AML/CTF reforms explained: What they mean for you from 1 July 2026

Understanding Australia's new Anti-Money Laundering (AML/CTF) Laws: What clients need to know

If you've recently engaged a lawyer, real estate agent, conveyancer or accountant or you're about to; you may have heard about some changes coming to how professional service firms operate in Australia.

From 1 July 2026, new anti-money laundering and counter-terrorism financing (AML/CTF) laws will start applying to law firms, conveyancers, accountants, real estate professionals and several other industries.

In this article, we'll break down what these changes mean, why they're happening, and most importantly what they mean for you as a client.

What is AML/CTF?

AML/CTF stands for:

• Anti-Money Laundering (AML)

• Counter-Terrorism Financing (CTF)

Why are these laws changing?

AUSTRAC (the Australian Transaction Reports and Analysis Centre) is Australia's financial intelligence agency, responsible for detecting, deterring and disrupting criminal abuse of the financial system, including money laundering and terrorism financing.

According to AUSTRAC, the reforms are designed to “close the gaps in our financial system” and reduce opportunities for organised crime, fraud, money laundering and terrorism financing within Australia.

Historically, banks and financial institutions have carried most of the responsibility for detecting and reporting suspicious financial activity. But criminals don't only interact with banks -they also rely on lawyers, conveyancers, accountants and real estate agents to help structure transactions, transfer property, set up companies and trusts, and move money around. These professions are sometimes referred to internationally as "Designated Non-Financial Businesses and Professions," and they've long been recognised as an area where money laundering risk can go undetected.

On 29 November 2024, the Australian Parliament passed the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024, which simplifies and modernises Australia's existing AML/CTF laws, including the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. The goal is to strengthen Australia's defences against organised crime and to bring our laws in line with international standards set by the Financial Action Task Force (FATF), the global body that sets the benchmark for financial crime prevention.

These changes aren't about treating clients with suspicion. They're about making sure the whole system, including the professionals you rely on, is doing its part to keep Australia's economy safe and trustworthy.

Who do these new laws apply to?

This is often called the "Tranche 2" reform, because it's the second wave of industries being brought into the AML/CTF regime (the first wave being banks and financial institutions back in 2006).

From 1 July 2026, the reforms apply to a range of professional services, including:

• Law firms and legal practitioners

• Conveyancers

• Accountants

• Real estate agents and property professionals

• Trust and company service providers.

  
  

Importantly, these laws don't regulate an entire profession just because of the title on the door. They apply to specific activities known as "designated services" that a business provides.

So a law firm, for example, isn't automatically covered for everything it does; it's covered for the particular services it offers that fall within the AML/CTF framework, such as managing client funds in a transaction, assisting with property settlements, or acting on behalf of companies and trusts.

What does this mean for me as a client?

Not a huge amount changes about how we work with you day to day, but you may notice a few extra steps at the start of certain matters. This may include our obligations to:

• Verify your identity.

• Confirm ownership structures for companies or trusts.

• Understand the source of funds in some transactions.

• Maintain secure records and compliance processes.

• Conduct ongoing due diligence in higher-risk matters.

We know this might feel like a change from what you've experienced with us in the past, and for some clients, it may feel like an unfamiliar extra step. Please know that this isn't about you, your matter, or any assumption on our part and is simply part of how every firm offering these services across Australia is now required to operate.

Will this slow down my matter?

Our aim is to make this process as smooth, secure and transparent as possible and in many cases, getting these details sorted early actually helps things move faster, not slower.

If you're buying or selling property, for example, having your identification and source-of-funds information ready from the outset means there's less chance of a rush or hold-up closer to settlement. The same goes for company or trust matters sorting out the details upfront means we can get on with the substantive legal work without interruptions later.

How your information is protected

Our firm uses InfoTrack, a trusted Australian provider specialising in secure identity verification, compliance technology and digital recordkeeping for the legal industry.

InfoTrack’s systems are widely used by law firms and conveyancing practices across Australia and are designed to securely handle sensitive personal information through encrypted and compliant digital processes.

Using a specialist provider helps us:

• Meet our legal obligations.

• Protect client information.

• Reduce manual paperwork.

• Improve the speed and efficiency of identity verification where possible.

  
  

Importantly, all information collected is handled in accordance with applicable privacy obligations and professional confidentiality requirements.

We are here to help

These changes are part of a national shift, not something specific to our firm, and not a reflection of anything about you or your matter. We understand that these changes may raise questions, particularly for clients who are engaging a lawyer for a personal matter, family transaction or first-time property purchase.

Our team is committed to making the process as clear and straightforward as possible. If you are unsure why certain information is being requested, we encourage you to speak with us directly.

We appreciate your understanding and cooperation as these new national requirements come into effect.