Why your advisers are asking more questions: New AML laws
From 1 July 2026, engaging an accountant or lawyer for certain transactions may involve a few extra questions and identification checks.
If your adviser asks you to provide documents like your driver’s licence, passport, or details about your business or the source of your funds, there’s no need to be concerned. These requests are part of Australia’s new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms, designed to better protect the country’s financial system from criminal activity.
Why are the AML laws changing?
Australia is introducing the biggest update to its AML laws in almost 20 years.
The goal is simple: to make it harder for criminals to use legitimate businesses to hide illegal money or finance terrorism. Until now, these laws mainly applied to banks and financial institutions. From 1 July 2026, they will also apply to certain services provided by:
- Law firms
- Accountants
- Real estate agents
This means these professionals must take additional steps to verify their clients before carrying out certain transactions.
Will every matter be affected?
No.
The new requirements only apply to specific services that involve financial transactions or business structures. These include:
- Buying or selling property
- Buying or selling a business
- Setting up companies or trusts
- Managing trust accounts or client funds
- Acting on a client’s behalf in certain financial transactions
If your business doesn’t involve these types of services, the new AML requirements may not apply.
What information might you be asked to provide?
Depending on the service, your adviser may ask for:
- A passport or driver’s licence
- Confirmation of your date of birth and residential address
- Information about your business and its beneficial owners
- The purpose of the transaction
- Details about the source of your funds or wealth
- Company ownership or nominee arrangements
- A copy of your trust deed (if applicable)
These checks are now a legal requirement—not a reflection of you or your business.
Why is your adviser asking these questions?
Professional advisers that provide designated services are now legally required to identify and verify their clients before proceeding with certain matters.
These checks help ensure businesses are complying with Australia’s AML laws and play an important role in preventing financial crime.
Will my information be safe?
Yes.
Your advisers remain committed to protecting your personal and confidential information. Any information collected during the AML process is handled securely and in accordance with privacy obligations.
How can you help avoid delays?
The easiest way to keep your matter moving is to provide any requested information as soon as possible.
Having your identification documents and supporting information ready will help your adviser complete the required checks quickly, allowing your transaction to proceed without unnecessary delays.
The Bottom Line
The new AML laws introduce additional verification requirements for certain legal, accounting and property-related services across Australia.
While you may be asked a few more questions than before, these changes are designed to protect Australia’s financial system and help prevent criminal activity.
If your adviser requests identification or additional information from 1 July 2026, it’s simply part of the new legal requirements—and providing the information promptly will help ensure your matter progresses as smoothly as possible.
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