From 1 July 2026, new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) obligations will come into effect for accountants and other professional service providers, including lawyers and real estate agents.  These rules are administered by AUSTRAC and already apply to banks, lenders, and other financial institutions.

In practical terms, this means we may be required to undertake identity verification and additional associated compliance procedures as a standard component of our engagement process going forward.

For existing clients, these requirements will not apply immediately. However, where we provide a ‘designated service’ on or after 1 July 2026, we will be required to complete the relevant verification and compliance checks.

Some typical ‘designated services’ for accountants may include assisting with the purchase or sale of real property or businesses, arranging business finance, establishing new structures for clients, or providing our address as your business’s registered office. However, compliance-related services such as tax returns, BAS preparation, bookkeeping, payroll, and general advisory services are generally not classified as designated services and therefore will not ordinarily trigger these obligations.

We also wish to assure you that any information collected will be used solely for the purpose of complying with our legal obligations under AML/CTF legislation. We are required to retain certain records for a minimum period of seven years, and all information will be managed in accordance with applicable Australian privacy laws. Your information will not be used for marketing purposes or disclosed to third parties.

These changes are significant and represent legal obligations with which we are required to comply. Should you have any questions or concerns regarding these requirements, or the security of your information, please do not hesitate to contact us.