AML/CTF Reforms: What Our Clients Need to Know Before 1 July 2026
From 1 July 2026, Australia will expand its anti money laundering and counter terrorism financing (AML/CTF) laws to include many professional service providers, including accountants, lawyers, conveyancers, real estate professionals and trust and company service providers.
While these reforms introduce new legal obligations for professional advisers, they may also change the way we interact with our clients.
Our clients may be asked to provide additional information, verify their identities or answer questions about certain transactions before work can begin. These changes are designed to help prevent money laundering, terrorism financing and other financial crimes, while bringing Australia into line with international standards.
Here’s what you can expect.
Why Are These Changes Being Introduced?
The aim is to reduce the risk of criminals using legitimate businesses to move or hide the proceeds of crime. While most clients will notice only small changes, there may be additional steps involved before certain services can be provided.
You May Be Asked to Verify Your Identity
If we provide services that fall within the AML/CTF regime, we may need to verify your identity before we can act on your behalf.
Depending on your circumstances, we may ask you to provide:
- A driver’s licence or passport
- Proof of your residential address
- Company or trust documents
- Details of directors, shareholders, trustees or beneficiaries
- Other information required to confirm your identity
If you’ve opened a bank account or applied for a loan, you’ve likely completed similar identity checks before.
Existing Clients May Also Need to Update Their Information
These requirements don’t only apply to new clients.
Even if you’ve worked with us for many years, we may contact you to confirm or update the information we already hold. This helps ensure our records remain accurate and meet our legal obligations.
In many cases, the process will be straightforward, particularly if your details haven’t changed much.
Some Matters May Require Additional Information
For certain matters, particularly those involving companies, trusts, property transactions or more complex arrangements, we may need to ask additional questions before proceeding.
This could include information about:
- The purpose of a transaction
- The source of funds being used
- The ownership or control of a company or trust
- The people involved in a transaction
While these requests may be more detailed than in the past, they help us meet our legal obligations and protect the integrity of Australia’s financial system.
Services May Take a Little Longer
The new laws require some verification steps to be completed before certain services can be provided.
If identification documents or other information are outstanding, this may affect the timing of your matter or transaction.
You can help avoid delays by providing requested information as early as possible and ensuring it is accurate and up to date.
How Bates Cosgrave Is Preparing
We are reviewing our systems, processes and client onboarding procedures to ensure we are ready for the new requirements before they take effect.
Our goal is to make these changes as smooth as possible while continuing to provide the practical advice and responsive service our clients expect.
If we need additional information from you, we will explain what is required and why.
What You Can Do Now
There are a few simple steps you can take to prepare:
- Ensure your identification documents are current.
- Let us know if your company, trust or ownership structure has changed.
- Respond promptly if we request additional information.
- Contact us if you have questions about how the new requirements may apply to your circumstances.
The Bottom Line
The AML/CTF reforms will introduce some changes to the way professional advisers work with their clients. In most cases, this means providing identification documents or additional information before certain services can be delivered.
While these extra steps may be new, they are designed to protect Australia’s financial system and meet important legal requirements.
At Bates Cosgrave, we are preparing for these changes now so we can continue delivering efficient, professional service with as little disruption as possible.
If you have any questions about the new AML/CTF requirements or how they may affect your dealings with us, please contact the Bates Cosgrave team.