If you are planning to buy a property, sell a business, or set up a company or trust over the coming year, you may notice some changes in how your lawyer handles the early stages of your matter. New anti-money laundering laws are on the way, and they will change the information law firms need to collect before certain work can begin. Knowing what to expect can help you prepare and avoid unnecessary delays.

What Are the New Anti-Money Laundering Laws?

From 1 July 2026, new anti-money laundering and counter-terrorism financing laws will apply to lawyers and other professionals in Australia when they provide certain “designated services”.

These laws are designed to help prevent legal, property, business and financial services from being used to hide the proceeds of crime or fund terrorism.

What Do the Changes Mean for Clients?

For clients, this means that law firms will need to collect and verify more information before, and sometimes during, a matter. These checks will be compulsory where the legal work falls within the new laws.

The laws will not apply to every legal service, but quite a few service areas are captured, including:

• assisting with buying or selling real estate or businesses;
• managing client money or assets;
• setting up or managing companies or trusts, and more.

What Information Might You Be Asked to Provide?

Clients may be asked to provide information such as:

• full legal name, date of birth and residential address;
• photo identification, such as a passport or driver licence;
• proof of address, such as a utility bill or bank statement;
• details about the source of funds being used in a transaction;
• details about the source of wealth, for example how money or assets were obtained;
• information about companies, trusts or partnerships involved in the matter;
• names and identification details of directors, shareholders, trustees, beneficiaries or other controlling persons;
• details of any person acting on behalf of the client; and
• information about the purpose and nature of the transaction.

How This Works in Practice

For example, a client buying a property may need to explain where the deposit and purchase funds came from. A company client may need to identify its directors, shareholders and any person who ultimately controls the company. A trust may need to provide the trust deed and details of trustees, beneficiaries and appointors.

Lawyers may also need to update client information over time, especially for ongoing matters or where circumstances change. If required information is not provided, a lawyer may be unable to start or continue providing the designated service.

Your Privacy and Confidentiality

These obligations are separate from normal legal advice and confidentiality duties. Legal professional privilege will continue to apply where applicable. However, compliance with compulsory identification and verification requirements will become a standard part of many legal and professional transactions.

Preparing for the Changes

Clients can expect these checks to become a normal part of dealing with lawyers, accountants, real estate professionals and other service providers covered by the new regime. Preparing identification documents and information about funds early can help avoid delays.

If you have a property purchase, business transaction or estate matter coming up and want to understand how these requirements may affect you, our team can help you prepare. Get in touch to discuss your situation and what to have ready before your matter begins.