Why Your Lawyer May Ask for More Information: AML/CTF Rules

Clients engaging a lawyer for certain property, business, trust or company matters may now be asked for more information than they supplied in the past. From 1 July 2026, Australian anti-money laundering and counter-terrorism financing requirements extend to legal practices when they provide designated professional services.

The new checks are not an accusation of wrongdoing. They are part of a risk-based system intended to prevent legal and financial services from being misused.

When Can the Rules Apply?

The obligations attach to designated services, not automatically to every conversation with a lawyer. Relevant work can include aspects of conveyancing, transactions involving businesses or legal entities, and services connected with companies, trusts and other legal arrangements.

What Might Your Lawyer Request?

• Current identity documents and confirmation of your residential address.
• Information about a company, trust, partnership or other entity involved in the matter.
• Details identifying the individuals who ultimately own or control an entity.
• An explanation of the purpose and intended nature of the transaction.
• Information or documents concerning the source of transaction funds or wealth where required by the risk assessment.
• Updated information if circumstances change during the matter.

Companies and Trusts May Require More Work

Identifying an individual is usually more straightforward than understanding a layered ownership or control structure. Where a company or trust is involved, the practice may need documents such as company extracts, trust deeds and amendments, details of trustees or directors and information about beneficial owners or controllers.

Why Source-of-Funds Questions Arise

A lawyer may need to understand where money used in a transaction is coming from. Depending on the circumstances, supporting material might include loan documents, bank records, sale proceeds, probate documents, gift information or evidence of accumulated savings.

Allow Time Before Exchange or Settlement

Missing or inconsistent information can delay the opening or progression of a matter. Clients purchasing property or completing a time-sensitive business transaction should respond early and provide clear, legible documents. Complex ownership structures and overseas elements may take longer to verify.

Privacy and Record Keeping

Legal practices must balance AML/CTF record-keeping obligations with professional duties and privacy requirements. Clients should use the secure method nominated by the practice rather than sending identity documents through an unapproved channel.

Official Guidance

AUSTRAC provides a legal-profession guidance hub and information about its AML/CTF program starter kit.

How Russell Kelly & Associates Can Assist

Russell Kelly & Associates assists clients with NSW property transactions, conveyancing, business and commercial matters, trusts and estates. Providing requested information early helps us understand the parties and progress applicable work efficiently.

Read about our Property Law and Conveyancing and Business and Commercial Law services.

This article provides general information and is not legal or compliance advice. Individual circumstances and current law must be considered. Information current as at 9 September 2026.