Important changes are coming to Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime, administered by the Australian Transaction Reports and Analysis Centre (AUSTRAC). These reforms are expected to take effect from 1 July 2026 and will extend regulatory obligations to accounting firms and other professional service providers.
Historical context – what has changed
Historically, AML/CTF obligations in Australia have primarily applied to the banking and financial services sector, including banks, financial institutions, credit providers, and remittance providers. These entities have long been required to verify client identities, monitor transactions, and report suspicious matters.
The upcoming reforms represent a significant shift, extending these obligations to professional service providers such as accountants, lawyers, and advisers. This expansion is commonly referred to as ‘Tranche 2’ of the reforms.
What is changing
Under the new laws, accounting firms will become regulated entities under AUSTRAC. We will be required to implement a formal AML/CTF compliance program. Certain services will be classified as ‘designated services’, including company and trust establishment, business structuring, corporate secretarial services, and certain advisory engagements.
As a result, we are legally required to verify client identity, identify beneficial ownership, understand the nature and purpose of engagements, conduct ongoing monitoring, and report required matters to AUSTRAC.
Why these changes are being introduced
The reforms are designed to align Australia with international anti-money laundering standards and address risks in the current system. Regulators have identified that company structures, trusts, and complex ownership arrangements can be vulnerable to misuse for money laundering, tax evasion, and financial crime.
How this affects our firm
As a regulated entity, we must implement risk-based compliance procedures and maintain appropriate documentation to meet our obligations.
What this means for you
You may notice increased information requests and additional onboarding or review steps, including identity verification, confirmation of ownership and control details, and periodic updates to your information.
Confidentiality and legal obligations
These requirements are mandatory under Australian law. In some cases, we may be required to report matters directly to AUSTRAC. All information will continue to be handled in accordance with our privacy obligations.
Our approach
We are committed to implementing these changes in a practical and efficient manner, minimising disruption, and clearly communicating what is required and why.
What you need to do
No immediate action is required. However, you may receive requests for identification documents, beneficial ownership details, and updated onboarding forms. Prompt responses will help avoid delays.
Further information
Please contact our office if you would like more information about how these reforms may impact your circumstances.
