What is AML/CTF and why does it now apply to us?
IMPORTANT UPDATE — FROM 1 JULY 2026
Australia's Anti-Money Laundering and Counter Terrorism Financing obligations are expanding to cover new professionals providing designated services and non-financial sectors from 01st July 2026. Here is what you need to know regarding these changes, and what to expect from us.
THE BASICS
What is AML/CTF?
AML/CTF stands for Anti-Money Laundering and Counter-Terrorism Financing. These are federal laws designed to prevent criminals from using legitimate businesses, including legal services to conceal the origins of illegal money, or to fund terrorism.
The key regulator is AUSTRAC (the Australian Transaction Reports and Analysis Centre), the national financial intelligence agency responsible for overseeing compliance across all regulated industries.
Until now, these laws mainly covered banks and financial institutions. From 1 July 2026, they formally extend to lawyers, conveyancers, accountants, real estate professionals, and others through a reform known as "Tranche 2."
WHY IT MATTERS
Why do these laws exist?
Money laundering costs Australia billions of dollars each year. It funds organised crime, drug trafficking, human exploitation, and terrorism. Real property transactions and legal services have historically been identified as pathways through which illicit funds enter the legitimate economy.
The Tranche 2 of this AML/CTF laws create a framework so that businesses like ours can identify unusual activity, verify who we are dealing with, and when required report suspicious transactions to AUSTRAC. These measures protect clients, the legal profession, and the broader community.
This is not about distrust or invading your privacy. Completing our onboarding process is an obligation under the law that applies to all clients, regardless of the nature of your matter. It is the same process a bank uses when opening an account.
WHO IT AFFECTS
Which professions are now regulated under Tranche 2?
What does this look like in practice?
If you’ve ever opened a bank account, applied for a home loan, or set up a term deposit, you know the drill. The bank doesn't just take your word for who you are; they verify your passport, cross-check your driver’s license, and ask where your funds are coming from.
From 1 July 2026, the law expects this exact same standard of care from everyday professionals. If you work in or deal with any of the following industries, here is how your day-to-day interactions may change:
| Profession | Obligations |
|---|---|
| Lawyers | Required to verify clients and report suspicious activity when assisting with property transactions, trust creation, company management, or handling client funds. |
| Conveyancers | Must identify and verify all parties in property transfers, conduct due diligence on source of funds, and flag any unusual transaction patterns. |
| Accountants | Covered when performing real estate transactions, managing client funds, assisting with legal entity formation, or advising on business sale transactions. |
| Real estate professionals |
Agents, buyer's agents and property developers must verify clients and report suspicious activity for any property sales, purchases, or transfers.
🔍 Real Estate Industry: Click for Deep-Dive Info
The Dual Impact on Real Estate Professionals:
If you are an agent, developer, or property manager, AML/CTF applies to your business operations on two separate levels:
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| Trust & company service providers | Businesses that form, manage, or administer companies and trusts on behalf of clients are now subject to the same verification and reporting obligations. |
| Dealers in precious metals & stones | Jewelers and dealers in gold, silver, diamonds, and related products face AML/CTF obligations for cash transactions of AUD $10,000 or more. |
WHAT TO EXPECT FROM US
Our onboarding process — step by step
We have designed this to be as straightforward as possible. Here is what happens:
| 1 |
You will receive a secure link via our Law Team email address
Shortly after engaging us, you will receive an email from onboarding@lawteam.com.au containing a secure link to our online onboarding questionnaire, powered by Legl.
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2 |
You will verify your identity
As required by law, and as an obligation, we must verify who we are acting for before providing our services. You will be asked to provide one of the following current, government-issued documents to verify your identity:
Accepted ID documents: Australian driver's license · Current passport (Australian or foreign) · Medicare card (as a secondary document) For companies and trusts: ASIC or ABR records plus relevant trust deeds will also be required. 📂 View Full Entity & Funds Verification Requirements
What you may need to prepare:
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3 |
You will complete the questionnaire
Alongside your ID, the questionnaire asks for the purpose and nature of your matter and the source of funds involved. It takes most clients under 10 minutes to complete this form.
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4 |
We will review and confirm
Our team will review the information provided by you. If we need anything further, we will contact you directly. Most matters proceed without any additional steps.
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5 |
We will issue your engagement letter
Once the onboarding is complete, we will issue your engagement letter (where applicable) and proceed with your matter as normal.
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OUR OBLIGATIONS
Our terms and conditions
Our AML/CTF obligations form a part of our broader client engagement terms. Please read our full terms before proceeding; they set out how we handle your information, our compliance duties, and the basis on which we provide legal services.
Read our terms and conditions: https://www.lawteam.com.au/terms-conditions
FURTHER READING
Learn more about AML/CTF in Australia
If you would like to understand the legal framework in more depth, the following are reliable official and professional sources:
| Source | Link |
|---|---|
| Regulator | AUSTRAC — Australia's AML/CTF regulator |
| The Law | Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) |
| Tranche 2 | AUSTRAC: New industries and services to be regulated |
| Law Society | Law Council of Australia — professional guidance |
| Privacy | Office of the Australian Information Commissioner |
Have a question about your onboarding or this process?