Australia’s new laws to counter money-laundering and financing of terrorism activities have implications for law firms and their clients, particularly in property and commercial transactions. The RMB Commercial Law Division explains how the new laws will work.
From July 1 2026, Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws were extended to certain services provided by lawyers, conveyancers, accountants, real estate agents and other advisers.
The reforms are intended to make it more difficult for criminals to use legitimate businesses and professional services to conceal the proceeds of crime. They also bring Australia’s AML/CTF framework more closely into line with international standards.
When do the new requirements apply?
The requirements do not apply to every legal matter. They apply when a law firm provides a ‘designated service’. For legal practices, this includes common property and commercial transactions, such as assisting with the sale or purchase of real estate or a business, handling money or other property as part of a transaction, arranging certain business financing, and establishing or restructuring companies, trusts or other legal arrangements.
What information may we need from clients?
Before we provide a designated service, we are generally required to undertake customer due diligence. This means identifying our client, verifying their identity and understanding the purpose and nature of the transaction.
For an individual, we may ask for information such as your full legal name, date of birth, residential address and identification documents. If a company, partnership or trust is involved, we may also need information about its structure, directors, trustees, shareholders and the individuals who ultimately own or control it.
Depending on the circumstances and risk profile of the matter, we may also need to ask about the source of funds being used for a transaction or, in some cases, your broader source of wealth.
Not every client will be asked for every document. The enquiries we make will depend on the type of service, the parties involved and the circumstances of the transaction.
What does this mean in practice?
These checks are now a standard part of providing many legal services. A request for further information does not mean that we suspect any wrongdoing. However, if the required information is not provided, we may be unable to commence or continue acting in the matter.
We understand that some of the information requested may be personal or sensitive. We will handle it carefully and in accordance with our legal and privacy obligations.
If you are buying or selling property or a business, establishing or restructuring a company or trust, or undertaking another transaction affected by the new AML/CTF requirements, you can contact our office to arrange a consultation.Our experienced lawyers can explain how the new requirements may apply to you and what information you may need to provide.