Anti-Money Laundering (AML/CTF) Changes – What It Means for You and Your Accountant

From 1 July 2026, the next stage of Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms will extend to a broader range of professional service providers, including accounting firms.

These reforms are intended to strengthen the integrity of Australia’s financial system and reduce the risk of legitimate businesses and advisers being misused in activities such as money laundering, organised crime, and terrorism financing. While the purpose of these changes is both necessary and appropriate, they will introduce additional regulatory obligations for professional advisers.

WHAT WILL CHANGE?

Under the updated framework, accounting firms will be required to implement enhanced compliance measures when providing certain services. These obligations include:

• Establishing formal AML/CTF compliance systems

• Undertaking structured risk assessments

• Verifying client identities through more robust procedures

• Maintaining detailed records to demonstrate compliance

As a result, you may notice some changes in how we collect and confirm information. This may include additional questions relating to business structures, ownership, or the purpose of specific transactions.

We wish to emphasise that these measures are not a reflection of distrust. They form part of a broader national framework designed to safeguard the financial system.

THE IMPACT ON PROFESSIONAL FIRMS

These reforms place a heightened level of responsibility on accounting firms. There is a clear expectation from regulators that firms will implement comprehensive compliance systems and demonstrate that appropriate due diligence has been conducted.

The consequences of non-compliance are significant, and regulatory expectations are high. While these changes will increase the level of work undertaken behind the scenes, our priority is to manage this complexity on your behalf and ensure that your experience with us remains seamless.

OUR PREPARATION

We have already commenced extensive preparation to ensure we are fully compliant ahead of the July 2026 implementation date. This includes:

• Reviewing and enhancing our internal systems and processes

• Implementing updated client identification procedures

• Developing structured risk assessment frameworks

• Conducting team-wide training to ensure both technical understanding and practical application

Our objective is not only to meet our regulatory obligations, but to do so in a way that minimises disruption and maintains efficiency for our clients.

WHAT THIS MEANS FOR YOU?

For some clients, the practical impact will be minimal. However, for most clients, from time to time, you may be asked to:

• Verify the identity of individuals associated with your business (e.g. directors,       shareholders, trustees, or beneficial owners)

• Provide additional information regarding business structures or related entities

• Supply supporting documentation confirming identity, ownership, or control

• Complete updated onboarding or engagement documentation

• Periodically confirm that your information remains accurate

  
  

These steps will be incorporated into our standard processes and are expected to create a significant administrative burden to our Firm, just like every other Firm in the country.

WHY ARE THESE CHANGES BEING INTRODUCED?

The expansion of AML/CTF laws reflects international standards established by the Financial Action Task Force. Globally, regulators have recognised that professionals such as accountants, lawyers, and advisers may be involved in transactions or structures that could be vulnerable to misuse.

Examples include:

• Establishing companies or trusts

• Managing financial transactions

• Advising on complex ownership arrangements

• Assisting with business acquisitions or asset transfers

Importantly, these reforms do not presume wrongdoing. Rather, they require professional firms to take reasonable steps to understand their clients and the nature of the work being undertaken.

Australia has faced increasing international  pressure to align with these standards, which has led to the extension of these  laws to accounting and other professional services.

OUR ONGOING COMMITMENT

As your trusted adviser, we remain committed to helping you navigate an increasingly complex regulatory environment with clarity and confidence.

While the regulatory landscape continues to evolve, our focus remains unchanged: delivering practical advice, maintaining efficient processes, and supporting you in achieving better financial outcomes.

Should you have any questions regarding these changes, please do not hesitate to contact our office.

As always, thank you for your continued trust and support and I look forward to hearing from you.

Disclaimer: The information provided in this video is intended for general informational and educational purposes only. It does not constitute financial, taxation, legal, or other professional advice. You should not rely on this content as a substitute for tailored advice specific to your personal or business circumstances.

While every effort has been made to ensure the accuracy of the information presented, no guarantee is given regarding its completeness, correctness, or timeliness. The creator of this content, along with any associated individuals or entities, expressly disclaims any and all liability for loss or damage that may result from reliance on this information.

Before making any financial, investment, or business decisions, it is strongly recommended that you consult a qualified professional who understands your unique situation and goals.