Tranche 2 compliance for conveyancers: what client onboarding needs to capture
Tranche 2 compliance for conveyancers should focus on property-specific onboarding risk: who the client is, who has authority, where funds come from, whether the transaction has unusual indicators, and how review decisions are recorded.
This article is general information and is not legal advice.
Why conveyancing workflows need structure
Property transactions move quickly. That speed can create pressure to collect documents late, approve exceptions informally, or leave source-of-funds questions in email. A Tranche 2 workflow should make the required checks visible before the matter progresses too far.
Source of funds | Sale proceeds, loan, gift, overseas transfer, trust, company, or third-party payment.
Ownership | Beneficial owners and controllers for entity or trust clients.
Review outcome | Reviewer, rationale, escalation, approval, or pause decision.
Common red flags
Useful red-flag prompts include unexplained third-party funds, inconsistent client instructions, reluctance to provide evidence, unusual urgency, complex ownership, overseas funding without explanation, nominee arrangements, and transaction values that do not fit the customer profile.
Veraxa helps conveyancing and legal teams structure intake, evidence, review, and audit trail. Read Tranche 2 compliance for law firms and AML software for law firms.
Frequently asked questions
What changes for conveyancers under Tranche 2?
Certain conveyancing services may require AML/CTF workflows for client due diligence, risk review, reporting paths, and record keeping.
Why is source of funds important?
Source-of-funds review helps the firm understand whether the money used in a property transaction is consistent with the client and transaction context.
What should conveyancers implement first?
Implement matter triage, guided evidence collection, source-of-funds prompts, escalation paths, and retained approval records.