
- Update client intake procedures - Build CDD into your engagement processes
- Prepare for AUSTRAC enrolment - Ready to enrol from 31 March 2026
Key Requirements
Trust Account Operations
Managing, arranging, or investing funds on behalf of clients through trust accounts triggers AML/CTF obligations regardless of the underlying matter type.
Company Formation
Creating, operating, or managing companies, trusts, or other legal structures on behalf of clients is a designated service requiring customer verification.
Legal Professional Privilege
Lawyers (not conveyancers) retain LPP protections. AUSTRAC cannot compel production of privileged documents, but privilege doesn't exempt you from program obligations.
Identity Verification
Verify client identity when engagement commences for designated services. Collect full name, DOB, address and verify against government documents or electronic sources.
Suspicious Matter Reports
Report suspicions to AUSTRAC within required timeframes. For lawyers, LPP applies - you don't need to report privileged communications, but must report other suspicious matters.
Frequently asked questions
What's the difference between lawyer and conveyancer obligations?
Both lawyers and conveyancers have the same core AML/CTF obligations when providing designated services. The key difference is Legal Professional Privilege: lawyers retain LPP protections meaning they don't have to produce privileged documents to AUSTRAC or report suspicious matters that would reveal privileged communications. Conveyancers have no LPP protections and must report all suspicious matters.
Which legal services trigger AML obligations?
Designated services include: (1) services directly advancing real property transfers, (2) managing, arranging or investing client funds through trust accounts, (3) creating, operating or managing companies, trusts, partnerships or similar structures, and (4) acting as registered agent, director or secretary of a company. Litigation, criminal defense, family law, and pure legal advice don't trigger obligations.
How does Legal Professional Privilege work under Tranche 2?
LPP is preserved for legal practitioners. You don't need to produce privileged documents to AUSTRAC or include privileged information in suspicious matter reports. However, LPP doesn't exempt you from: enrolling with AUSTRAC, developing an AML/CTF program, conducting customer due diligence, or keeping records. You must use the AUSTRAC LPP form when claiming privilege.
When must we enrol with AUSTRAC?
AUSTRAC enrolment opens 31 March 2026, with AML/CTF obligations commencing 1 July 2026. Law firms and conveyancing practices providing designated services must complete enrolment by 29 July 2026. Prepare your AML/CTF program now so you're ready when obligations begin.
Compliance for Legal Professionals
ARCaml provides AML/CTF compliance tools designed for law firms and conveyancing practices. Automate customer verification, manage trust account oversight, and streamline AUSTRAC reporting with LPP protections built in.