Anti-Money Laundering and Counter-Terrorism Financing Requirements

Effective Date: June 2026

From 1 July 2026, Australian legal practices that provide certain designated services will be subject to obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth), as amended by the Tranche 2 reforms ("AML/CTF").

These reforms extend Australia's anti-money laundering and counter-terrorism financing regime to a broader range of professional services, including certain legal services. The purpose of the regime is to help prevent the misuse of legal, financial and business services for money laundering, terrorism financing and other serious financial crime.

Legal Services subject to AML/CTF laws

The AML/CTF laws apply where a legal practice provides certain designated services, that have been identified as presenting a higher AML/CTF risk, including legal services connected with:

  • buying, selling or transferring real estate or businesses,

  • managing client money or assets,

  • creating or restructuring companies, trusts or other legal arrangements, and

  • certain transactions involving legal entities, financing or asset transfers.

What This Means for Clients

To comply with these obligations, Connected Legal + Commercial may be required to undertake client due diligence before, and during, the provision of certain legal services. This may include:

  1. Verifying client identity
    The firm may request documents or information to confirm the identity of individual clients, company clients, trusts, partnerships, associations or other legal structures.

  2. Identifying beneficial owners and controllers
    Where a client is an entity or legal arrangement, the firm may be required to identify and verify the individuals who ultimately own or control that client.

  3. Understanding the nature and purpose of the matter
    The firm may ask questions about the purpose of the engagement, the nature of the proposed transaction, and the source of funds or source of wealth where required.

  4. Ongoing monitoring
    The firm may be required to review and update client information during the course of a matter, particularly where there are changes in instructions, transaction details, ownership or control.

  5. Record-keeping and reporting obligations
    The firm is required to retain certain records and may have reporting obligations to AUSTRAC in circumstances required by law.

Client Cooperation

Clients may be asked to provide identification documents, company extracts, trust deeds, ownership details, transaction information or other supporting material. These requests are made to enable the firm to meet its legal obligations.

If Client Due Diligence Requirements are not met

If required information is not provided, or if the firm is unable to complete required checks, the firm may be unable to commence or continue acting in a matter.

Privacy and Confidentiality

Information collected for AML/CTF compliance purposes will be handled in accordance with applicable privacy, confidentiality and professional conduct obligations. The firm will only collect, use, disclose and retain information as permitted or required by law. For more information, please refer to our Privacy Policy.

Further Information

Further information about Australia's AML/CTF regime is available from AUSTRAC at: www.austrac.gov.au

For questions about the firm's client identification and verification procedures, please contact:

Connected Legal + Commercial
Level 5, The Brewery
5 Central Park Avenue
Chippendale NSW 2008
Telephone: 1300 804 195
Email:info@connectedlegal.com