Since 1 July 2026 there have been new changes to Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws. These changes sought to cover the gaps in legislation which dealt with major transactions such as property purchases, trust structures and business dealings, as these professional services were being exploited to facilitate money laundering.
Prior to the changes, Australia’s AML/CTF laws only regulated banks, financial institutions, casinos and remittance providers. As a result of the changes brought by the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth), other professional services provided by lawyers, accountants, conveyancers and real estate agents are now regulated under the legislation.
Which Professions Are Now Regulated?
- Lawyers and legal service providers,
- Real estate agents, buyer’s agents and property developers
- Accountants and tax agents
- Conveyancers
- Trust and company service providers
- Dealers in precious metals, stones and products
Which Services Are Now Regulated?
The new changes apply to services which are deemed “designated services”. “Designated Services” are services that help a client advance a specific transaction. Some examples are:
- Buying, selling or transferring real estate
- Buying or selling a business
- Forming, restructuring or winding up companies, trusts or partnerships
- Holding or transferring client funds in connection with a transaction,
- Acting as a nominee director, shareholder or trustee
To determine whether a service provided by a business is regulated, AUSTRAC provides a “check if you may be regulated” tool on the website.
Compliance Requirements For Regulated Businesses
Enrolment With AUSTRAC
The first compliance requirement was to register the business through AUSTRAC online. Enrolment opened on 31 March 2026 and the deadline was 29 July 2026.
Building An AML/CTF program
The second step is to build an AML/CTF program before the business starts providing designated services. An AML/CTF program has two elements: a risk assessment identifying the money laundering and terrorism financing risks a businesses faces, and AML/CTF policies setting out procedures, systems and controls to manage those risks. This must be approved by senior management, and an AML/CTF compliance officer must be appointed. The AUSTRAC website provides program starter kits for small businesses to assist in building an AML/CTF program.
Conducting Customer Due Diligence
The third step is to conduct initial due diligence, ongoing due diligence and enhanced due diligence where the risk is high. What is required is dependent on the AML/CTF program of that specific business. Generally, individuals provide a passport and driver’s licence whereas companies provide an ASIC extract and director identification.
Reporting to AUSTRAC
The fourth step is to submit reports to AUSTRAC. Reports must be submitted to AUSTRAC for certain situations:
- Suspicious matter reports – within 24 hours if related to terrorism financing, or within 3 business days for all other matters
- Threshold transaction reports – when a transaction involves physical currency of A$10,000 or more, within 10 business days
- Annual compliance reports – AUSTRAC will contact you when it’s time to submit
It is prohibited to advise a client that a suspicious matter report has been made. This is called the “tipping-off” rule and it is standard across all legal, accounting and financial services in Australia.
Keeping Records
The fifth step is to ensure that records are maintained. Records must be maintained of the business’ AML/CTF program, customer due diligence, transactions and staff training. The records must be kept for seven years.
Consequences Of Non-Compliance
Failure to comply may result in enforcement action such as civil penalty orders, infringement notices and injunctions. AUSTRAC also maintains a public register of its enforcement actions against businesses. Non-compliance may therefore also result in reputational damage.
What This Means For Clients
A new client who engages a lawyer, accountant, conveyancer or real estate agent for a service deemed to be a “designated service” should expect to:
- Provide photo identification – typically a passport and driver’s licence, often verified digitally
- Answer questions about the ownership and control structure of any company, trust or partnership involved
- Confirm the nature and purpose of the transaction
- In some cases, confirm the source of funds
If a business cannot identify the source of funds or the identity of the new client, a business may cease to provide services.
Author: Alyanna Abadilla