New Anti-Money Laundering and Counter-Terrorism Financing Laws Coming into Effect from 1 July 2026. What our clients need to know
From 1 July 2026, Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws will extend to certain legal services provided by Australian law practices.
These reforms are designed to strengthen Australia’s framework for preventing money laundering, terrorism financing and other serious financial crime. As part of these changes, some law firms will have additional obligations when providing certain types of legal services.
Why are these changes being introduced?
Lawyers play an important role in protecting the integrity of Australia’s legal and financial systems. The updated AML/CTF regime recognises that certain legal services can involve significant financial transactions or structures and therefore require additional safeguards.
The reforms bring Australia closer to international standards by requiring certain professional service providers, including some legal practices, to take steps to identify and manage risks associated with financial crime.
What does this mean for clients?
For most clients, the changes will mean that our usual client identification and verification processes will become more detailed for matters covered by the new laws.
Depending on the nature of your matter, we may be required to:
• Confirm your identity and verify information provided to us;
• Obtain additional information about the nature and purpose of a transaction;
• Understand the source of funds or assets involved in certain matters;
• Conduct ongoing checks where required;
• Keep appropriate records in accordance with legal obligations.
These requirements are similar to processes many Australians already experience when dealing with banks and other regulated organisations.
Which legal services may be affected?
The AML/CTF obligations apply where a law practice provides certain “designated services”. These may include matters involving:
• Buying, selling or transferring real estate;
• Buying, selling or transferring legal entities;
• Managing or controlling client money or property in certain circumstances;
• Some financing transactions;
• Creating or restructuring companies, trusts or other legal arrangements.
Not every legal matter will be affected, and the requirements will depend on the circumstances of each client and transaction.
What information might we ask you for?
As part of these requirements, clients may be asked to provide information such as:
• Identification documents;
• Details about ownership or control structures;
• Information about the purpose of a transaction;
• Evidence relating to the source of funds or assets.
We understand that some requests may feel different from previous experiences with your solicitor. These steps are intended to ensure compliance with legal obligations and to protect both our clients and the wider community.
Protecting your privacy
We remain committed to protecting your confidential information and handling your personal information carefully.
The AML/CTF framework operates alongside existing professional obligations, including duties relating to confidentiality, privacy and legal professional privilege.
How we can help
Our team is preparing for these changes to ensure our processes are efficient and straightforward for our clients.
We encourage clients to provide requested information promptly so that we can continue to progress matters without unnecessary delays.
If you have questions about how these changes may affect your matter, please contact our office.
Your trusted legal partner, supporting you through regulatory change.
Frequently Asked Questions (FAQ)
Will the new AML/CTF requirements delay my conveyancing?
The introduction of AML/CTF obligations should not cause unnecessary delays. However, we may need to complete additional identification and verification checks before certain steps in your matter can proceed.
To help avoid delays, we recommend providing requested documents and information as soon as possible. Early completion of these checks allows us to progress your matter efficiently.
Why do you need my identification documents again?
Many clients are already familiar with providing identification documents when engaging a solicitor. Under the updated AML/CTF requirements, law practices may be required to undertake more detailed customer identification and verification processes for certain legal services.
Even if you have previously provided identification, we may need to confirm that your information remains current and meets our legal obligations.
Will all clients be affected by these changes?
Not necessarily. The AML/CTF obligations apply to certain types of legal services and transactions.
Clients involved in matters such as property transactions, certain trust or company arrangements, and transactions involving funds or assets may be required to provide additional information.
We will advise you if the requirements apply to your matter.
What additional information might I need to provide?
Depending on your matter, we may ask for information such as:
• Updated identification documents;
• Details about who owns or controls a company, trust or other entity;
• Information about the purpose of a transaction;
• Information about the source of funds or assets involved.
These requirements are designed to meet legal obligations and protect clients from financial crime risks.
Does this mean my solicitor thinks something is wrong?
No. These checks are a standard legal requirement and form part of the obligations that apply to regulated organisations, similar to processes used by banks and other financial institutions.
Completing these checks helps ensure that we can continue to provide legal services in compliance with the law.
Will my personal information remain confidential?
Yes. Protecting client confidentiality and privacy remains a fundamental obligation of our legal practice.
Information collected for AML/CTF compliance purposes will be handled securely and in accordance with applicable legal and professional obligations.
What should I do before my matter starts?
To help your matter proceed smoothly:
• Provide identification documents promptly when requested;
• Ensure documents are clear and current;
• Advise us if there are changes to your personal details or ownership structures;
• Let us know early if your matter involves companies, trusts, overseas parties, or complex financial arrangements.
Our team is here to guide you through these requirements and ensure your legal matter progresses as smoothly as possible.
Speak with our team!
At Pogson Cronin Kerr Solicitors & Notary, we have proudly served Lavington, the Albury–Wodonga region and Holbrook for more than 30 years, and we are ready to guide you through these new AML/CTF requirements with clarity and care. If you have questions about how the changes may affect your matter, or you would like to prepare the information we may need, please get in touch with our team. We will make the process as straightforward and stress-free as possible so that your matter can keep moving forward.
