New Anti-Money Laundering (AML/CTF) Reforms and What They Mean for Our Clients

From 1 July 2026, Australian law firms are now subject to the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime, which brings the legal profession into line with obligations that have applied to banks, financial institutions and other regulated sectors for many years.

These reforms are administered by AUSTRAC and are designed to strengthen Australia's ability to detect and prevent money laundering, terrorism financing and other serious financial crimes.

You can read more about the changes on the AUSTRAC website here, and in the links at the bottom of this page.

What are the AML/CTF reforms?

From 1 July 2026, Australian law firms will become subject to the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime, which has applied to banks, financial institutions and other regulated sectors for many years. 

The reforms are administered by AUSTRAC and are designed to strengthen Australia's ability to detect and prevent money laundering, terrorism financing and other serious financial crimes.

Do the AML/CTF requirements apply to all legal services?

No. The legislation applies to specific activities known as designated services, rather than all legal work. 

Whether AML/CTF requirements apply depends on the nature of the services being provided. Examples may include certain property, corporate, trust, financing and transactional matters. If the requirements apply to your matter, we will let you know and explain what information is required.

What information do we need from you?

Depending on the circumstances, we may ask you to provide:  

• Identification documents; 
• Contact and address details; 
• Information about the purpose and nature of a transaction; 
• Information about the source of funds involved in a transaction; 
• Information about companies, trusts, SMSFs or other entities involved in a matter; and 
• Information about individuals who ultimately own or control an entity.

We will only request information that is reasonably necessary to comply with the AML/CTF legislation and provide legal services to you.

Why do you need information about companies, trusts and beneficial owners?

The AML/CTF regime requires reporting entities to understand who ultimately owns or controls a company, trust or other legal structure. 

Where an entity is involved in a matter, we may need to identify and verify the individuals who ultimately own, control or manage that entity. This helps us understand who we are acting for and meet our regulatory obligations.

What happens if I do not provide the requested information?

In some circumstances, the AML/CTF legislation may prevent us from commencing or continuing certain legal services until required verification and due diligence requirements have been completed. 

If we require additional information, we will explain what is needed, why it is required and how it can be provided securely. Our team will work with you to make the process as straightforward as possible.

How can Aitken Partners help with AML/CTF compliance?

If AML/CTF obligations apply to your matter, Aitken Partners will explain the requirements and guide you through the process. Where additional information is needed, we will explain what is required, why it is needed and how it can be provided securely. 

Information collected is handled in accordance with professional duties, privacy obligations and confidentiality requirements. If you provide legal services to clients and need to comply with the new regulations, we can also assist you with this.

Protecting Your Information

We recognise that the information requested may be personal or commercially sensitive. Any information collected will be handled securely and in accordance with our professional duties, privacy obligations and confidentiality requirements.

We will only request information that is reasonably necessary to comply with the AML/CTF legislation and provide legal services to you. AUSTRAC has provided templated documents as examples for the collection of data and the forms we will send are based on these.

For more information, visit:

AUSTRAC – About the AML/CTF Reforms
https://www.austrac.gov.au/industry-and-business/about-amlctf-reforms/about-reforms

AUSTRAC – Professional Designated Services
https://www.austrac.gov.au/new-austrac/designated-services-newly-regulated-entities/professional-designated-services

AUSTRAC – Customer Due Diligence
https://www.austrac.gov.au/industry-and-business/obligations-and-guidance/your-amlctf-program/customer-due-diligence

Department of Home Affairs – Changes to Customer Due Diligence
https://www.homeaffairs.gov.au/criminal-justice/Pages/changes-to-customer-due-diligence.aspx

These requirements apply to all Australian law firms providing designated services. While they may involve us requesting some additional information from our clients, these checks play an important role in protecting the integrity of Australia’s financial system.

We appreciate your understanding and cooperation as we meet our legal obligations and continue to support you with your legal needs.

If you have any questions about how these changes may affect you or your matter, please contact your Aitken Partners representative.