What the New AML/CTF Rules Mean for Our Clients

New Requirements for Professional Service Firms

From 1 July 2026, Australia's anti-money laundering and counter-terrorism financing

(AML/CTF) laws expanded significantly, bringing thousands of additional businesses

within the regulatory framework.

For the first time, many accounting firms, legal practices, conveyancers and real estate professionals are now subject to AML/CTF obligations when providing certain services.

What Has Changed?

Businesses providing designated services are now required to meet a range of

compliance obligations, including:

• Implementing an AML/CTF compliance program

• Verifying the identity of clients

• Conducting customer due diligence

• Reporting suspicious matters where required

• Maintaining appropriate records

These obligations are designed to help detect and prevent money laundering, terrorism financing and other financial crimes.

Does This Apply to Every Accounting Service?

No.

The new rules do not apply to every service provided by an accounting firm.

They generally only apply where we provide designated services under the AML/CTF

legislation.

Examples include:

• Establishing or restructuring companies or other legal entities

• Assisting with the purchase or sale of a business or company

• Receiving, holding or managing client funds in connection with certain

transactions

• Providing a registered office or principal place of business address

Routine accounting services such as tax return preparation, bookkeeping, payroll

processing and many compliance services are generally not designated services.

What This Means for Our Clients

If you engage us to provide a designated service, you may notice some changes to our onboarding process.

Depending on the nature of the engagement, we may ask for additional identification

documents, request further information about the transaction or undertake additional

verification before we commence work.

These procedures are now required by law and apply regardless of how long we have

acted for you.

Working Together

While these additional steps may require a little more information at the start of an

engagement, they help ensure we continue to meet our legal obligations while

protecting both our clients and the integrity of Australia's financial system.

At Lockwood & Ward, we are committed to making this process as straightforward as

possible.

If you have any questions about how the new AML/CTF requirements may affect your

engagement, please contact our team.

Lockwood and Ward Pty Limited | ABN 76 113 938 373

Level 9, 50 Clarence Street, Sydney NSW 2000

Tel: (02) 9299 7044 | www.lockwood.com.au