AML/CTF changes – impacts for accountants and advisers
AML/CTF changes – impacts for accountants and advisers
How do AML/CTF laws affect accountants and advisers?
The latest reforms to Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime apply to many services provided by accountants, lawyers and other professional advisers.
From 1 July 2026, firms that fall within the scope of the AML/CTF changes are required by law to:
- verify client identity
- assess the risk of money laundering or terrorism financing
- monitor client activity
- report suspicious behaviour.
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.
Clients will notice some extra steps when engaging your services, but these checks are now a standard part of doing business and are designed to protect everyone from financial crime.
Changes to how you and your clients work with CGW
These reforms also apply to law firms, meaning you will see changes in the way you and your clients deal with Cooper Grace Ward.
Before we can provide certain services (including initial discussions or meeting with a client or their adviser about certain services), we are required to complete a due diligence process in accordance with the AML/CTF laws.
The due diligence process requires us to do the following before providing assistance to you:
- verify the identity of individuals involved directly in the work we are doing
- where the work we are doing relates to companies, trusts or SMSFs:
- verify the identity of any individuals involved in those entities (e.g. directors, shareholders, appointors or beneficiaries)
- obtain copies of governing documents of the companies, trusts or SMSFs
- in some cases, obtain an understanding of the source of wealth relevant to the work we are doing.
To satisfy this requirement:
- you can expect our team to ask additional questions of you and ask you to provide additional information before we can provide assistance in relation to your questions or request for legal services; and
- you will be contacted to complete a verification of identity process online through our third-party provider, First AML.
The verification of identity process will come to you (and any other individual we are required to identify) either through email or SMS and typically requires you to answer some questions and upload photo ID.
What else has changed?
As the due diligence process takes some time to complete, we may not be able to assist with work as promptly as we have done in the past. Providing the initial information requested by our team and completing the First AML verification of identity process promptly will enable us to assist you without unnecessary delay.
There are also costs involved in completing the verification of identity process and all the associated searches required to comply with the AML/CTF laws. These costs will be passed on to you if you agree to go through the onboarding process, regardless of whether you proceed with any further work.
I am an adviser: what can I do to assist the process?
To minimise delays, we recommend that you:
- let clients know that they will need to complete a verification of identity process with us through the First AML technology platform
- encourage clients to complete the verification process promptly (and contact our team if they have any issues or questions)
- when sending through enquiries (no matter how big or small), provide the following information in addition to your enquiry:
- the following details of the individual directly or indirectly involved in relation to the query:
- full name
- date of birth
- residential address
- email address
- phone number
- copies of the governing documents (trust deeds and constitutions) for each entity directly or indirectly relevant to the query.
- the following details of the individual directly or indirectly involved in relation to the query:
Read more about our approach to collecting and verifying client identification to meet AML/CTF obligations.
Thank you for your support
We appreciate that these new steps create additional administration for everyone involved. CGW will work with you to ensure the process runs as smoothly and efficiently as possible, and we will continue to refine the process over time.
Reliance agreements
Streamlining the process for your clients
To help make things easier for shared clients of your firm and ours, Cooper Grace Ward can enter into a reliance agreement with your firm. This type of agreement allows us to rely on identity checks and information your firm has already collected which complies with the AML/CTF requirements. This can reduce duplication and make the process more seamless for clients.
To indicate your interest in establishing a reliance agreement between Cooper Grace Ward and your firm, please complete the expression of interest form.
We will contact you about the systems both our firms need to have in place to ensure a legally compliant approach that also meets the needs of clients.
Is your firm ready for the changes?
We have prepared a guide for advisers whose services may be subject to the Tranche 2 AML/CTF reforms.
The 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 for accountants and others providing professional designated services.
You may also like to read the overview of the changes that we have provided for clients.
FAQs
Find answers to advisers’ most frequently asked questions about AML/CTF requirements and client identification processes.
Some of my clients have been engaging CGW for many years. Why do they need to go through these extra steps?
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 our new and existing 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 my clients if they 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, or continue to act, for the client.
Do clients need to do this every time they instruct CGW, or just once?
We are required to collect and verify information when we first provide any designated service to a client, and periodically after that. Where we have an ongoing business relationship, we may also need to ask for additional information over time. For example, if the client’s circumstances were to change, such as a change in business structure or ownership, or if any of the client’s identification details expire, we may need to update their details.
Is there a charge for ID verification and screening?
Clients 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 the source of funds?
In some cases, the law requires us to obtain information about the client’s sources of funds and wealth to understand how funds were obtained.