The Law Council of Australia has released new guidance to assist legal practices in determining whether they provide a designated service under Australia’s expanded anti-money laundering and counter-terrorism financing (AML CTF) regime, which comes into effect on 1 July.
The guidance is designed to help firms navigate one of the most significant questions arising from the Tranche 2 reforms: whether the services they provide bring them within the scope of the new reporting regime.
Law Council of Australia President Tania Wolff said identifying whether a practice provides a designated service was critical to understanding its obligations.
“Whether the new obligations apply to a firm depends on whether they provide a prescribed designated service,” Ms Wolff said.
“Any practice that provides a designated service will have to comply with the new rules. This makes it essential for practices to be able to properly assess whether their work falls under this definition.”
Legal practices that undertake designated services, including certain real estate and corporate transactions, equity and debt financing, and corporate restructuring, will now be required to comply with the expanded AML CTF framework.
Among other obligations, regulated practices must enrol with AUSTRAC by 29 July 2026, implement an AML CTF compliance program, undertake client due diligence and, in some circumstances, verify a client’s source of wealth.
Ms Wolff acknowledged that while many of the underlying obligations would be familiar to lawyers, the reforms introduce a significant new regulatory framework for the profession.
She also reminded practitioners of the prohibition on “tipping off” clients where a suspicious matter report has been made to AUSTRAC, noting that firms should seek legal and ethical advice where such circumstances arise.
The Law Council said it would continue to monitor the implementation of the reforms and work with Government to address any unintended consequences for legal practice.
The new Guidance Note is available through the Law Council of Australia. Western Australian practitioners can also access practical resources, guidance and updates through the Law Society of Western Australia’s AML CTF Hub.
