Changes to Australia’s anti-money laundering and counter-terrorism financing laws will soon affect how law firms and other professionals work with their clients. From 1 July 2026, new requirements will apply to certain legal services, which means some clients will be asked to provide more information than they may have in the past. Knowing what to expect can help you prepare and avoid unnecessary delays in your matter.

What Are the New Anti-Money Laundering Laws?

From 1 July 2026, new anti-money laundering and counter-terrorism financing laws will apply to lawyers and other professionals in Australia when they provide certain “designated services”. These laws are designed to help prevent legal, property, business and financial services from being used to hide the proceeds of crime or fund terrorism.

For clients, this means law firms will need to collect and verify more information before, and sometimes during, a matter. These checks will be compulsory where the legal work falls within the new laws.

Which Legal Services Are Affected?

The laws will not apply to every legal service, but a number of service areas are captured. These include assisting with buying or selling real estate or businesses, managing client money or assets, and setting up or managing companies or trusts, among others.

What Information Might You Be Asked to Provide?

Clients may be asked to provide information such as:

• full legal name, date of birth and residential address;
• photo identification, such as a passport or driver licence;
• proof of address, such as a utility bill or bank statement;
• details about the source of funds being used in a transaction;
• details about the source of wealth, for example how money or assets were obtained;
• information about companies, trusts or partnerships involved in the matter;
• names and identification details of directors, shareholders, trustees, beneficiaries or other controlling persons;
• details of any person acting on behalf of the client; and
• information about the purpose and nature of the transaction.

For example, a client buying a property may need to explain where the deposit and purchase funds came from. A company client may need to identify its directors, shareholders and any person who ultimately controls the company. A trust may need to provide the trust deed and details of trustees, beneficiaries and appointors.

Keeping Information Up to Date

Lawyers may also need to update client information over time, particularly for ongoing matters or where circumstances change. If required information is not provided, a lawyer may be unable to start or continue providing the designated service.

How These Rules Affect Confidentiality and Privilege

These obligations are separate from normal legal advice and confidentiality duties. Legal professional privilege will continue to apply where applicable. However, compliance with compulsory identification and verification requirements will become a standard part of many legal and professional transactions.

What This Means for You

Clients can expect these checks to become a normal part of dealing with lawyers, accountants, real estate professionals and other service providers covered by the new regime. Preparing identification documents and information about your funds early can help avoid delays.

Speak With Our Experienced Team

If you have a matter coming up that may be affected by these changes, our experienced team can explain what to expect and help you prepare. Get in touch to discuss your situation.