AML/CTF - What this means for you
Australia's anti-money laundering and counter-terrorism financing (AML/CTF) regime is undergoing significant reform. From 1 July 2026, a new wave of “Tranche 2” AML/CTF laws will apply to law firms and other professional services. These laws are designed to modernise AML standards, address money laundering risks in professional sectors, and bring Australia into line with international standards set by the Financial Action Task Force (FATF)
What We Will Need from Clients
In order to fulfil our AML/CTF duties, we will be required to:
Verify the identity of each client (individual or business entity).
Identify and verify the beneficial owners for corporate or trust clients (individuals who ultimately own or control, directly or indirectly, 25% or more of an entity, or who otherwise exercise control).
Determine if clients, beneficial owners, or relevant persons are politically exposed persons (PEPs) or subject to targeted financial sanctions. We may ask about your position, source of wealth, residence, and/or links to high-risk jurisdictions.
Collect information about the purpose and intended nature of the business relationship or transaction.
Request updated information if there are changes to the nature or structure of your entity, the transactions involved, or if ongoing monitoring identifies changes in risk.
Make further enquiries if, at any stage, your circumstances, behavioural patterns, or transactions present higher risk indicators or trigger enhanced due diligence under our AML/CTF program.
Confirm sources of funds or wealth for certain transactions or clients, particularly for complex or large value matters.
How This Affects You
These new requirements mean:
Before we can act for you on regulated transactions, you (and if applicable, controlling or beneficial owners) will need to supply satisfactory identification documents and information.
For company or trust clients, additional documentation will usually be required to identify underlying individuals.
There may be ongoing requests for updated information during the course of a matter or on new instructions, in line with our ongoing monitoring obligations.