AML/CTF changes are coming – What this means for our clients
From 1 July 2026, new anti-money laundering and counter-terrorism financing (AML/CTF) laws will apply to law firms providing certain services in Australia.
Under these laws, we may be required to collect and verify certain client information. This will include identity information and details about business structures, ownership and control. In some cases it will include more detailed information, including about source of wealth and source of funds.
We are committed to making this compulsory process as simple and seamless as possible for our clients.
This update provides a brief overview of what’s changing, what it means for our clients, and how we will support you through the process.
Why are these changes happening?
Australia is reforming its AML/CTF laws to align with international standards.
As part of these changes, some professions (lawyers, accountants and real estate agents) will be brought into the regulatory framework for the first time.
From 1 July, law firms will need to:
- collect and verify client identity information;
- understand who they are acting for;
- carry out due diligence on clients and matters; and
- comply with various reporting obligations;
- keep certain records.
What will change for you as a client?
The main change will be a new compulsory onboarding process, which will include collection and verification of documents.
This may involve:
- providing and verifying identification documents (such as a passport or driver’s licence);
- verifying contact details;
- sharing information about a business or entity; and
- providing documents to confirm governance, ownership and control of business entities and structures.
For many of our clients, this will feel similar to processes already used by banks other financial services businesses.
Our approach at DMAW Lawyers
We understand the importance of efficiency and clarity. Our focus is on ensuring these new requirements are handled in a way that is:
- Simple – clear guidance and minimal duplication
- Consistent – a familiar experience each time
- Efficient – using technology to streamline the process where possible
- Respectful – maintaining confidentiality and handling information securely
Our aim is to provide a transparent and efficient experience for all clients, whether new or existing. We are already preparing our systems and processes so that implementation is as easy as possible.
Frequently asked questions (FAQs)
No. There is no action to be taken at this stage. We will provide guidance in the lead up to these changes coming into effect.
The new laws require law firms to collect and verify certain client information. This is becoming a standard part of engaging professional service providers and helps ensure matters can progress smoothly.
These requirements apply to all client relationships, including existing ones.
Where we are acting for a company, trust or other structure, we will have to request documentation to confirm ownership, governance, and control. We will also have to collect information about people acting on behalf of the entity.
All information will continue to be handled in accordance with our strict confidentiality requirements and applicable privacy laws.
Yes.
For some matters, including where complex structures or other higher risk elements are involved, we will need to understand (and collect documentation to confirm) where funds are coming from and the source of wealth of our client.
Potentially, but we will work hard to minimise any impact. By building these steps into our processes early, we expect matters to progress smoothly with minimal disruption.
In many cases, no. Once we have collected and verified required information, it can generally be used for future matters. From time to time, we will need to update or obtain further details, particularly if circumstances change or additional information is required for a specific matter.
Clients can contact us on +61 8 8210 2222 with any queries. Alternatively, please feel free to get in touch with your usual DMAW Lawyers contact directly to discuss.