On 1 July 2026, Australia’s expanded Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime began applying to a range of newly regulated sectors. These include legal services, accounting, real estate, conveyancing, trust and company service providers, and dealers in precious metals and stones.
Most of the commentary so far has focused on what service providers now have to do. For clients, the bigger question is how the changes affect their own dealings, whether that is buying property, setting up a company or trust, or undertaking a commercial transaction.
Expect more questions
The most noticeable change for clients is customer due diligence.
If you engage a lawyer, accountant or property professional for a regulated service, you will most likely be asked to confirm your identity, provide details of your ownership structure and where your funds are coming from. In some cases you will also be asked about the purpose of the transaction.
Firms need this information to assess money laundering, terrorism financing and proliferation financing risks – this ‘new regime’ is all about our compliance requirements and nothing to do with your integrity.
The process is similar to opening a bank account or applying for a loan. Providing extra documents is now a standard part of getting started.
Allow more time at the start
Some services cannot begin until certain checks are done.
Most firms have worked hard to keep delays to a minimum, but collecting and verifying information still takes time. If clients leave these ID checks to the last minute, it can hold up a property settlement, the setup of a new entity, or the start of a matter.
The best approach is to build these checks into the transaction timeline from the beginning, not deal with them on the day you want work to commence.
Better records and clearer structures
For many businesses, the reforms are also improving record-keeping and governance. Closer attention to beneficial ownership, control and the purpose of transactions means organisations need a clear picture of the entities they operate through. It is extra work at first, but it lowers risk over time.
Preparation is paying off
Firms with solid AML processes can onboard clients faster, handle regulatory requirements with less disruption and keep transactions on track. For clients, that means a smoother start and fewer surprises.
As the regulator’s focus moves from introducing the rules to enforcing them, AML compliance is becoming part of how organisations manage risk and protect their reputation more broadly.
What comes next
The first three months were about getting the new rules in place. The next stage will be about making compliance part of day-to-day operations and adjusting processes based on what has worked so far.
For clients, the practical message is to expect more information requests, closer scrutiny of transactions and greater transparency overall. It is more effort upfront, but clients who get their documents together early will find their matters move much more smoothly.
This article is general commentary only and does not constitute legal advice. If you would like to discuss how this issue applies to your business, please get in touch with Jeremy Goldman, Head of Commercial and Corporate at KCL Law.
Jeremy Goldman
Principal Lawyer | Head of Commercial and Corporate
KCL Law
jgoldman@kcllaw.com.au | 03 8600 8888