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Australia’s New AML/CTF Laws Commence on 1 July: We’re Ready to Help

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From 1 July 2026, Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime expands significantly. For the first time, many legal services provided by law firms will become designated services under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth).

These reforms represent one of the most significant regulatory changes affecting the legal profession in recent years. They introduce new compliance obligations for law firms while bringing Australia more closely into line with international AML/CTF standards. 

At Adventum Legal, we have been preparing well in advance of commencement. Our systems, processes and client onboarding procedures have been updated so we can continue assisting clients efficiently while meeting our new regulatory obligations. As commercial and capital raising lawyers based in Melbourne, we regularly advise founders, investors and growing businesses on transactions that fall within the new designated services regime.

What Do the Reforms Mean?

Where a law firm provides a designated service, it must comply with a range of AML/CTF obligations. Depending on the nature of the transaction and the client, these obligations may include:

  • Identifying and verifying clients;
  • Identifying beneficial owners and persons acting on behalf of clients;
  • Assessing money laundering and terrorism financing risks associated with the engagement;
  • Undertaking customer due diligence before providing designated legal services;
  • Conducting enhanced due diligence where required; and
  • Maintaining ongoing monitoring, record-keeping and reporting obligations.

While these requirements introduce an additional compliance step, they are designed to help protect Australia’s financial system and reduce the risk of financial crime.

How Does This Affect Our Clients?

In practice, some clients will notice a change to our onboarding process.

Before we are able to provide certain designated legal services, we may ask clients to complete identity verification and provide information about the ownership and control of companies, trusts or other entities involved in the transaction.

For most clients, this will simply involve completing an electronic identity verification through InfoTrack’s secure AML/CTF Compliance Centre, a trusted provider of legal technology and verification services used by law firms across Australia. Depending on the nature of the client and the transaction, we may also request additional information required to meet our obligations under the AML/CTF legislation.

We appreciate that these requirements introduce an additional administrative step. However, they are now a mandatory part of providing certain designated legal services under Australia’s AML/CTF regime. Completing these checks as early as possible helps avoid unnecessary delays once a transaction is underway, particularly for time-sensitive capital raisings, acquisitions and corporate restructures

If you are interested in learning more about how the reforms could affect you, Austrac has put out guidance on why you might be asked for your ID.

Which Legal Services Are Affected?

The reforms do not apply to every legal matter.

Instead, they apply where a law firm provides a designated service under the AML/CTF legislation. At Adventum Legal, our commercial and capital raising lawyers commonly advise on corporate and commercial transactions involving the establishment, acquisition, disposal or restructuring of legal entities, or the raising or transfer of capital.

Examples of designated services we regularly advise on include:

  • Startup and growth capital raisings;
  • SAFE agreements;
  • Convertible notes;
  • Equity investment rounds;
  • Shareholder restructures;
  • Share sales and acquisitions;
  • Business acquisitions and disposals;
  • Company establishment and corporate structuring; and
  • Other corporate and commercial transactions that fall within the designated services framework.

If you are interested in reading more about what kinds of services are now designated services (including for accountants and real estate agents), check out Austrac’s guidance on designated services

Prepared for 1 July 2026

We recognise that identity verification and customer due diligence can sometimes feel like an additional administrative hurdle. Our objective has been to implement these new requirements in a way that is both compliant and as streamlined as possible for our clients, allowing our capital raising lawyers to continue progressing transactions efficiently while meeting Australia’s new AML/CTF obligations.

Our team has invested significant time in preparing for the commencement of the reforms by updating our internal systems, engagement procedures and client onboarding processes. This means we are ready to assist clients from day one while complying with our new regulatory obligations, whether they are raising investment, acquiring a business, restructuring a corporate group or undertaking another designated transaction.

If you are planning a capital raising, business acquisition, corporate restructure or other commercial transaction on or after 1 July 2026, we encourage you to commence the onboarding process early so any required AML/CTF verification can be completed before substantive work begins.

If you are planning a capital raising, SAFE, convertible note, business acquisition or other corporate transaction, our experienced Australian capital raising lawyers can help you navigate both the transaction itself and the new AML/CTF requirements that now apply.

Key Takeaways

The commencement of the Tranche 2 AML/CTF reforms marks a significant change for both Australian law firms and their clients. While many businesses will notice additional identity verification and customer due diligence requirements, these obligations are now a standard part of providing certain designated legal services.

At Adventum Legal, we have implemented the systems and processes necessary to comply with the new regime while keeping the client experience as efficient as possible. If you are planning a transaction that may fall within the new framework, our experienced capital raising lawyers are ready to guide you through both the transaction and the new compliance requirements.

Author

  • Kelly is a corporate and commercial lawyer dedicated to the Australian startup ecosystem. She specializes in capital raising, governance, and regulatory compliance, helping businesses from early-stage to international scaleups navigate complex commercial transactions. Kelly is a member of the Australian Law Council SME Committee and holds a particular interest in climate-related regulation.

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Need a Startup Lawyer?

We’re here to help you every step of the way!

Contact Adventum

Australia’s New AML/CTF Laws Commence on 1 July: We’re Ready to Help

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