Explaining the new Anti-Money Laundering (AML) requirements

With the introduction of enhanced Anti-Money Laundering (AML) requirements, times are changing, and businesses like Financially Sorted must adapt to an increasingly regulated environment that places greater emphasis on transparency, accountability and compliance. It is now more important than ever to ensure that appropriate verification, record-keeping and compliance processes are in place.

From 1 July 2026, new Australian Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws apply to certain services provided by accountants, bookkeepers, lawyers, real estate professionals and other advisers. These changes are part of the Federal Government’s Tranche 2 AML/CTF reforms.

Why Are These Changes Happening?

The reforms have been introduced to strengthen Australia’s ability to detect and prevent the following:

• Money laundering
• Terrorism financing
• Serious financial crime
• Fraud and criminal use of business structures

Historically, criminals have used professional advisers and business structures to conceal the source or movement of illicit funds. According to the Federal Government, the reforms bring Australia into closer alignment with international standards and are designed to protect businesses and clients by reducing the risk of money laundering, fraud and other financial crimes.

As a result, accounting firms like Financially Sorted, that provide certain services may be classed as high-risk and are therefore now required to undertake client due diligence, verify identities and maintain records to help protect the integrity of Australia’s financial system.

What Accounting Services May Require Identity Verification?

Not all accounting services are affected. Routine services such as preparing tax returns, BAS preparation and general bookkeeping may not automatically trigger AML/CTF obligations. However, identity verification may be required when we provide certain “designated services” which include:

• Establishing a company
• Establishing a trust
• Restructuring an existing business or group
• Setting up corporate trustees
• Setting up self-managed superannuation funds (SMSF)

Who May Need To Complete Identity Verification?

Identity verification will depend on the service being provided by our team; we may be required to verify the identity of:

• Individual Clients
• Company Officeholders
• Shareholders and Beneficial Owners
• Trustees
• Partners
• Authorised Representatives that may be acting on behalf of an entity or individual

What Information May Be Requested?

To meet our legal obligations, we may request:

• Drivers license or passport
• Proof of residential address
• Company registration details
• Trust deeds
• Shareholder information
• Details of beneficial owners
• Information regarding the source of funds or source of wealth where appropriate

Note, in some circumstances additional information may be required for higher-risk matters.

What This Means For Our Clients

You may notice some additional questions or requests for documentation when engaging us for certain “designated” services. While this may add a small step to our onboarding process and service we are delivering, these requirements are now part of Australian law and are designed to protect businesses, individuals and the wider community from financial crime.

How Will The Process Work At Financially Sorted?

At Financially Sorted, we are committed to making this process as simple and secure as possible, whilst ensuring we meet our regulatory obligations. We have leveraged the use of technology to streamline the verification process. This will ensure a seamless experience for our clients while ensuring we meet the highest standards of regulatory compliance. We understand these new requirements may seem unfamiliar or even a little daunting at first.

Please be assured our team is here to guide you through every step of the process, answer any questions you may have, and make the verification process as straightforward and stress-free as practically possible.