Why Your Conveyancer Asks for Identification and Source of Funds
Buying or selling property involves significant amounts of money and important legal documents. As part of your conveyancing matter I will need to confirm your identity and may also ask questions about where the funds for the transaction are coming from.
These checks are a normal part of the conveyancing process. They help protect clients and the property system from fraud, money laundering and other illegal activity.
Why do these checks apply to conveyancing?
From 1 July 2026, conveyancers providing certain services are subject to Australia’s anti-money laundering and counter-terrorism financing requirements.
These requirements mean that I must take reasonable steps to understand who my clients are, who is ultimately involved in a transaction and where appropriate the source of the money being used.
Being asked for this information does not mean that you are suspected of doing anything wrong. Similar checks are conducted by banks, accountants and other professionals involved in financial transactions.
What identification will I need?
The identification required will depend on your circumstances. You may be asked to provide documents such as:
• a passport
• a driver licence
• a Medicare card or other supporting identification
• evidence of your residential address
If you are acting through a company, trust or self-managed superannuation fund further information may be required about the entity, its structure and the people who own or control it.
Identity checks required for anti-money laundering purposes may overlap with the verification of identity checks already completed for property transactions. However, the two processes serve different purposes so additional information may sometimes be needed.
What does “source of funds” mean?
Source of funds means where the money being used for a particular transaction has come from.
For a property purchase, the funds may come from:
• personal savings
• a home loan
• the sale of another property
• a gift or loan from a family member
• an inheritance
• the sale of investments or other assets
Depending on the transaction and your circumstances I may ask you to provide supporting information. This could include a bank statement, loan approval, settlement statement, gift letter or another document showing the origin of the funds.
In some circumstances I may also need information about your source of wealth. This is a broader question about how your overall financial position was established such as through employment, business income, investments, property ownership or an inheritance.
Why might I be asked additional questions?
The information required will not be identical for every client or transaction. Anti-money laundering checks are risk-based which means that further questions may be necessary where a transaction involves:
• money provided by another person
• funds transferred from overseas
• a company, trust or other complex ownership structure
• information that does not match the transaction
• an unusual payment arrangement
• difficulty identifying the people who ultimately own or control an entity
If I need further information I will explain what is required and how you can provide it. Responding promptly will help prevent unnecessary delays.
How will my information be handled?
Identification and financial information will be handled carefully and stored securely in accordance with applicable privacy, record-keeping and professional obligations.
In some circumstances conveyancers may also be legally required to provide information to AUSTRAC or another government authority. Information will only be collected, used or disclosed where there is a proper professional or legal reason for doing so.
What happens if I do not provide the information?
I must complete the required checks before providing certain conveyancing services.
If the requested identification or supporting information is not provided I may be unable to commence or continue acting and your transaction could be delayed. It is therefore important to provide the requested documents as early as possible.
How I can assist
I understand that requests for identification and financial information can feel unfamiliar or intrusive. I will explain what is required, why it is needed and how to provide it securely.
Preparing this information early can help your conveyancing matter proceed smoothly and reduce the risk of delays as settlement approaches.
If you are buying, selling or transferring property in Victoria, please contact me to discuss your conveyancing requirements.
This information is general in nature and does not constitute legal or financial advice. Anti-money laundering and counter-terrorism financing requirements may vary depending on the services provided, the transaction and each client’s circumstances.