New AML/CTF Laws from 1 July 2026: What Clients Should Expect

What are the new AML/CTF laws?

AML/CTF stands for Anti-Money Laundering and Counter-Terrorism Financing. These laws are designed to make it harder for criminal funds to be moved through legitimate transactions, including property transactions, business structures, companies, trusts and professional services.

The new laws do not mean that ordinary clients are suspected of wrongdoing. They mean that law firms and other regulated businesses must complete certain checks before providing particular services.

How will this affect clients?

If you engage Cimino & Cimino for certain legal or conveyancing matters, we may need to complete customer due diligence before we can progress your matter. This may include verifying your identity, understanding the transaction, confirming who is involved, and obtaining documents about the source of funds or source of wealth where required.

These checks are now part of ordinary legal compliance. They are not optional where the AML/CTF laws apply.

When might these requirements apply?

The requirements may apply to matters involving property, money, companies, trusts or other legal arrangements.

Examples may include:

• buying or selling real estate;
• transferring property;
• acting in a conveyancing transaction;
• creating or dealing with a trust;
• creating or restructuring a company;
• acting for a client using a company, trust or other legal structure;
• transactions involving overseas funds;
• transactions involving gift money, inheritance money or funds from multiple sources; and
• matters where we are required to verify who ultimately owns or controls an entity.

Not every legal matter is affected in the same way. The laws apply to particular services, not every interaction with a solicitor. However, where the laws do apply, the checks must be completed.

What information might we ask for?

Depending on the type of matter, we may ask for information and documents such as:

• your full name, residential address and date of birth;
• proof of identity, such as a driver licence or passport;
• details of any company, trust or other entity involved in the matter;
• company extracts, trust deeds or trustee details;
• details of directors, shareholders, trustees, beneficiaries or beneficial owners;
• evidence of your authority to act for another person, company, trust or estate;
• information about how a transaction is being funded;
• information about whether you or another relevant person is a politically exposed person.

What is “source of funds”?

Source of funds means how the money for a particular transaction was obtained.

For example, if you are buying a property, it may not be enough to say that the money is in your bank account. We may need to understand where the money came from before it reached that account.

Examples of source of funds include:

• employment income;
• business income;
• savings;
• sale proceeds from another property;
• loan funds;
• a gift from a family member;
• inheritance money;
• dividends or investment returns; or
• funds transferred from overseas.

What is “source of wealth”?

Source of wealth is broader than source of funds. It refers to how your overall wealth or assets were accumulated over time.

For example, this may involve employment history, business ownership, property investments, inheritance, investment income or other legitimate wealth-building activities.

Source-of-wealth information will not be required in every matter. It is more likely to be requested where the transaction is complex, high-value, involves unusual funding arrangements, involves overseas money, or otherwise presents a higher AML/CTF risk.

Will this delay my matter?

It can, if the required information is not provided early.

In many matters, we must complete the required checks before providing certain services. If identification, authority documents, trust documents, company documents or source-of-funds information are provided late, this may delay the progress of your matter.

In property matters, clients should not leave AML/CTF checks until just before settlement. The best approach is to provide the requested information as soon as possible after receiving our request.

Why is my lawyer asking questions my bank or real estate agent has already asked?

Different businesses may have separate AML/CTF obligations. Your bank, real estate agent, accountant, conveyancer and solicitor may each be required to complete their own checks.

This can feel repetitive, but it reflects the way the legislation operates. Providing information to one business does not necessarily remove the obligation for another business to complete its own checks.

How will Cimino & Cimino complete identity checks?

As part of our onboarding process, you may receive an electronic identity verification request through InfoTrack or another verification provider used by our office.

You should complete that request promptly. Depending on the matter, we may also ask for additional documents or information after the identity check is completed.

What if a company, trust or estate is involved?

If your matter involves a company, trust, estate or another person acting through a representative, further checks may be required.

This may include confirming:

• who controls the company or trust;
• who the directors, shareholders, trustees or beneficiaries are;
• whether the person giving instructions has authority to act;
• whether the trust deed or company records support the proposed transaction; and
• whether additional identity checks are required for other people involved.

If a trust is involved, please have the full trust deed and any variations ready. If a company is involved, we may need an ASIC company extract and details of the company’s directors and beneficial owners.

Does this affect legal professional privilege?

The AML/CTF regime does not remove legal professional privilege. However, legal professional privilege is not the same as general confidentiality, and it does not apply to every document or communication in a legal matter.

We remain required to protect client confidentiality. At the same time, where AML/CTF laws require us to complete checks, keep records, assess risk or take compliance steps, we must comply with those obligations.

What should clients do?

The best approach is to be organised early.

Before or shortly after engaging us, you should gather the documents that may be relevant to your matter, including:

• current photo identification;
• company documents, if a company is involved;
• trust deeds and variations, if a trust is involved;
• loan approval documents, if borrowed funds are being used;
• sale statements, if funds are coming from the sale of another asset;
• gift letters or supporting documents, if funds are being gifted;
• inheritance documents, if funds are coming from an estate;
• bank statements or transaction records, where required; and
• authority documents, if you are acting for another person or entity.

The bottom line

The new AML/CTF laws are now part of ordinary legal and conveyancing administration in Australia. For most clients, the change will be limited to providing identification and answering some additional questions at the beginning of the matter.

For more complex transactions, more detailed information may be required. These checks are not personal. They are legal compliance requirements.

The fastest way to keep your matter moving is to provide complete and accurate information when requested.

Need assistance?

If you have received an AML/CTF request from Cimino & Cimino, please complete it as soon as possible. If you are unsure what a request means or what document is required, contact our office before the matter becomes urgent.

This article is general information only and is not legal advice. For advice about your particular circumstances, please contact Cimino & Cimino.