From July 1st, changes to Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws will apply to law firms and other professional service providers.
As part of these new requirements, Moin Morris Schaefer (MMS) must verify the identity of clients and undertake certain due diligence measures when providing legal services.
These changes are important for clients to be aware of, but not alarmed by. They are simply part of new regulatory obligations designed to better prevent money laundering and terrorism financing across Australia.
We understand that these changes may feel invasive to some. Rest assured, the team at MMS is committed to making the process as straightforward, efficient and secure as possible for our clients.
What are the new AML/CTF laws?
The Australian Government is expanding AML/CTF laws beyond banks and financial institutions to include legal practices and other “Tranche 2” professions.
This means MMS will be required to:
● Verify the identity of clients as part of “Know Your Customer” (KYC) obligations.
● Conduct formal client due diligence and maintain records.
● Update and reverify client information where necessary.
● Report suspicious matters to the Australian Transaction Reports and Analysis Centre (AUSTRAC) in certain circumstances.
To support these obligations, MMS will use InfoTrack, a secure third-party platform, to manage identity verification and client onboarding.
Why are these changes being introduced?
These reforms are part of a broader effort to combat financial crime, including money laundering and terrorism financing.
Law firms are involved in matters such as property transactions, trusts, estates and business structures, which means they can unknowingly be exposed to the misuse of funds or hidden ownership arrangements.
The new laws are intended to:
● Strengthen transparency in legal and financial transactions.
● Align Australia with international AML standards.
● Reduce opportunities for criminal misuse of professional services.
● Improve the detection and prevention of financial crime.
For firms like MMS, these requirements are mandatory and form part of our professional obligations.
What does this mean for me as a client?
For most clients, the changes will involve one additional administrative step at the beginning of a matter.
You may receive a request from MMS, or a secure link via InfoTrack, asking you to complete a quick identity check. This usually involves uploading a valid form of photo identification, such as a passport or driver’s licence.
You will also be asked to fill out a short AML onboarding questionnaire. The process is straightforward and designed to be completed online.
Do these requirements apply to existing clients?
Yes.
The new obligations apply to both new and long-standing clients.
If you have recently completed identity verification and onboarding with us through InfoTrack, you may not need to repeat the process immediately. However, from time to time we may need to request updated information to ensure our records remain current.
Will I be asked for anything other than identification?
Possibly.
Depending on the nature of your matter, we may need to ask additional questions about ownership structures, the source of funds, or other relevant information.
These questions are required under AML/CTF laws and help us meet our compliance
obligations.
Is my information secure?
Yes.
Protecting your privacy and personal information remains a priority. InfoTrack is a trusted and secure platform used by legal professionals across Australia.
Information is encrypted and handled in accordance with strict regulatory requirements. Identity documents are collected only where necessary and are retained only for as long as required.
Will there be a cost associated with these compliance checks?
Yes.
As these new AML/CTF requirements introduce additional regulatory obligations for law firms, including identity verification, client due diligence and ongoing compliance monitoring, a fee will be incurred to cover the administrative and compliance work required to meet these obligations.
This fee will be disclosed in your costs agreement at the commencement of your matter.
What should I do if I have questions or need assistance?
Our team is here to help.
We understand that compliance requirements can feel unfamiliar, and we are committed to making the process as simple and straightforward as possible.
If you have any questions about the new AML/CTF requirements or need assistance completing your identity verification or onboarding questionnaire through InfoTrack, please don’t hesitate to contact the MMS team.
