As of 1st of July 2026, new anti-money laundering and counter-terrorism financing (AML/CTF) laws apply to Australian law firms such as ours, that provide certain services.
The AML/CTF regime has undergone its biggest overhaul in over two decades and has been updated to close regulatory gaps, strengthen Australia’s defences against financial crime and align the nation with international standards set by the Financial Action Task Force (FATF). You can read more about these changes in our previous articles here and here.
Why do we need more information?
As a result, even although we may already know you well, we may be required to ask for more information from you for certain transactions. The need to ask these questions is not personal – they are simply so we can comply with the new rules and responsibilities to AUSTRAC (the regulator of our anti-money laundering and counter-terrorism financing rules).
These additional information requirements do not apply to all legal work. They are only applicable to specific services such as financial transactions (managing client money or accounts), asset structuring (establishing SMSFs, trusts and companies), as well as buying/selling real estate or businesses.
What does this mean for you?
The main change will be additional information requirements with regards to the services outlined above. Moving forward, we are required to perform Customer Due Diligence (CDD) on individuals connected to the entities (the SMSF, trust or company) involved in a matter, before we can provide these services. The collection of information includes:
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- The provision and verification of identification documents (such as a passport or driver’s licence) and contact details;
- The provision of documents to confirm governance, ownership and control of business entities and structures; and
- Sharing relevant information about a business or entity.
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This is a similar process to the identity checks already being conducted by banks and other financial services businesses.
We understand that these changes and additional information requirements may create some extra administration. Our team is committed to making this process as streamlined and efficient as possible for all new and existing clients.
We appreciate your cooperation and patience as we implement these changes.