Announcements

From 1 July 2026 the Anti- Money Laundering and Counter Terrorism Financing (AML/CTF) regime will introduce significant regulatory changes which will affect the way law firms (as well as conveyancers, real estate agents and accountants) engage with their clients particularly during the initial client engagement process.

More specifically, these reforms extend AML/CTF obligations to this broader range of professional service providers including Carroll & O’Dea Lawyers which will become a reporting entity under the regime. This will change the way we verify client identity and other information, assess risk and manage certain types of engagements.

AUSTRAC, an Australian government agency, regulates reporting entities’ compliance with the AML/CTF regime and acts on financial intelligence to deter, detect and disrupt serious crime. The reforms are designed to strengthen Australia’s financial system and align with international standards aimed at preventing money laundering, the movement of the proceeds of crime the financing of terrorism activities.

By increasing transparency around who is involved in transactions and how assets are controlled or transferred, the reforms help law enforcement to identify such activities and to protect both clients and service providers from being inadvertently involved in unlawful activity.

What information do we need from you?

Where we provide certain services, known as designated services, we are legally required to collect and verify specific information about you and/or your organisation.

This may include details about your identity, the purpose of the transaction, the source of the funds required for the transaction, and information about individuals or entities connected to you (such as people or entities you may represent, beneficial owners, trustees, directors or related companies).

In most cases, this verification process will only need to occur once. If your circumstances change, the information becomes outdated, or if the nature of your matter requires additional checks, we may need to request updated or supplementary information as part of our ongoing monitoring processes we may undertake for the duration of our engagement with you.

We are also required to report any suspicious transactions or behaviour to AUSTRAC, even if we do not proceed with any new engagement with you. We are not permitted to inform you if such a report is made.

What are designated services?

There are nine categories of designated services which are defined under the AML/CTF legislation.

Broadly, they cover activities involving the creation, movement or management of legal structures or assets. This includes assisting with property transactions, forming or restructuring entities such as companies, partnerships or trusts, arranging finance or capital raising, acting in key roles such as a director or trustee, providing nominee services or supplying a registered office or business address. These services are regulated because they can be used to conceal ownership, obscure the source of funds or facilitate the movement of money across borders.

AUSTRAC provides more information on the nature and scope of ‘professional designated services’ here.

What information may we ask you to provide?

Depending on the legal service you require, we may request:

• proof of identity documents (for you and, where relevant, individuals who own, control or act on behalf of your entity)
• key documents for your entity (such as company constitutions or trust deeds)
• details of the beneficial ownership of your entity or trust
• structure charts for complex entities and trusts
• source of funds or source of wealth information
• details of the nature and purpose of your matter
• information about related entities or individuals involved in your matter.

Providing this information promptly helps us progress your matter without delay.

Can I refuse to provide the information?

You are not required to provide the information we request but, if you choose not to, we may not be able act for you and/or may need to terminate an existing engagement with you. The AML/CTF regime imposes strict obligations on reporting entities such as law firms. We cannot provide designated services unless we have collected and verified the information required by law.

How do we maintain confidentiality and your privacy?

We remain committed to our duty of confidentiality to all of our clients. Any personal information, including sensitive information, we collect will be handled securely and kept confidential in accordance with the Privacy Act 1988 (Cth), our professional obligations and our internal data protection policies. Information will only be used to meet our AML/CTF obligations or as otherwise required by law.

The AML/CTF requirements operate alongside, rather than in place of, our existing professional obligations. Nothing in the AML/CTF regime affects our duties as legal practitioners, including our obligations of confidentiality, our duty to act in your best interests, our duty to avoid conflicts, and our broader ethical responsibilities under the legal profession legislation.

What can you expect from us?

As these reforms come into effect (on and from 1 July 2026), we will:

• clearly explain what information we need and why
• provide guidance on how to provide this information efficiently and securely
• minimise disruption to your matter wherever possible
• keep you informed about any additional requirements
• support you throughout the verification process.

Our aim is to make compliance as straightforward as possible while ensuring we meet our legal obligations. This involves using a specialist AML / CTF compliance onboarding platform as part of our approach.

John Willey,

General Manager

Carroll & O’Dea Lawyers

This Important notice was published on 23 June 2026 by Carroll & O’Dea Lawyers and is based on the relevant state of the law (legislation, regulations and case law) at that date for the jurisdiction in which it is published. Please note this does not constitute legal advice. If you ever need legal advice or want to discuss a legal problem, please contact us to see if we can help. You can reach us on 1800 059 278 or via the Contact Us page on our website (www.codea.com.au).