Anti-Money Laundering (AML) / Counter-Terrorism Financing (CTF) Compliance – New Regulatory Obligations for Legal Services (Effective 1 July 2026).
Recent reforms to Australia’s Anti Money Laundering and Counter Terrorism Financing (AML/CTF) regime mean that certain legal services will now fall within the scope of AUSTRAC regulation from 1 July 2026. These changes, known as Tranche 2, apply to law firms that provide “designated services”, such as managing client funds, assisting with real estate transactions, establishing companies and trusts, acting in fiduciary capacities, or handling transactions involving legal arrangements.
As part of our obligations, we will be required to:
- Enrol with AUSTRAC and maintain a tailored, risk based AML/CTF Program.
- Conduct appropriate customer due diligence (CDD), including verifying client identity and beneficial ownership.
- Undertake ongoing monitoring of relevant matters and trust account transactions.
- Report suspicious matters and certain prescribed transactions to AUSTRAC.
- Keep records in accordance with statutory requirements while respecting legal professional privilege.
Our firm supports these reforms as an important measure to prevent financial crime and protect the integrity of Australia’s legal and financial systems.
