AML/CTF Hub

Tuesday, 11 November 2025

Overview

On 10 December 2024, the Anti‑Money Laundering and Counter‑Terrorism Financing Amendment Act 2024 (Cth) became law. AUSTRAC tabled new Anti-Money Laundering and Counter-Terrorism Financing Rules in Parliament on Friday, 29 August 2025. The current rules can be viewed on the AUSTRAC website.

As part of Australia’s “Tranche 2” reforms, the legislation extends the AML/CTF regime to cover certain services considered high risk typically provided by businesses including legal practitioners, accountants, conveyancers and real estate professionals. These reforms are aimed at strengthening safeguards against financial crime and aligning with international Financial Action Task Force (FATF) standards.

From 1 July 2026, legal practices that provide one or more designated services will be captured as reporting entities and subject to AML/CTF obligations. Registration with AUSTRAC opens from 31 March 2026.

On 20 October 2025, AUSTRAC published core guidance to assist legal practitioners and other professional services understand the reforms and whether the services they deliver are captured.

The ACT Law Society is committed to supporting members through this transition. We continue to work with the Law Council of Australia and jurisdictional counterparts to support advocacy and engagement with AUSTRAC to highlight areas of uncertainty in the proposed reforms and support further guidance for the legal profession to understand the new compliance obligations.

 

Key Dates

31 March 2026
Enrolment opens with AUSTRAC for newly captured entities

1 July 2026
AML/CTF obligations commence for captured legal practitioners

 

Am I Captured?

You may be captured as a reporting entity under the AML/CTF regime if your legal practice provides one or more designated services, as defined in the Act and by AUSTRAC.

These include:

  • assisting in the planning or execution of a transaction to sell, buy or transfer real estate
  • assisting in the planning or execution of a transaction to sell, buy or transfer a body corporate or legal arrangement
  • receiving, holding, controlling or managing a person’s property to help in the planning or execution of a transaction
  • assisting in organising, planning, or executing a transaction for equity or debt financing relating to a body corporate or legal arrangement
  • selling or transferring a shelf company
  • assisting in the planning or execution of the creation or restructuring a body corporate or legal arrangement
  • acting, or arranging for someone to act on behalf of a person in particular positions in a body corporate or legal arrangement
  • providing a registered office address or principal place of business address of a body corporate or legal arrangement.

Note: There are exceptions where a service is provided pursuant to a court or tribunal order, or not in the course of carrying on a business.

If your practice engages in any of the above activities, you are likely to be required to comply with AML/CTF obligations from 1 July 2026.

 

What You Can Do Now

  • Review whether your firm provides designated services
  • Appoint a compliance officer or internal compliance lead
  • Begin drafting an AML/CTF compliance program
  • Conduct a practice risk assessment to assess current procedures and identify gaps
  • Train staff on AML/CTF basics and red flags/risk indicators
  • Monitor release of guidance materials
  • Stay informed via AUSTRAC and Law Society updates

 

What Are My Obligations?

If you are captured, your practice must:

Register via the AUSTRAC Business Portal within 28 days of starting to provide a designated service.

Nominate a staff member to oversee your practice’s AML/CTF compliance

Create a written, risk-based compliance program that outlines

  • Customer due diligence procedures
  • Risk assessments
  • Suspicious matter reporting processes
  • Internal training and review systems

See AUSTRAC guidance on AML/CTF compliance programs.

You must:

  • Identify and verify your client’s identity before providing services
  • Conduct Enhanced CDD in higher-risk situations
  • Maintain ongoing due diligence

AUSTRAC provides CDD guidance here.

Implement systems to:

  • Monitor transactions for suspicious or unusual activity
  • Review existing client relationships and transactions periodically

Submit via AUSTRAC’s reporting portal:

  • Within 3 business days of forming a reasonable suspicion of money laundering
  • Within 24 hours if related to terrorism financing

More information: Suspicious matter reporting.

Keep identity verification and transaction records for 7 years.

See: Record-keeping obligations.

Ensure relevant staff are trained in:

  • Identifying risks and red flags
  • Internal firm procedures
  • Legal obligations under the AML/CTF regime

Find AUSTRAC training here and monitor ACT Law Society updates for AML/CTF training opportunities.

 

 

Legal Professional Privilege (LPP)

The AML/CTF regime does not override legal professional privilege (LPP), but it introduces practical tensions.

AUSTRAC has now published information about the interaction with the AML/CTF regime and obligations to submit a LPP claim form in certain circumstances.

AUSTRAC’s LPP guidance can be found here.

You should consider the following:

  • Clearly document when you are providing legal vs non-legal services
  • Avoid “tipping off” clients if a report is being considered
  • If unsure, seek legal advice about how to manage privilege in the context of specific cases and reporting obligations.

 

Privacy obligations

The Office of the Australian Information Commissioner (OAIC) has published information on the interaction of the AML regime with privacy obligations.

Importantly, a business that has an annual turnover of less than $3 million who is a reporting entity under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), or an authorised agent of a reporting entity, will also need to comply with the Australian Privacy Principles (APPs) in respect of their personal information handling activities in relation to the AML/CTF Act, regulations or the Anti-Money Laundering and Counter-Terrorism Financing Rules. This is despite the fact the business would generally have been excluded under the turnover threshold from privacy when handling personal information.

The Law Council of Australia, together with all constituent bodies including the ACT Law Society, is continuing to advocate for clarity around these obligations and for transitional support, particularly for small legal practices impacted by these requirements.

 

Red Flags and Risk Indicators

Practitioners should be alert to signs of potential money laundering or terrorism financing including:

  • Client reluctance to provide identification or source of funds
  • Use of complex structures without a clear business purpose
  • Use of third-party accounts or unexplained payments
  • Transactions that don’t match client profile
  • Urgent requests or pressure to bypass standards procedures
  • Unusual use of the trust account

AUSTRAC has provided further risk indicators for legal professionals.

The Singapore Ministry of Law has produced a useful guide about potential risk indicators specifically related to Terrorism Financing – firms may find this a useful reference tool when considering their own compliance practices.

 

FAQs

No. Only lawyers or law firms that provide one or more designated services will be captured. Litigation-only or advisory firms may not be affected.

See the full list on AUSTRAC’s AML/CTF Reforms – Designated Services.

Yes. Even one instance of providing a designated service requires you to enrol with AUSTRAC within 28 days.

Yes, if they provide designated services. Obligations apply regardless of practice size.

Yes. LPP is preserved. AUSTRAC will provide a form to assert privilege where relevant.

Yes. AUSTRAC has issued core guidance on the reforms and has made training available via its website.

The ACT Law Society will also continue to provide further updates, guidance and CPD opportunities.

 

 

We will continue to provide updates and training opportunities as more guidance becomes available from AUSTRAC and government. Please contact memberconnect@actlawsociety.asn.au for more information or to provide feedback or suggestions for the AML/CTF Hub. 

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