AML/CTF Hub

Not under the Commonwealth AML/CTF Act. Lawyers aren’t yet directly regulated as ‘reporting entities’ like banks or real estate agents. However, you still have ethical and professional duties to avoid facilitating money laundering, and must comply with existing laws (for example, under the Proceeds of Crime Act).

More information about when the upcoming AML obligations for legal practitioners will come into force can be found on AUSTRAC's information page.

‘Tranche 2’ is the proposed extension of Australia’s AML/CTF regime to lawyers, accountants and other professionals. If passed, you would have new legal obligations such as verifying clients’ identities, keeping risk-based records, and reporting suspicious matters to AUSTRAC.

The Australian Government expects to introduce legislation in late 2025. The exact start date is not yet confirmed. The ACT Law Society will keep you updated and provide support as it progresses.

An AML/CTF program protects your business from criminal exploitation through money laundering, terrorism financing, and proliferation financing. It helps you fulfil your AML/CTF obligations and contributes to a safer Australian financial system. 

Your AML/CTF program must contain:

• ML/TF/PF risk assessment: Identifies and assesses the risks of money laundering terrorism financing and proliferation financing your business may reasonably face in providing its designated services.
• AML/CTF policies: Your business must develop and maintain policies, procedures, systems and controls that appropriately manage and mitigate your business’ risks. These policies must also ensure that you comply with your AML/CTF obligations and be appropriate to the nature, size and complexity of your business.

Your AML/CTF program must be documented and approved by a senior manager of your business. It must be kept up-to-date to reflect significant changes to your business and relevant ML/TF/PF risk products released by AUSTRAC. It must also be independently evaluated at least once every 3 years. 

Your AML/CTF program must be subject to appropriate governance arrangements. This includes oversight by a governing board or senior management, and the appointment of a fit and proper person as an AML/CTF compliance officer to oversee day-to-day implementation. If you are a sole trader, you can take on these responsibilities yourself. 

If you wish to share the costs of compliance with other businesses and fit within the framework established by the AML/CTF Act and Rules, you may be able do so within a reporting group. Entities in a reporting group share some or all risk management and compliance arrangements including those set out in a group AML/CTF program established by a lead entity of the group. The reporting group concept is currently being finalised through changes to the AML/CTF Rules.

Customer due diligence (CDD) helps you understand who your customers are and the ML/TF/PF risks they may bring to your business. The AML/CTF Act establishes the following CDD obligations: initial CDD, ongoing CDD, enhanced CDD and simplified CDD. 

The information you collect and verify to complete CDD will depend on the ML/TF/PF risk profile of the customer, with enhanced CDD being applied in higher risk scenarios and simplified CDD being available in low risk scenarios. 

More information on the different levels of due diligence can be found here.

Not under AML/CTF legislation, but it’s wise to strengthen your due diligence now — for example, confirming who your client is, understanding the nature of their matter, and documenting this process. It will make compliance easier if Tranche 2 becomes law.

Contact the ACT Law Society’s Practice Support team for guidance, or explore the resources on this hub. We’ll continue to add templates, checklists and CPD opportunities to help you prepare.

AUSTRAC has a number of webinars to help inform and support practitioners and legal practices as they make changes in order to comply with Tranche 2 of the AML Act.

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The assessment on money laundering can be downloaded here, and the assessment on terrorism financing can be downloaded here.

Yes, AUSTRAC maintains a suite of e-learning courses located here.