AML/CTF Reforms 2026 Australia: Key Information for Clients

The AML/CTF (Anti-Money Laundering / Counter Terrorism Financing) regime refers to the set of rules and laws designed by the Australian federal government and AUSTRAC. The regime has been in place for some time for Tranche 1 entities such as banks, fund managers and financial planners. The regime is being introduced to ‘Tranche 2 entities’ from 1 July 2026. Tranche 2 entities include lawyers, conveyancers, real estate agents, accountants, and some other service providers.

The main aims of the regime are to prevent financial crime, to protect customers and services from criminal abuse, and to support a safe and secure financial system.

Not all clients of Eckermann Lawyers are affected as not all services offered by us are in-scope of the legislative changes.

Dependent on whether you engage us for specific regulated services such as, but not limited to, land and real estate transactions, setting up or transferring ownership of legal entities, and assisting with financing arrangements, we are required to understand and identify who we are doing business with.

For individuals, this will involve collecting at least one form of ID such as a passport or driver’s license to demonstrate who they are.

For businesses, this will involve collecting information about the ownership and management of the company, and possibly requiring documents such as company extracts so we can confirm the information provided.

For trusts, this will involve collecting information about the trust, such as the identity of those in roles related to the trust such as trustees and beneficiaries. A copy of the trust deed will also be required.

In addition, for more complex matters, we may require to understand where funds for the matter originated or where funds are to be sent once a matter is completed.

The data we collect is the minimum information required to meet our legal obligations. It is held for 7 years, stored securely and handled in strict confidence. It is used exclusively for regulatory compliance purposes.

To avoid delays in your matter, we ask you to provide the requested information as soon as possible, as we are unable to act for you prior to receiving this information.

Yes, it is possible that we will be required to collect additional information, this may include information on your source of funds or source of wealth, details about your wider circumstances such as employment status or reasons for establishing a trust or business, as well as potentially identifying any related individuals involved in a matter.