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New AML/CTF Laws: What Clients Need to Know When Working with Their Lawyer

From 1 July 2026, significant changes to Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws have come into effect. These reforms expand Australia's anti-money laundering framework to include a range of professional services, including certain legal services provided by law firms.

While many clients may notice additional identity verification requests or be asked for more information at the beginning of a matter, these changes are part of new legal obligations designed to protect Australia's financial system and help prevent money laundering, terrorism financing and other serious financial crime.

Why have these laws changed?

For many years, banks and other financial institutions have been required to comply with Australia's AML/CTF legislation.

The latest reforms extend similar obligations to professionals involved in higher-risk transactions, including lawyers, conveyancers, accountants and real estate professionals when providing certain designated services.

The purpose is to make it more difficult for criminals to misuse legitimate businesses and professional advisers to disguise or move the proceeds of crime.

What does this mean for our clients?

If Connolly Suthers is providing a legal service that falls within the new AML/CTF framework, you may be asked to complete identity verification before we can begin certain work on your matter.

Depending on the circumstances, we may ask you to provide:

Your full legal name
Date of birth
Residential address
Government-issued identification (such as a passport or driver's licence)
Information relating to companies, trusts or SMSFs involved in the transaction
Details of directors, trustees, beneficial owners or other individuals connected with an entity

In some matters, we may also be required to obtain additional information about the source of funds or source of wealth used in a transaction. These requirements are determined by law and will depend on the type of legal service being provided.

Why are we asking for more information?

Many clients have never previously needed to provide this level of information to their lawyer.

The new legislation requires law firms providing designated services to carry out Customer Due Diligence (CDD). This involves understanding who our clients are, verifying their identity and, where appropriate, understanding who ultimately owns or controls companies, trusts or other entities involved in a transaction.

These obligations apply across the legal profession and are not unique to Connolly Suthers.

Will this delay my matter?

It doesn't have to.

The quickest way to avoid delays is to complete any identity verification requests as soon as possible.

For many matters, we are unable to provide certain legal services until the required AML/CTF checks have been completed. Responding promptly to requests for information helps ensure your transaction can proceed as efficiently as possible.

What if I receive an email from InfoTrack?

As part of our onboarding process, some clients will receive an email from InfoTrack, our trusted third-party identity verification provider.

The email will clearly identify Connolly Suthers and guide you through the required verification process.

Completing this process online is generally the fastest and simplest way to satisfy the new legal requirements.

Is my personal information secure?

Yes.

Any personal information collected for AML/CTF purposes is handled in accordance with Australian privacy laws and is used solely to meet our legal and regulatory obligations.

Identity verification completed under the AML/CTF legislation is not a credit check and will not affect your credit score.