From 1 July 2026, Australian law firms will be subject to Anti‑Money Laundering and Counter‑Terrorism Financing (AML/CTF) laws (Tranche 2 reforms). These changes align Australia with international standards and introduce new requirements when certain legal services are provided.
When this applies
Our AML/CTF obligations arise when we provide designated services, including:
- Property or business transactions.
- Receiving or managing client money or assets.
- Forming or restructuring companies, trusts or partnerships.
- Nominee or registered office services.
Where a designated service is involved, we are required to complete Client Due Diligence (CDD) before proceeding. For other matters, we may still request information where appropriate to meet our professional obligations.
What this means for our clients
Our approach is risk‑based and proportionate. Lower‑risk matters usually involve simple verification, while higher‑risk transactions may require additional information.
Depending on the matter, this may include:
- Identity and ownership checks.
- Verification of source of funds or wealth.
- Ongoing review if circumstances change.
- Secure record‑keeping for at least seven years.
- Reporting suspicious activity to AUSTRAC (where required by law).
If required checks cannot be completed, we may be unable to act on a particular transaction unless further information is provided.
Minimising disruption
We will rely on public registers and trusted data sources where possible, and only request documents or your involvement when necessary.
Protecting your information
Confidentiality and legal professional privilege remain fundamental. Your information is handled in accordance with privacy laws and our professional and ethical obligations. See Lavan’s Privacy Policy for more details.
Our commitment
We will guide you through the process, explain what is required and respond to any questions along the way.
Contact details
If you would like further information, please contact your Lavan representative or email us at: AMLCO@lavan.com.au