> ## Documentation Index
> Fetch the complete documentation index at: https://docs.clearaml.com.au/llms.txt
> Use this file to discover all available pages before exploring further.

# ClearAML for lawyers and conveyancers: AML guide

> How Australian law firms and conveyancers meet Tranche 2 AML/CTF obligations using ClearAML — client verification, UBO tracing, and AUSTRAC reporting.

From 1 July 2026, law firms and conveyancing practices in Australia become reporting entities under the AML/CTF Act. The Tranche 2 reforms require you to verify every client receiving a designated service, implement a written AML/CTF Program, and report suspicious activity to AUSTRAC. This guide explains what is required and how ClearAML supports your practice.

## Why lawyers and conveyancers are affected

Legal professionals are among the most exposed "gatekeeper" professions identified by AUSTRAC. Property transactions, trust accounts, and corporate formation work are all high-value channels that can be exploited to move illicit funds. The Tranche 2 reforms target the following designated services:

* **Conveyancing** — acting on the purchase, sale, or transfer of real property
* **Trust account transactions** — receiving, holding, or disbursing client money through a trust account
* **Legal entity creation** — forming companies, trusts, or other legal structures on behalf of a client
* **Asset transactions** — facilitating the transfer of business assets or managing client assets

<Info>
  The obligations apply even if you are acting as an intermediary rather than the principal. If you are facilitating the transaction on behalf of a client, you are the reporting entity.
</Info>

## Key obligations under Tranche 2

Before providing any designated service, your firm must:

1. **Enrol with AUSTRAC** as a reporting entity (enrolment deadline: 29 July 2026)
2. **Appoint a Compliance Officer** to own your AML/CTF Program
3. **Implement a written AML/CTF Program** covering your firm's risks
4. **Verify the identity of each client** (KYC) before providing designated services

<Warning>
  Obligations are live from **1 July 2026**. Penalties for non-compliant corporations can reach **$22.2 million per contravention**. For individuals, the maximum is **$2.22 million per contravention**.
</Warning>

## How to use ClearAML in your legal practice

<Steps>
  <Step title="Create a client profile for each matter">
    Add clients manually or import your existing client list. ClearAML supports matter-based filing so you can organise compliance checks by matter number, not just client name — essential for high-volume practices handling multiple files per client.
  </Step>

  <Step title="Send a secure verification link">
    With one click, send your client a secure link they complete on their phone. They upload or photograph their identity document, complete a biometric liveness check, and submit. You receive the verified result — no office visit required.
  </Step>

  <Step title="Trace beneficial owners">
    For company clients, ClearAML performs automatic beneficial owner (UBO) tracing by looking up ASIC registers. This satisfies the enhanced due diligence (EDD) requirements for corporate clients and gives you a documented ownership map.
  </Step>

  <Step title="Screen for PEPs and sanctions">
    Every client is screened against global Politically Exposed Person (PEP) and sanctions watchlists. Matches are flagged for your review before the matter proceeds.
  </Step>

  <Step title="Generate ARNECC-compliant VOI records">
    ClearAML's biometric liveness checks and DVS integration meet ARNECC standards for digital Verification of Identity (VOI) under the Model Participation Rules — suitable for both legal intake and electronic conveyancing settlements.
  </Step>

  <Step title="Store everything in the forensic audit log">
    Every check and decision is time-stamped and stored. Your compliance records are retained in Australian data centres in line with the 7-year record-keeping requirement and are always ready for AUSTRAC review.
  </Step>
</Steps>

## Legal-specific workflows

<CardGroup cols={2}>
  <Card title="Trust account KYC" icon="building-columns">
    Any client whose funds pass through your trust account requires verified identity. ClearAML links each verification to the relevant client file so you have a complete, auditable record for each matter.
  </Card>

  <Card title="Conveyancing KYC" icon="house">
    Verify vendors, purchasers, and mortgagors as part of your settlement workflow. ClearAML meets ARNECC's digital VOI standards so you can complete verification remotely without requiring clients to attend your office.
  </Card>

  <Card title="Beneficial owner tracing" icon="sitemap">
    For company or trust clients, automatically trace and document the ultimate beneficial owners (UBOs). The ownership graph shows exactly who controls the entity at every tier.
  </Card>

  <Card title="Matter-based filing" icon="folder-open">
    Organise all compliance checks by matter number. Each matter contains its own verification records, risk assessments, and audit log — making end-of-matter reporting straightforward.
  </Card>
</CardGroup>

## Key features for law firms

<AccordionGroup>
  <Accordion title="Remote verification — no office visit needed">
    Send a secure link to your client. They verify on their phone in minutes. You receive a compliant VOI report instantly. This eliminates the time and cost of in-person identity checks at listing or signing.
  </Accordion>

  <Accordion title="Billable by design">
    ClearAML generates a tax invoice for every check. You can list the AML/VOI check as a standard disbursement on your client's final bill — so compliance does not eat into your firm's margin.
  </Accordion>

  <Accordion title="Automated risk scoring">
    The risk engine calculates scores based on client type, industry, and geography. High-risk clients are flagged automatically so your team focuses enhanced due diligence where it is actually needed.
  </Accordion>

  <Accordion title="Forensic audit logs">
    Every action — every click, status change, and risk decision — is time-stamped in a tamper-evident forensic ledger. You are always ready for an AUSTRAC review or independent audit.
  </Accordion>

  <Accordion title="AUSTRAC reporting">
    Generate Suspicious Matter Reports (SMRs) and the supporting records for your annual compliance report and independent reviews directly from within ClearAML.
  </Accordion>

  <Accordion title="CLE & CPD training">
    ClearAML's built-in training modules help your staff meet their annual CPD and CLE obligations on AML compliance — keeping your practising certificates safe at no additional cost.
  </Accordion>
</AccordionGroup>

## Frequently asked questions

<AccordionGroup>
  <Accordion title="Is ClearAML VOI compliant under ARNECC?">
    Yes. ClearAML meets ARNECC standards for digital Verification of Identity (VOI), providing the "reasonable steps" required for electronic conveyancing under the Model Participation Rules.
  </Accordion>

  <Accordion title="Does this replace our existing VOI process?">
    Yes. The biometric liveness checks and DVS integration meet ARNECC's digital VOI standards, making ClearAML suitable for both legal intake and conveyancing settlements.
  </Accordion>

  <Accordion title="Can we bill the verification cost to the client?">
    Yes. ClearAML provides a tax invoice for every check so you can list the AML/VOI check as a standard disbursement on your final bill.
  </Accordion>

  <Accordion title="Will ClearAML integrate with LEAP or Smokeball?">
    Practice management system integrations are on the development roadmap. Foundation members can vote on which system ClearAML connects with first.
  </Accordion>

  <Accordion title="Is client data stored securely in Australia?">
    Yes. All data is encrypted at rest and in transit using bank-grade 256-bit encryption. ClearAML hosts exclusively in Australian data centres to ensure data sovereignty.
  </Accordion>
</AccordionGroup>