What changes are happening from 1 July 2026?
Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime is expanding. Historically, Australia’s AML/CTF framework has applied mainly to banks and other financial institutions. From 1 July 2026, it will also apply to a broader group of professional service providers, known as Tranche 2 entities, when they provide certain designated services under the AML/CTF Act. These entities include law firms, real estate firms, conveyancers, accountants.
The reforms recognise the important role professional service providers play as gatekeepers to the financial system. They are intended to reduce the risk of Australia’s economy being exploited for financial crime and bring Australia into closer alignment with international standards on fighting money laundering terrorism financing.
This is a significant regulatory change, and we want our clients to understand what it means in practice.
What services are affected?
Our obligations are triggered when we provide these designated services, including:
- Assisting you to buy, sell or transfer real estate, companies, other legal arrangements or business assets
- Managing client funds in connection with a transaction, or assisting in equity or debt financing
- Forming or restructuring companies, trusts, partnerships or other legal arrangements.
Not every legal service will be affected.
What we will need from you?
Where a designated service is involved, we are required to conduct Client Due Diligence (CDD) before we can proceed. This is similar to the identity and verification process you may already be familiar with from banks and financial institutions.
The CDD may involve:
Jackson McDonald’s approach
With our enduring focus on providing excellent client services, we are committed to meeting our obligations in a way that minimises disruption to you and your business.
Where possible, we will use public registers and verified data sources to complete checks. We'll only ask for documents and information when we genuinely need them, and we will be clear about why.
If we are unable to complete the required checks, we may not be able to proceed with a particular matter or transaction. We will always communicate this promptly and work with you to identify a path forward where one exists.
What stays the same
Our obligations under the AML/CTF regime do not override or diminish legal professional privilege or our duty of confidentiality to you. Your information will continue to be handled in accordance with our Privacy Policy, applicable privacy laws and our professional obligations as legal practitioners.
Questions?
If you have questions about how these changes may affect your upcoming matter, speak to your Jackson McDonald contact directly.
If your business is captured by Tranche 2 and you’d like advice on your own compliance obligations, please contact Elizabeth Tylich.
This page reflects the legislation and guidance current as at 18 June 2026.