AML/CTF laws – why we need to ask for your ID
AML/CTF laws – why we need to ask for your ID
What are AML/CTF laws and why do they matter?
From 1 July 2026, all law firms in Australia must comply with anti-money laundering and counter-terrorism financing (AML/CTF) laws. The changes mean that we are now legally required to check and verify the identity of clients and obtain other required information before providing legal services.
These laws are designed to help stop crime and protect the community by making it harder for criminals to move illegal money through the financial system.
As a result of these legal obligations, there are some changes in how we onboard clients, deal with advisers on behalf of clients and provide our legal services.
What information is collected?
When you work with us, you may be asked to:
- verify your identity before using our services
- explain how our services will be used
- provide details about any company, trust or other entity involved in your matter, including who owns or controls it
- keep your details up to date throughout our relationship with you
- provide additional information where required by law.
Where the service involves an entity you have an interest in, we are also required to verify the identity of all other individuals involved in that entity (e.g. other directors and shareholders, other trustees and appointors, and other beneficiaries).
We may also collect information required from other sources, such as via searches of records of government agencies and from other reporting entities.
How is information handled?
We only collect information in accordance with applicable AML/CTF laws and privacy legislation, and ensure that your information is used and handled in accordance with our professional and statutory obligations. In rare cases, we may be prohibited from disclosing to you that your information has been required by law to be shared with a law enforcement body such as AUSTRAC.
To assist us with collecting information for AML/CTF purposes and undertaking required customer due diligence, we use a technology platform called First AML.
When you engage us, you may receive an email from us asking you to verify your identity using the First AML platform. You can also expect our team to ask you to provide additional information before we can provide legal services to you.
Full details on how we collect, use and handle information are outlined in our privacy policy.
Why are these changes necessary?
From 1 July 2026, these checks are a standard legal requirement for all law firms in Australia.
The changes help:
- protect you and our community from financial crime
- keep Australia’s financial system safe and secure
- bring Australia in line with global standards.
We appreciate that these new steps create additional administration for everyone involved. CGW will ensure the process runs as smoothly and efficiently as possible, and we will continue to refine the process over time.
For further information on AML/CTF requirements, please view the AUSTRAC guidance on why you might be asked for identification details.
Is your business compliant with AML/CTF changes?
Law firms are not the only types of businesses subject to the latest reforms to Australia’s anti-money laundering and counter-terrorism financing regime. From 1 July 2026, a range of other organisations come within the scope of the legislation for the first time. In addition, existing reporting entities under the regime also face updated compliance requirements that need to be managed from 2026 onwards.
We have prepared a guide for clients whose businesses may be subject to the Tranche 2 AML/CTF reforms.
This guide includes an overview of the AML/CTF reforms, services Cooper Grace Ward can provide to assist you with the changes, and links to useful resources including AUSTRAC’s guidance on the latest reforms.
Additional information for accountants and advisers
The latest reforms to Australia’s anti-money laundering and counter-terrorism financing regime apply to many services provided by accountants and other professional advisers.
This is a significant shift for the profession and it is important to know that these requirements are not optional.
Every accounting firm in Australia must follow the same rules, regardless of size or location.
Read more in our AML/CTF resource page for accountants and advisers.
FAQs
Find answers to our most frequently asked questions about AML/CTF requirements and client identification processes.
I am a long term client. Why do I need to complete this process now?
The AML/CTF laws apply to all law firms from 1 July 2026 and mean that we are required to obtain and maintain information as required in relation to both existing and new clients. Even if your details haven’t changed, we need to review and monitor them periodically to meet the legislated requirements, where we have an ongoing business relationship.
Can you still act for me if I don’t provide this information?
If we do not receive, or cannot verify, information that we are required to obtain for AML/CTF compliance, we may be unable to act for you or continue acting for you.
Do I need to do this every time I instruct you, or just once?
We are required to collect and verify information when we first provide any designated service to you, and periodically after that. Where we have an ongoing business relationship, we may also need to ask you for additional information over time. For example, if your circumstances were to change, such as a change in business structure or ownership, or if any of your identification details expire, we may need to update your details.
Is there a charge for ID verification and screening?
You will be charged for identification checks, searches or other verification steps that we may be required to undertake. For example, a fee may be payable for:
- verification of identity carried out by a third party provided such as First AML
- company or other searches of registers of government agencies
- legal work carried out in connection with interpreting results or investigating ownership or control structures or beneficial ownership.
Why are you asking about my source of funds?
In some cases, the law requires us to obtain information about your sources of funds and wealth to understand how funds were obtained.