AML/CTF reforms and upcoming changes

From 1 July 2026, law firms in Australia will be required to comply with the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act. These reforms will introduce AML/CTF obligations for law firms like Turner Freeman when providing certain services and bring Australia into alignment with international standards.

Services covered by the reforms

The AML/CTF requirements apply to specific “designated services”, including:

• assisting you with the planning or execution of a transaction to sell, buy or transfer property, companies or trusts and other legal arrangements;
• receiving, holding, controlling, or managing property to help you with the planning or execution of a transaction including debt financing;
• assisting you in the planning or execution of the creation or restructuring of a company or any other legal arrangement; and
• acting, or arranging for someone to act on your behalf in particular positions in a company or legal arrangement.

When we provide these services to you, or to anyone acting on your behalf, we will be required to complete Customer Due Diligence (CDD) and collect certain information or documentation before progressing your matter.

Our approach to the reforms

Our approach to CDD will be designed to be balanced, streamlined and considerate of your time and whenever possible, we will use publicly available data to ensure we only request documents from you when they are genuinely required. The level of verification we will be required to conduct will be driven by the service we are providing to you, with more complex or higher risk transactions requiring additional verifications, while routine or lower-risk matters will typically require simple, standard checks.

As part of the reforms, you may notice some additional protective measures incorporated into our processes, such as:

• verification of identity, entity structure and beneficial ownership for companies, trusts and other legal arrangements;
• enquiries to confirm, and where necessary verify, the source of funds or source of wealth relevant to your matter;
• ongoing monitoring to identify changes in circumstances or new information that may influence our risk assessment; and
• secure retention of information and documentation for at least seven years, as required under the new obligations.

If the required verification steps cannot be completed, we may be unable to proceed with providing you with the requested service.

Supporting you through the transition

As we prepare for the AML/CTF reforms commencing 1 July 2026, we are strengthening our onboarding and risk management processes and have invested in technology to ensure any new requirements are implemented smoothly.

Our staff will be fully trained and ready to guide you through each step, clearly explaining what is required and ensuring your experience remains consistent with the high standard of service you expect from Turner Freeman.

How you can help us progress your matter efficiently

To assist us in minimising delays and ensuring your matter progresses as efficiently and smoothly as possible, we encourage you to:

• allow some additional time at the commencement of new matters, particularly where transactions are time-sensitive;
• have identification documents such as your driver licence or passport readily available; and
• respond promptly to any requests for information which may be received to your email address.

You can go to AUSTRAC’s website and learn more about the reforms here. Turner Freeman’s approach will be kept under regular review and updated as AUSTRAC provides further guidance for law firms.