By Rachel Turk, Principal Solicitor – RMT Legal

From 1 July 2026, significant changes to Australia's anti-money laundering and counter-terrorism financing laws will begin affecting legal practices across the country.

While many clients have become accustomed to providing identification when dealing with banks and real estate agents, these requirements are now extending to lawyers involved in certain transactions.

Why Are These Changes Happening?

The Australian Government has expanded Australia's anti-money laundering (AML) regime to include certain professional service providers, including lawyers, accountants, trust and company service providers, and real estate professionals.

The purpose of these changes is to prevent criminals from using legitimate businesses and professionals to:

• Launder the proceeds of crime;

• Conceal assets;

• Commit fraud;

• Finance terrorism; and

• Use complex structures to hide the true ownership of property or businesses.

Although the vast majority of clients are honest and law-abiding, lawyers are often involved in transactions that can be attractive to criminals seeking to legitimise illicit funds.

What Does This Mean for Clients?

You may notice some changes when engaging a solicitor, particularly for property and commercial matters.

Depending on the nature of your matter, we may need to:

• Verify your identity;

• Obtain information about the source of your funds;

• Understand the purpose of the transaction;

• Verify the beneficial owners of companies or trusts;

• Conduct politically exposed person (PEP) and sanctions checks; and

• Request additional documents or information before we can proceed.

Some clients may also be asked questions about:

• Where purchase funds are coming from;

• Whether funds have been gifted;

• The ownership structure of companies and trusts; or

• The purpose of a particular transaction.

These questions are not intended to be intrusive. They are legal requirements designed to protect the integrity of Australia's financial and legal systems.

Will This Delay My Matter?

Potentially, yes.

Just as banks cannot proceed until they have completed their compliance requirements, law firms may also be unable to act until the necessary AML checks have been completed.

To avoid delays, we encourage clients to:

✔ Provide identification documents promptly.

✔ Respond to requests for information as soon as possible.

✔ Advise us early if your matter involves companies, trusts, overseas funds, gifts from family members, or complex ownership structures.

Is My Information Kept Confidential?

Absolutely.

Solicitors remain bound by strict confidentiality obligations and professional conduct rules. Information collected for AML purposes is handled securely and used only in accordance with our legal obligations.

What Matters Are Most Likely to Be Affected?

AML requirements commonly arise in matters involving:

• Buying and selling property;

• Transfers of property between family members;

• Business purchases and sales;

• Establishing companies or trusts;

• Managing client funds; and

• Certain commercial transactions.

How Is RMT Legal Preparing?

At RMT Legal, we have implemented systems and procedures to comply with the new legislation while keeping the process as simple and efficient as possible for our clients.

Our goal is to minimise disruption and ensure that transactions can proceed smoothly while meeting our legal obligations.

The Key Message

If your solicitor asks for identification documents or additional information about your transaction, there is no cause for concern.

These requests are becoming a normal part of legal practice and are designed to protect both clients and the wider community from financial crime.

If you have any questions about the new anti-money laundering requirements or how they may affect your matter, please contact our office. Our team is happy to guide you through the process.