Understanding the new anti-money laundering requirements
What Is Changing?
From 1 July 2026, Australian law practices will be required to comply with expanded Anti-Money Laundering and Counter-Terrorism Financing obligations.
These reforms are part of a broader national framework intended to reduce the risk of professional services being used to transfer, disguise, or legitimise funds derived from unlawful activity.
Accordingly, before providing certain legal services, KG Lawyers will be required to undertake additional identity verification, due diligence, and risk assessment procedures.
Why Is Further Information Required?
KG Lawyers may ask our clients to provide information or documents that have not previously been required.
This may include:
- Proof of identity;
- Information about the source of funds for a transaction;
- Details about the purpose and nature of a matter or transaction;
- Information concerning companies, trusts, partnerships, or other entities involved; and
- Documents confirming ownership, beneficial ownership, or control of assets.
These requirements are not unique to KG Lawyers. Banks, law firms, accountants, real estate agents, and other regulated businesses in Australia will be subject to the same compliance obligations.
What Does This Mean for our Clients?
Identity Verification
KG Lawyers may request identification documents and use secure electronic verification systems to confirm your identity.
Information About the Matter
KG Lawyers may ask questions about the purpose of a transaction, the parties involved, or the source of funds being used.
Supporting Documentation
In some cases, additional documents may be needed to satisfy mandatory AML/CTF compliance requirements.
Completion of Required Assessments
Before certain legal work can commence or continue, KG Lawyers must complete the required AML/CTF checks, due diligence enquiries, and risk assessments.
Additional Costs
Where mandatory AML/CTF checks are required, additional costs may be incurred and charged in accordance with the KG Lawyers’ costs disclosure and engagement terms.
Why Are These Changes Important?
Money laundering and terrorism financing can cause serious harm to individuals, businesses, and the wider community.
These activities are commonly associated with serious criminal conduct, including:
- Organised crime;
- Drug trafficking;
- Human exploitation;
- Fraud and financial crime; and
- Terrorism financing.
The purpose of the AML/CTF regime is to make it more difficult for criminal organisations to misuse legitimate businesses and professional advisers to facilitate unlawful activity. Compliance by law firms assists in protecting the integrity of Australia’s financial, commercial, and legal systems.
Making the Process Straightforward
KG Lawyers is committed to ensuring the process is as clear and efficient as possible. We will explain any information we require, assist you through the verification process, and only request information necessary to meet our legal obligations.
Protection of Personal Information
KG Lawyers take the privacy and security of your personal information seriously.
Information collected for AML/CTF purposes will be managed in accordance with applicable privacy laws and KG Lawyers’ Privacy Policy.
Legal Reporting Obligations
In certain circumstances, KG Lawyers may be required to report particular transactions, activities, or concerns to government authorities. In some cases, the law may prohibit KG Lawyers from notifying a client that a report has been made.
Contact Details
T: (03) 5251 1238
E: office@kglawyers.com.au
A: 2a/19 Clifton Springs Road, Drysdale, Victoria, 3222
3 Brown Street, Portarlington, Victoria, 3223
(PO Box 245, Drysdale VIC 3222)
Liability limited by a scheme approved under Professional Standards Legislation.