Finlaysons AML/CTF Requirements

Important Changes from 1 July 2026

From 1 July 2026, Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws will extend to the legal profession.  As a result, law firms that provide certain regulated legal services will be required to undertake client due diligence and risk assessments to help prevent money laundering, terrorism financing and proliferation financing.  These requirements form part of a broader national framework designed to protect Australia’s financial and professional services sectors from criminal misuse.

What this means for clients:  In most cases, the new requirements will be straightforward and manageable. To comply with the law, we may need to:

  • verify the identity of our clients and key instructing individuals
  • understand the purpose and nature of the legal services being provided
  • identify ownership and control structures of companies, trusts and other entities
  • assess money laundering, terrorism financing and proliferation financing risks
  • maintain records required by law.

 

Information we may request: Depending on the type of client and matter, we may ask for:

  • entity information
  • details of ownership and control arrangements
  • information about the purpose of the matter or transaction
  • identification documents for relevant individuals
  • company, trust or partnership records
  • information about source of funds or source of wealth where required
  • assistance identifying individuals who exercise ownership or control within an organisation.

Any information requested will be handled securely and in accordance with our privacy obligations.

Timing considerations:  In some circumstances, AML/CTF checks must be completed before legal services can commence. Providing requested information promptly will help avoid delays in opening or progressing a matter.  If we are unable to obtain sufficient information to satisfy our legal obligations, we may be unable to act, or we may need to delay, suspend or cease acting until the required information is provided.

Existing clients: For existing clients, we will rely on information we already hold wherever possible. If your details have previously been verified and remain current, we may not need to request additional information.  Where further information is required, we will explain what is needed and provide guidance on how it can be supplied through our secure verification processes.

New clients: Where additional information is required, we will contact you directly and provide clear instructions regarding the information and documentation needed. Requests for information may be managed through secure digital verification platforms designed to make the process efficient and convenient.

How the process works:  Our AML/CTF compliance process is designed to be clear, efficient and secure:

  1. You provide relevant information and supporting documentation.
  2. We verify identity, ownership and control information using approved verification methods.
  3. If additional information is required, we will contact you.
  4. We complete the required risk assessment and compliance checks.
  5. Once all requirements have been satisfied, the matter can proceed.

 

Privacy, confidentiality and record keeping: Information collected for AML/CTF purposes is:

  • handled securely and confidentially
  • used only for client acceptance, verification and compliance purposes
  • managed in accordance with privacy laws and professional obligations
  • accessible only to authorised personnel where required.

Under Australian AML/CTF legislation, law firms are generally required to retain certain records for a minimum of seven years.

 

Frequently Asked Questions

Australian law now requires law firms to undertake certain checks and assessments to help prevent money laundering, terrorism financing and other financial crimes.

In most cases, any additional time required will be minimal. Delays are more likely where information is incomplete, unavailable or requires further verification. Providing requested information promptly can help minimise delays.

Not necessarily. Once information has been collected and verified, we will rely on that information wherever possible, unless circumstances change or additional information is required for a new matter.

We may be unable to commence or continue acting until we have obtained sufficient information to meet our legal obligations.

Yes. Many organisations choose to nominate a central legal, compliance or governance contact to coordinate AML/CTF information requests. We are happy to work with your preferred approach.

No. These requirements sit alongside our existing client acceptance and risk management processes and are intended to have minimal impact on the delivery of legal services.

Australian AML/CTF laws generally require law firms to retain certain records for at least seven years. Information is stored securely and handled in accordance with applicable privacy and confidentiality obligations.

Our commitment We understand these requirements represent a change for many clients.  Our aim is to make the process as straightforward as possible by:

  • minimising disruption
  • avoiding unnecessary duplication
  • using secure and efficient verification systems
  • providing clear guidance throughout the process
  • supporting clients to meet their obligations quickly and efficiently.

Need assistance? If you have any concerns or questions, please contact compliance@finlaysons.com.au or phone 8235 7670.  We are committed to working with you to ensure compliance with these new requirements while providing a smooth and efficient client experience.

 
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