What they mean for you as our client
From 1 July 2026, Australian accounting firms are covered by anti-money laundering and counter-terrorism financing (AML/CTF) laws for the first time. This page explains what that means, why you’ll notice some new steps when working with us, and what we’ll ask of you.
Nothing about how we advise you changes. But like every accounting firm in Australia providing these services, we’re now legally required to verify who our clients are, keep records of those checks, and maintain a compliance program behind the scenes.
What is AML/CTF?
Anti-money laundering (AML) rules are designed to stop money earned through crime being “cleaned” and moved through legitimate businesses and financial systems.
Counter-terrorism financing (CTF) rules are designed to stop money, from any source, being used to fund terrorism.
In practice, both work the same way: businesses in certain sectors are required to know who they’re dealing with, understand who ultimately owns or controls a client entity, keep proper records, and report certain matters to the regulator.
AUSTRAC is Australia’s AML/CTF regulator. Banks, casinos and remittance providers have reported to AUSTRAC for years. What’s changed is who else is now included.
Why does this apply to your accountant?
In 2024, Parliament passed reforms extending AML/CTF obligations to professional service providers, including accountants, lawyers, conveyancers and real estate agents. The reasoning is simple: these professions can be targeted by people trying to move illegitimate money, often without the professional ever knowing.
For accounting firms, the obligations commenced on 1 July 2026. From that date, firms providing certain designated services must:
Enrol with AUSTRAC as a reporting entity
Verify the identity of clients before providing those services, including understanding who ultimately owns or controls companies and trusts
Maintain an AML/CTF program a documented risk assessment, policies and controls
Appoint a compliance officer responsible for the program
Keep records of checks and transactions for seven years
Report certain matters to AUSTRAC where the law requires it
Every Australian accounting firm providing these services carries the same obligations, backed by significant penalties for non-compliance.
What will actually change for you?
For most clients, very little, beyond an identity check.
When you become a client (or when an existing client’s check falls due), we’ll ask you to verify your identity. Typically, we may ask for:
- Photo ID (driver licence or passport)
- Confirmation of your residential address
- For companies: details of directors and anyone who ultimately owns or controls the company
- For trusts: the trust deed and details of trustees and beneficiaries
One important point: the rules require us to complete and record these checks in a compliant way. That means we can’t always simply accept documents you email through, we may need to verify them through an approved process. It’s not that we don’t trust you. It’s that the law requires verification, not just collection.
Once your check is done, it’s done, you won’t be re-verified constantly, though the rules do require us to keep information current and refresh checks in some circumstances.
Does this mean my information gets handed to the government?
The overwhelming majority of clients will never be affected beyond the ID check itself. Verification records stay with us, held securely, as the law requires. Reporting to AUSTRAC only arises in the specific circumstances the legislation sets out, it is not routine surveillance of your affairs and it doesn’t change the confidentiality with which we treat your information day to day.
Will this cost anything?
We want to be upfront with you: these reforms create real new costs for accounting firms, compliance systems, verification fees charged per check, staff training, and the ongoing administration of an AML/CTF program.
What we'd ask of you
Just two things:
- When we send an ID request, respond when you can. We can’t provide certain services until the check is complete, a quick turnaround keeps your work moving.
- Tell us when things change. New directors, a restructure, changes to who controls a trust, these affect the records we’re required to keep current.
FAQ
I've been a client for years. Why do you need my ID now?
The obligations apply regardless of how long we’ve known you. Long-standing clients will be verified progressively, we’ll contact you when your check is due.
Can I just send a photo of my licence?
Sometimes that’s part of it, but the law requires us to verify, not just collect. We’ll walk you through exactly what’s needed when the time comes, it’s designed to be quick.
Does this change the service I get?
Not at all. The same senior team, the same direct service. This sits in the background.
Where can I read more?
AUSTRAC’s website (austrac.gov.au) has plain-language guidance on the reforms and what they mean for clients of professional services firms.
Talk to us
If you have any questions about what these changes mean for you or your business, call us, you’ll speak to a senior member of our team directly, as always.
1300 063 236 · evergreenaccounting.com.au
Your accountant keeps you compliant. We help you perform.
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