Understanding the AML/CTF Reforms And What They Mean for You

On 1 July 2026, accountants, lawyers, real estate professionals and other trusted advisers across Australia joined banks and financial institutions under the country’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime for the first time. You may have already noticed a few more questions and a little more paperwork at the start of an engagement. Here’s why and what it means for you.

What’s changed, and why

The AML/CTF Act has regulated banks, casinos and remittance providers since 2006. What’s new is the extension of those same obligations to professional services, like accounting, law, real estate, conveyancing, and trust and company service providers – under reforms known as “Tranche 2.”

The reasoning behind this is that AUSTRAC estimates more than $68 billion in crime-related money is laundered through Australia’s economy each year, and professional services have long been recognised internationally as a channel criminals can exploit to move that money – through company structures, trusts and property transactions. Bringing accountants and other advisers into the regime closes that gap and brings Australia into line with international standards set by the Financial Action Task Force.

For firms like Bentleys, this isn’t a matter of choice. It’s the law. From 1 July 2026, we’re required to:

• Verify the identity of our clients
• Assess the money laundering and terrorism financing risk associated with the services we provide
• Monitor client activity on an ongoing basis and report anything suspicious to AUSTRAC

What it means for you

If you’re a Bentleys client, or thinking about becoming one, you can expect us to ask for some things we may not have needed before. Exactly what we ask for depends on how you’re structured and the services you’re engaging us for, but it typically includes:

• Photo ID, such as a passport or driver’s licence
• Proof of address, such as a utility bill or bank statement
• Documentation for companies, trusts or SMSFs, where relevant
• Details of who ultimately owns or controls a business or trust structure
• Information on the source of funds, for higher-risk transactions

If you operate through a company, trust or other structure, we’re also required to look through to the individuals who ultimately own or control it, not just the entity itself. This applies equally to every client, regardless of how long we’ve worked together. It isn’t a judgement on you or your affairs, it’s a consistent standard we’re required to apply across the board.

Handled with the same care we bring to everything else

We know these checks add a step to getting started, so we’ve built our process to keep that step as light as possible. In practice, that means:

• A clear explanation, upfront, of exactly what we need from you and why
• Secure collection and storage of your information, used only for regulatory purposes
• Technology-supported verification wherever we can, to reduce back-and-forth
• A team on hand to walk you through anything that isn’t clear

Your information is protected under the same confidentiality standards we apply to all client data, and it’s used solely to meet our obligations under the Act, never for anything else.

What happens if you’re asked for more information

For most individual clients, verification is a one-off step at the start of an engagement. For businesses, trusts and higher-risk transactions, we may need to come back to you periodically, or request source-of-funds information for a specific matter. If that happens, we’ll always explain why and what we’re going to do with what you give us.

Our commitment to you

Compliance regimes like this work best when they’re treated as routine. Our role is to make the process as simple and transparent as possible while meeting our obligations under the law, and to keep thinking ahead on your behalf, as these reforms continue to bed in across the profession.

If you have any questions about what’s being asked of you, or why, please get in touch with your Bentleys adviser. We’re here to make compliance easy for you.