New Anti-Money Laundering and Counter-Terrorism Financing Laws You Need to Know About When Getting Professional Services
From 1 July 2026, new Anti-Money Laundering and Counter-Terrorism Financing obligations will apply to newly regulated sectors in Australia, including legal professionals, accountants, real estate agents, trust and company service providers, and dealers in precious metals and stones.
These laws are commonly known as AML/CTF laws.
The purpose of AML/CTF compliance is to help detect, prevent and report money laundering and terrorism financing. AUSTRAC also refers to protecting businesses from criminal exploitation through money laundering, terrorism financing and proliferation financing.
What does this mean for clients?
When you ask us to provide certain professional services, we may need to ask you more questions and request more information than before.
This does not mean that we do not trust you.
It means we are required to follow AML/CTF compliance obligations.
What information may we ask for?
Depending on the service and the level of risk involved, we may need to ask for information to help us complete customer due diligence.
This may include:
- information to check and verify your identity;
- Know Your Customer information;
- further information if we need to be satisfied about your identity;
- further information if there is inconsistent information;
- information about the source of funds or source of wealth where enhanced customer due diligence is required.
The information required may be different depending on the type of client and the type of matter.
Why do we need to ask these questions?
Under AML/CTF compliance requirements, reporting entities must assess and manage money laundering and terrorism financing risks.
This includes having policies, procedures, systems and controls to manage those risks.
Customer due diligence is an important part of this process. It may include checking and verifying customer identity, assessing customer risk, and applying enhanced customer due diligence where required.
Will every client be asked the same questions?
No.
AML/CTF compliance is risk-based. This means the questions and documents required may depend on the nature of the service, the type of client and the risk assessment.
Some matters may require standard identity checks. Other matters may require additional information.
Can we provide services before completing these checks?
AUSTRAC guidance states that a reporting entity must develop an effective AML/CTF program before providing a designated service.
In practice, this means we may need to complete certain AML/CTF checks before we can provide particular services.
What happens if more information is required?
If more information is required, we will let you know what is needed.
Please provide requested information as early as possible. This may help avoid delays in your matter.
How will your information be handled?
AML/CTF programs include record keeping obligations. This means certain information and records must be kept to meet AML/CTF obligations.
We will handle your information respectfully and in accordance with our professional obligations.
Our message to clients
From 1 July 2026, clients should expect that professional service providers may ask more questions as part of AML/CTF compliance.
These questions are part of legal compliance. They are not personal.
