New AML/CTF Laws from 1 July 2026: What Clients Need to Know

From 1 July 2026, significant changes to Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws will affect the way law firms deliver certain legal services.

As part of these reforms, law firms providing specific transaction-related services will be required to carry out additional identity verification and client due diligence processes.

For clients, this may mean being asked to provide identification documents, information about the source of funds involved in a transaction, or details about company ownership structures before work can commence on certain matters.

While these requirements may be new for some clients, they form part of a broader national effort to combat financial crime and protect the integrity of Australia’s financial system.

Why are the laws changing?

The reforms expand Australia’s AML/CTF regime to include certain professional service providers, including lawyers, accountants and real estate professionals.

The aim is to reduce the risk of criminals using legitimate businesses and advisers to move, conceal or legitimise funds connected to illegal activity such as fraud, drug trafficking, cybercrime, human exploitation and terrorism financing.

The laws are regulated by the Australian Transaction Reports and Analysis Centre (AUSTRAC), Australia’s financial intelligence agency.

What legal services are affected?

The new obligations will apply when law firms provide particular “designated services” connected to financial or transactional work.

Examples may include:

• Buying or selling property
• Buying or selling a business
• Establishing companies, trusts or partnerships
• Managing client money through a trust account
• Assisting with corporate restructures or certain financial transactions

Not all legal matters will be affected. For example, many advisory, litigation and family law matters may fall outside the AML/CTF regime unless they involve designated services.

What information may clients need to provide?

Where AML/CTF obligations apply, clients may be asked to complete additional verification steps before work can proceed.

Depending on the type of client and transaction, this may include:

• Providing photo identification
• Confirming residential or business addresses
• Explaining the nature and purpose of the transaction
• Providing information about the source of funds
• Identifying directors, trustees, beneficial owners or other controlling individuals
• Completing client due diligence or verification forms

For companies, trusts or other entities, additional documentation may also be required to verify ownership and control structures.

Why does my lawyer need this information?

Law firms covered by the AML/CTF regime will have legal obligations to:

• Verify client identities
• Assess and manage financial crime risks
• Maintain records relating to certain transactions
• Monitor matters for suspicious activity
• Comply with reporting obligations under Australian law

These requirements are mandatory and apply across the legal profession for affected services.

While the additional steps may slightly change the onboarding process for some matters, they are designed to protect clients, businesses and the broader community from financial crime risks.

What clients can expect

Our firm is committed to making these processes as straightforward and efficient as possible.

If your matter falls within the scope of the AML/CTF regime, our team will guide you through any required verification steps and explain what information is needed and why.

Supporting clients through the transition

We understand that providing additional information may feel unfamiliar, particularly for long-standing clients. However, these reforms represent a significant national regulatory change that will affect many industries involved in financial and transactional services.

Our priority is to ensure that our clients continue to receive timely, practical and seamless legal support while meeting the new regulatory requirements.

If you have any questions about the upcoming AML/CTF changes or the information we may request, please contact our team. We are happy to assist and explain the process.

Privacy and security of your information

Any personal or corporate information collected as part of AML/CTF compliance processes will be handled securely and in accordance with our privacy obligations.

Access to this information will be restricted to authorised personnel who require it to meet our legal and regulatory obligations.

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