From 1 July 2026, significant changes to Australia’s anti-money laundering (AML) and counter-terrorism financing (CTF) laws will affect how professional advisers, including both lawyers and accountants, work with their clients.
Why these changes are being introduced
These reforms are designed to prevent criminals from using legitimate services, such as property transactions, business structures, and large financial dealings, to move illicit funds.
As part of this, lawyers and accountants will be required to carry out more detailed identity checks and better understand the source of funds involved in certain matters.
What this means for you
For clients, the most noticeable change will be a more structured onboarding process when engaging your lawyer or accountant.
You may be asked to:
- Provide additional identification documents
- Explain the source of funds being used
- Outline the purpose of a transaction or structure
- Provide supporting documentation earlier in the process
While this may feel more detailed than in the past, it is a standard requirement under the new regulations, not a reflection of any concern about a particular client.
When these rules will apply
These obligations do not apply to all work. They are generally limited to higher-risk areas, including:
- Property purchases and sales
- Establishing or restructuring companies and trusts
- Managing or transferring client funds
- Larger or more complex financial transactions
Routine services, such as basic tax compliance or general legal advice, are less likely to be impacted.
What to expect in practice
Both law firms and accounting practices will be required to maintain more detailed records and, in some cases, report suspicious activity to regulators. Legal professional privilege remains an important protection, but there is now an expectation that advisers will play an active role in safeguarding the financial system.
For most clients, the impact will be modest, typically involving a few additional steps at the start of a matter. Providing information early will help ensure transactions proceed efficiently and without delay.
If you have any concerns about these changes, please contact us on (02) 9908 9888 to discuss in more detail.