Anti-money laundering and counter terrorism financing regulation for lawyers begins on 1 July 2026. This regime will involve a shift in how practitioners onboard clients and manage matters.
In order to understand where to begin, the following roadmap may assist.
December 2025 to January 2026
Learn and become familiar with the language and regime. AUSTRAC as the regulator has been updating their guidelines and information. A history of AML can be found here and practitioners can also read a summary of the regime on the AUSTRAC website.
Practitioners then need to determine whether or not they will be providing designated services because this determines whether you need to comply.
AUSTRAC has provided further information and examples of designated services. It is important for all practitioners to review this information and document what areas they will cover.
It may be that after such a review, you may decide not to provide a particular service as this will result in you staying outside the AML / CTF regime. If you only provide one such designated service, you will become a reporting entity and will need to comply with the regime.
Documenting this information provides evidence to AUSTRAC that you have turned your mind to determining whether you will be within the regime. It will also provide clear lines to your staff if you decide not to provide such designated services to ensure that you remain outside the regime. Scope creep is a common issue for practitioners.
January to March 2026
If you are providing a designated service, you will need to decide who will be your AML / CTF Compliance Officer, Governing Body and Senior Manager(s).
All three roles are important, but the compliance officer is one that is responsible for communicating with AUSTRAC on behalf of the practice. Further information on this role can be found here.
Please note that if you are a sole practitioner, you may undertake all three roles. An understanding of those three roles can be found here and is the first step in establishing your AML/CTF program.
You should also subscribe with AUSTRAC for updates. AUSTRAC will be publishing an AML / CTF Program starter kit for legal practices at the end of January 2026.
We understand that the starter kit should provide practitioners with a risk guide, policies, client due diligence/onboarding, compliance toolkit, personnel (staff) due diligence, and your maintenance program. It is important for practitioners to start planning to have an AML / CTF Program in place by 1 July 2026.
February 2026
Review the AUSTRAC program starter kit once it is published in January and start to modify the program to your practice. If you subscribe to AUSTRAC, you should automatically be notified when this becomes available.
31 March to 1 July 2026
As a reporting entity, you will need to Enrol with AUSTRAC. You cannot enrol before 31 March 2026 and certain information must be provided. The above link to our webpage outlines that information.
It is sensible to collate that information in anticipation of 31 March 2026 and perhaps wait a few days before attempting to enrol as there may be quite a lot of traffic on the AUSTRAC website when enrolment for Tranche 2 entities begin.
Feb to 1 July 2026
Identify which staff will need and undertake both personnel (staff) due diligence and AML / CTF training. This not only includes new staff but existing staff and is essential in understanding and embedding the process into your practice.
Before 1 July 2026
Amend your standard retainer agreements to include AML / CTF clauses covering the right to decline / cease services, delay / refuse services for lack of client due diligence (CDD) information and report suspicious matters.
After 1 July 2026
- Customer due diligence (CDD) – begin to conduct initial and/or enhanced CDD on your clients. Further information can also be found here.
- Reporting – be prepared to submit a report to AUSTRAC. In particular practitioners will need to look at suspicious matter reports (SMRs), threshold transaction reports (TTRs) and AUSTRAC compliance reports.
- Record keeping – as a reporting entity, you will be required to keep records of your AML / CTF program, CDD and your transaction record of your designated service (ie: your file). Please see further information from AUSTRAC here.
- Review and monitor training – you will be required to periodically assess your staff training and update when necessary.
- Review and update – you will be required to review and update your AML / CTF Program at least once every 3 years.
- Conduct an independent evaluation
We are very cognisant that this will be a considerable shift in how the legal profession conducts their practices but legal practitioners are both resilient and capable.
Until AUSTRAC completes its guidance and releases the program starter kit, we suggest that practitioners wait before considering RegTechs. This is not to say that they cannot investigate possible options but it is difficult to purchase something when AUSTRAC as the regulator has not finalised their guidance to the profession.
Not every practice will necessarily need a RegTech solution. Please see AUSTRAC CEO’s speech to REIQ which provides an outline of AUSTRAC’s approach on some of the above issues.
We also appreciate that there is a lot to consider but if you take the time to methodically make your way through this article, we hope it will give you a clearer picture on the AML / CTF regime.
Resources:
- Anti-Money Laundering / Counter Terrorism Financing – Queensland Law Society
- AML/CTF Reform | AUSTRAC
- Practice Advisory Service – Queensland Law Society – our practitioners are happy to meet with you to discuss.
- Ethics – Queensland Law Society
One Response
I appreciate the Law Society’s updates on this issue and note that there are still a lot of ‘unknowns’ by what appears to be AUSTRAC failure to finalise the guidelines.
This is why I will be closing my firm’s trust account. The regulatory requirements are far too onerous and time consuming for a micro firm.