What’s changing

From 1 July 2026, legal professionals will be brought within Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime (known as Tranche 2).

This long-anticipated change brings Australia in-line with global standards and introduces new compliance obligations for law firms when providing certain services.

When AML/CTF obligations apply

The new obligations will apply when we provide specific “designated services”, including:

  • assisting with property or business transactions

  • handling client money or assets for a transaction

  • assisting with forming or restructuring companies, trusts or partnerships

  • providing nominee roles or registered office services.

When these services are involved, we are required to complete Client Due Diligence (CDD) checks before proceeding.

For other legal services, we may still request certain information where appropriate, to protect your interests and ensure we meet our professional obligations.

What you can expect

We’re committed to making the process efficient, proportionate and commercially focused.

CDD checks will always reflect the nature of the matter: higher risk transactions may require more detail, while lower risk matters will typically involve straightforward verification.

You may notice additional safeguards, such as:

  • identity and structure checks – verifying beneficial ownership of your business or trust and source of funds or wealth

  • ongoing monitoring – reassessing risk if your circumstances change or as new information becomes available

  • record keeping – securely retaining certain information for a minimum of seven years

  • reporting obligations – in limited cases, reporting suspicious activity to AUSTRAC without notifying you.

These requirements are designed to uphold transparency and trust, and to help protect your business and reputation. If we cannot complete the required checks, we may be unable to proceed with a particular transaction or service unless alternative measures or additional information can be provided.

Minimising disruption

We will streamline information collection by using public registers and trusted data sources and will only request documents and your involvement when necessary.

Protecting your information

Confidentiality and privilege remain core to our relationship. As always, your information will be handled with care in accordance with privacy laws, our professional obligations and our commitment to ethical conduct. For more information, please refer to our Privacy Policy.

Our commitment to you

At G+T, we’re taking a forward-thinking, technology-led approach to these reforms. This involves enhancing our onboarding and risk management processes, training our people and leveraging technology to reduce client impact.

We will work with you every step of the way, explaining what’s required, answering questions and keeping things as simple as possible. If you would like to learn more, please speak to your usual G+T contact or email us at AML@gtlaw.com.au.

Last updated: September 2025 — subject to future guidance and legislative developments