From 1 July 2026 new laws have changed how Australian law firms manage certain matters. Under the Anti-Money Laundering and Counter-Terrorism Financing Act we’re now required to verify the identity of every client and, in some cases, ask questions about where the money in a transaction is coming from before we can act. If you’ve engaged us before or you’re about to engage us for the first time, this article explains what’s changed, what you’ll be asked for and why.
What Is AML/CTF and Why Is It Now Affecting Lawyers?
AML/CTF stands for Anti-Money Laundering and Counter-Terrorism Financing. The laws are designed to prevent criminals from using legitimate businesses to disguise illegal funds or finance terrorism. They’ve applied to banks, casinos and financial institutions in Australia since 2006. From 1 July 2026 they were extended to lawyers, conveyancers, accountants and real estate agents. This is called the Tranche 2 reform.
The regulator, AUSTRAC, oversees compliance across all reporting entities. As a firm providing property, commercial and trust-related services, we’re now a reporting entity too.
Which of Our Services Are Affected?
The new rules apply to what the law calls “designated services”. For Pathway Legal, that includes conveyancing and property transactions, business sales, purchases and restructures, company and trust formation and management.
What Will You Be Asked For?
When you engage us on a designated service matter we’ll ask you to complete a quick identity check and questionnaire. This usually means providing a current photo ID such as your driver’s licence or passport, and in some cases a second form of identification. For company or trust clients we’ll also need information about beneficial owners and controlling parties, and we will need to complete a verification of their identity as well.
We will also ask about the source of the funds involved. This is a legal requirement that applies equally to every client on every relevant matter and doesn’t reflect any personal concern about you or your matter.
We’ll always explain what we need and why, and we’ll make the process as straightforward as possible.
I’ve Already Provided ID to Someone Else. Do I Have to Do It Again?
Yes. Under the Act each business captured under the new laws is required to complete its own due diligence for the services it provides. Even if you’ve already provided ID to your bank, your real estate agent or another law firm, we’re still required to complete our own checks before we can act for you. We know this feels repetitive, especially in property transactions where several parties are asking for the same information. It’s not something we can shortcut but we’ll make our part as quick as possible.
What Happens If I Can’t Provide the Information?
If the required information is not provided or if we are unable to verify the information provided this may have serious consequences, including delays in progressing your matter, delays in settlement, an inability for us to continue acting for you or a termination of our retainer in circumstances where we are not legally permitted to continue. This is not specific to our firm or to your individual matter. We appreciate that these requests can be inconvenient, however your prompt assistance allows us to meet our legal obligations and helps avoid unnecessary delays in your transaction.
How Is My Information Handled?
Any information you provide will be handled in accordance with our professional obligations, privacy obligations and internal security procedures. The information is collected for legal compliance purposes and to allow us to properly act on your behalf.
How Do You Complete These Requirements?
These checks are easily completed via a virtual identification process whereby you undertake the verification yourself. All you need is a phone with a camera and your identity documents. You will also receive a questionnaire commonly known as KYC, which stands for Know Your Client. This document will ask you information about the transaction so that we can keep moving forward with your matter.
