AMLify's Source-of-Funds Checks for Conveyancing Lawyers
AMLify now automates source-of-funds verification for conveyancing matters, helping Australian law firms document fund origin at settlement.
AMLify has released a source-of-funds verification workflow built specifically for conveyancing matters, letting Australian law firms capture and evidence where settlement funds come from without adding a separate compliance step to the file.
Why does source-of-funds matter in conveyancing?
Property settlement is one of the highest-risk designated services a law firm provides under the AML/CTF Act 2006. Large sums move in a single transaction, and funds frequently arrive from third parties -- a parent assisting a first-home buyer, a company director drawing on business funds, or an overseas relative. AUSTRAC expects firms to understand and document where settlement money originates, not just confirm the buyer's identity. Without a structured process, this scrutiny often gets skipped under settlement deadline pressure.
What does the new workflow do?
- Prompts for a funding source at matter opening -- fee earners record the declared source (savings, sale proceeds, gift, loan, business funds) as part of the standard intake, not a separate form
- Requests supporting documentation automatically -- bank statements, gift letters, loan agreements, or a prior sale contract, matched to the declared source
- Flags third-party payments -- where the payer differs from the named client, the workflow prompts for the relationship and applies enhanced scrutiny
- Scores unexplained gaps -- inconsistencies between declared source and supporting evidence are surfaced to the AML/CTF Compliance Officer before settlement, not after
How does this fit into an existing matter file?
The workflow sits inside AMLify's existing Legal Matter Intake Flow, so source-of-funds evidence is stored alongside CDD records and beneficial ownership mapping for the same client -- one exportable file per matter rather than documents spread across email and paper. Existing AMLify customers in this sector can turn it on without reconfiguring their programme.
Does this replace a solicitor's judgement?
No. AMLify surfaces the declared source, the supporting evidence, and any gaps between them -- the compliance officer still decides whether the explanation is satisfactory, whether to request further documentation, or whether a suspicious matter report is warranted. The tool removes the manual chasing; it doesn't remove professional judgement from the decision.
Key Takeaways
- A new source-of-funds workflow is now available inside AMLify's Legal Matter Intake Flow for conveyancing matters
- Funding source and supporting documents are captured at matter opening, not reconstructed near settlement
- Third-party payments are flagged automatically, prompting enhanced scrutiny before funds change hands
- Evidence sits in the same matter file as CDD and beneficial ownership records, ready for export
- Existing customers can enable it in Settings -- no programme reconfiguration required
Frequently Asked Questions
Q: Is source-of-funds verification a legal requirement for conveyancing lawyers?
Yes, in substance. The AML/CTF Act 2006 requires reporting entities to apply customer due diligence proportionate to risk, and AUSTRAC guidance treats understanding the source of settlement funds as a core part of that obligation for property transactions, particularly where third-party payments are involved.
Q: What counts as an acceptable source-of-funds document?
Common examples include recent bank statements showing accumulated savings, a signed gift letter from a family member, a prior sale contract for proceeds from an earlier property, or loan approval documentation. The right document depends on the declared source -- AMLify's workflow matches the request to what the client has told you.
Q: Does a third-party payment always require enhanced due diligence?
Not automatically, but it should always trigger a closer look. A parent contributing to a child's deposit is common and usually low-risk once the relationship is confirmed. Unexplained third parties, overseas payers, or funds routed through unrelated entities warrant enhanced due diligence and, in some cases, escalation to the firm's AML/CTF Compliance Officer.
Q: Can this feature be added to an existing AMLify account without extra setup?
Yes. The source-of-funds workflow is part of the existing Legal Matter Intake Flow for AMLify customers in the legal sector and can be switched on in Settings. New customers get it enabled by default.
This is general information only and not a substitute for legal advice.