• Level 5, Evandale Place, 142 Bundall Road, Bundall, QLD, Australia
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AML/CTF

Anti-money laundering and counter-terrorism financing (AML/CTF)

Introduction

From 1 July 2026, Australian law requires lawyers to undertake additional identity verification and customer due diligence when providing certain designated legal services. While the process is generally straightforward for most clients, it is more detailed than the checks we have previously been required to perform.

In practical terms, this means we may need to verify your identity, understand the ownership and control of companies or trusts involved in a matter, and obtain information about the source of funds, and in some cases the source of wealth or purpose of the transaction. These requirements are part of Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime and apply to law firms, accountants and real estate professionals.

The earlier we can complete these checks, the more smoothly your matter can proceed. This guide explains what the new requirements are, when they apply, and how you can help us meet our legal obligations efficiently.

Background

From 1 July 2026, new Australian anti-money laundering and counter-terrorism financing (AML/CTF) laws will apply to lawyers and certain other professional service providers, including accountants and real estate businesses.

These laws introduce obligations similar to those already applying to banks and financial institutions. In certain types of matters, law firms will be required to carry out customer identification and ongoing due diligence processes and in some circumstances report suspicious activity to the Australian Transaction Reports and Analysis Centre (AUSTRAC).

As part of these changes, clients may notice additional identity verification and information requests at the commencement of matters involving “designated services”.

The purpose of these laws is to reduce the risk of:
  • money laundering;
  • terrorism financing; and
  • proliferation financing (supporting the spread of weapons of mass destruction).
Importantly, legal practitioners are not required to determine that unlawful conduct has occurred. Rather, the legislation requires firms to identify and assess risk indicators and in some circumstances, submit confidential Suspicious Matter Reports (SMRs) to AUSTRAC where required by law. The law prohibits firms from notifying clients if such a report is made.

What Matters Do These Requirements Apply To?

Our AML/CTF obligations generally arise when we provide designated services under the AML/CTF legislation. Depending on the circumstances, these may include services relating to:
  • The sale or transfer of real property;
  • The sale or transfer of shares or interests in companies or trusts;
  • Holding money or property on behalf of a client (other than for legal costs and disbursements); and
  • Establishing, restructuring or administering companies and trusts, including preparing trust deeds and similar documents.
For these matters, we may be required by law to verify the identity of our clients and undertake customer due diligence. Some clients who engaged us before 1 July 2026 (“pre-commencement customers”) may not need to complete the full process unless there is a significant change in the nature of the relationship or transaction that increases AML/CTF risk.

What Will Be Required?

Individual Clients

For individuals, the process will usually involve:
  • completing a Verification of Identity (VOI) process including providing identification documents such as a passport and driver licence;
  • providing “know your client” information.
We will usually use Infotrack to monitor AML/CTF compliance for clients of our firm. QBM Lawyers have utilised Infotrack for verification of identity purposes for a number of years. Information as to data security is found here https://www.infotrack.com.au/infotrackid/security-legislation-compliance/

Companies

Where a client is a company, we may need to:
  • obtain a company search;
  • review the company constitution; and
  • review any shareholders agreement.

We are also required to identify and verify individuals who ultimately own or control the company, including beneficial owners (often those with 25% or greater ownership or effective control).

Trusts

Where a client acts as trustee of a trust, we are likely to need to review:
  • the trust deed;
  • any deeds of amendment or variation; and
  • details of the trustee, appointor, beneficiaries (where relevant), and other individuals who exercise effective control over the trust.
Identity verification may also be required for relevant individuals associated with the trust.

Source of Funds and Transaction Information

For transactions involving significant amounts of money, we may also be required to:
  • understand the source of funds;
  • identify the purpose of the transaction; and
  • assess any unusual or higher-risk aspects of the matter.

How You Can Help

You can assist us to meet these obligations and avoid delays by providing requested information and documents as early as possible. Depending on the matter, this may include:
  • Having identification documents available for review (and copying where required);
  • Giving us information to satisfy our “know your client” obligations;
  • Providing company documents, including constitutions and shareholders agreements;
  • Providing trust deeds and any amendments or variations;
  • Ensuring other relevant owners, controllers, trustees, or beneficiaries are available to complete identity verification processes; and
  • Providing information about the source of funds where requested.
Please note that in some circumstances we may be unable to act or may need to delay acting if required customer due diligence information cannot be obtained. We appreciate your cooperation as we implement these new legal requirements.
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Liability limited by a scheme approved under Professional Standards Legislation.

©2024 QBM Lawyers. All Rights Reserved

©2024 QBM Lawyers. All Rights Reserved

For over 40 years, QBM Lawyers has delivered effective legal solutions for clients across the Gold Coast.

We understand our clients’ goals, recognise the challenges they face, and provide clear, practical advice to support their commercial objectives.

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Contact info

  • +61 755 74 2600
  • PO Box 6344, Gold Coast Mail Centre, Bundall QLD 9726
  • Level 5, Evandale Place, 142 Bundall Road, Bundall, QLD, Australia

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  • Building and Construction Litigation
  • Gold Coast Building Lawyers
  • Excluded Individual/Licence Cancellation

Liability limited by a scheme approved under Professional Standards Legislation.

©2024 QBM Lawyers. All Rights Reserved

  • Building and Construction Litigation
  • Gold Coast Building Lawyers
  • Excluded Individual/Licence Cancellation

Liability limited by a scheme approved under Professional Standards Legislation.

©2024 QBM Lawyers. All Rights Reserved