New Laws Mean We Will Be Asking You More Questions
From 1 July 2026, new federal laws will change how Armour-Craig Legal onboards and works with clients. We want to explain what is happening and why, so there are no surprises when you instruct us.
What Are These New Laws?
The Federal Government has introduced new anti-money laundering and counter-terrorism financing laws (AML/CTF) under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth), as amended in 2024. These laws extend obligations that have applied to banks and financial institutions for years to a new range of businesses — including lawyers, conveyancers, accountants, and real estate agents.
The laws are designed to help detect and disrupt money laundering and the financing of terrorism. Property transactions and legal services are recognised internationally as high-risk channels for these activities, which is why lawyers and conveyancers are now captured.
All lawyers in Australia who provide services caught by the new laws are under the same obligations. This is not something Armour-Craig Legal has chosen to do — it is a legal requirement.
What Does This Mean for You?
When you instruct us on a matter caught by the new laws — which includes most property, conveyancing, business, and estate planning work — we will need to ask you for information we have not previously requested.
Specifically, we will need to:
- Verify your identity
- Obtain information about your source of wealth and the source of any funds used in your matter
- Ask whether you are a politically exposed person (PEP) or a close family member of a PEP — a PEP is someone who holds or has held a prominent public position, such as in government, the courts, or the military
Where a company, trust, or partnership is involved we will also need to:
- Conduct company searches and obtain identification details of directors and shareholders
- Identify the ultimate beneficial owner — that is, the individual or individuals who ultimately own or control the company, trust, or partnership
We will ask for this information as part of our onboarding process when you instruct us on a new matter. We may also need to ask for updated information during a matter if circumstances change.
Why Are We Asking About Source of Wealth?
We understand this question may feel unusual, particularly for longstanding clients. It is not a reflection on you personally — it is a legal obligation that applies to all our clients, regardless of the nature or value of their matter.
The law requires us to understand the origin of funds used in a transaction. For a property purchase, for example, we may need to know whether funds are coming from savings, the sale of another property, a loan, an inheritance, or a gift. Most clients will find this straightforward to answer.
What Happens to Your Information?
Any information you provide for AML/CTF purposes will only be used for that purpose. It will be kept securely in accordance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth), the Privacy Act 1988 (Cth), and other applicable laws.
We are required to keep records for seven years and to lodge an annual report with AUSTRAC — the Australian Transaction Reports and Analysis Centre — confirming how we have met our obligations.
You should also be aware that the law requires us to report certain matters to AUSTRAC, including any suspected money laundering. Importantly, the law also prohibits us from telling you if we have made such a report.
Will There Be Any Additional Cost?
There may be a small additional cost in some matters. Where we engage a third party to verify your identity, or where company searches are required to identify directors, shareholders, or beneficial owners, those costs will be passed on to you. We will let you know in advance if this applies to your matter.
What If You Cannot or Will Not Provide the Information?
If we are unable to obtain or verify the information we are required to collect, we may be unable to act for you, or may need to cease acting in an ongoing matter. This is not a choice — it is a legal obligation. A lawyer who acts for a client without completing the required checks is in breach of the Act.
What Should You Do?
Nothing needs to be done right now. When you instruct us on a new matter from 1 July 2026, we will walk you through the process. Having the following ready will help things move quickly:
- Current photo ID (driver’s licence or passport)
- Details of where the funds for your transaction are coming from
- If a company or trust is involved, details of its directors, shareholders, and beneficial owners
For existing clients returning with a new matter, we will ask for this information even if we have acted for you before. The law requires us to conduct these checks at the start of each new matter.
For any questions about the new AML/CTF laws and how they will affect your matter, contact Fleur Craig of Armour-Craig Legal on (03) 5636 4986 or fleur@armourcraiglegal.com.au.