From 1 July 2026, accountants across Australia — including Trinity Accounting Practice — are being brought under the country’s anti-money laundering and counter-terrorism financing laws. In practice, that means you may notice a few new steps when we onboard you, take on a new entity, or provide certain services: a request for photo ID, a short form to complete, and the occasional follow-up question. None of it is personal, none of it is optional, and we’ll guide you through every step. This guide explains what’s changing, why, and the simple things you can do now to keep it painless.
What AML and CTF actually mean
Two acronyms sit behind these reforms, and they’re worth understanding in plain English:
- AML — Anti-Money Laundering. Rules designed to stop money earned through crime being “cleaned” by passing it through legitimate businesses. AML laws require certain businesses to confirm who they’re dealing with and keep proper records of those checks.
- CTF — Counter-Terrorism Financing. Rules intended to prevent money being used to fund terrorism. Like AML, it involves identifying clients, understanding who really controls a business, and watching for unusual activity.
The regulator overseeing all of this is AUSTRAC (the Australian Transaction Reports and Analysis Centre). Where the rules require it, AUSTRAC receives reports from businesses captured under the regime — and from 1 July 2026, accounting firms are among them.
Why this is happening now
Australia is bringing its laws into line with international standards set by the Financial Action Task Force (FATF), the global body that sets the benchmark for fighting financial crime. Professions like accounting, law and real estate are being included because they can be exploited by criminals to move or disguise money — often without the professional ever realising it. The reforms (commonly called the “Tranche 2” reforms) were passed into law in December 2024 and take effect on 1 July 2026. This is a nationwide legal change — every accounting practice in the country is in the same position.
The key idea: “designated services”
The new rules don’t apply to everything an accountant does. They apply when we provide what the law calls a designated service — and whether the rules bite depends on the type of service, not simply the fact that you work with an accountant.
Examples of services that are generally captured include:
- Helping buy, sell or transfer real estate
- Helping buy, sell or transfer a company or trust
- Holding, managing or controlling money or property on your behalf
- Assisting with equity or debt financing transactions
- Creating or restructuring a company, trust or other legal arrangement
- Acting as — or arranging someone to act as — a director, trustee or partner
- Providing a registered office or business address for a company
Preparing a straightforward individual tax return, on its own, is generally not a designated service. But the net is wide. The moment we help set up a company, manage a trust, or even handle something like a Division 7A loan, the rules can apply. For most established business clients with companies or trusts in the mix, it’s safest to assume verification will be needed at some point.
What this means for you, step by step
1. A one-off identity check
Before providing a designated service, we’re required to verify the identity of every client — new and existing. This is called customer due diligence. For most people it’s quick: your full name, date of birth and residential address, checked against a current government-issued photo ID such as a driver’s licence or passport. For companies and trusts, we’ll also need to confirm directors, trustees and anyone who controls more than 25% of the entity.
2. Verification once, across your whole structure
If you operate through several entities — say you’re a director of two companies and a trustee of a family trust — your personal identity only needs to be verified once. Each entity that needs a designated service has its own check, but we coordinate the whole thing so you’re not repeating yourself.
3. Ongoing record-keeping in the background
The identity check is largely a one-off, but the obligation to keep your details current is ongoing. From time to time we may ask you to confirm or update information — particularly if your circumstances change significantly, such as restructuring your business or moving overseas. AML/CTF records must be kept securely for at least seven years, in line with the Privacy Act 1988.
A few questions we’re already hearing
“Does this mean you suspect something?”
Not at all. These checks apply to every client at every accounting practice in Australia. They aren’t triggered by suspicion — they’re a blanket legal requirement, exactly like the ID checks you go through at a bank. It’s not personal, and it’s not something we’ve chosen to introduce.
“I’ve been a client for years — why now?”
We understand it can feel unnecessary after a long relationship. But the law requires formal identification on file for all clients we provide designated services to, not just new ones. Think of it as a one-off step that brings your file up to date. Once it’s done, it’s done.
“Why are you asking where my money comes from?”
In specific situations — usually involving large sums, complex structures or international elements — the law requires us to ask about the source of funds for a transaction. These are standard risk-assessment questions set by the legislation, not a reflection of any concern about you.
“What if my trust deed is missing?”
Under the new regime, we generally need to sight the trust deed to complete checks on a trust. If a deed can’t be located, it can hold up a designated service until it’s resolved — and resolving it (for example, a court application or re-establishing the trust) takes time and legal advice. If you suspect your deed has gone missing, raise it with us sooner rather than later.
“Will you tell me if you report something?”
If we ever form a genuine suspicion that an activity relates to money laundering or serious crime, we’re legally required to report it to AUSTRAC. We’re also legally prohibited from telling you a report has been made — doing so is an offence known as “tipping off.” This applies to every accountant in the country. If we ever seem unable to discuss a particular detail, this may be why.
Will it cost more?
Honestly, there will be some cost to this. Accounting firms now have to invest in verification software, staff training and ongoing compliance systems, and there are out-of-pocket fees to verify each person and entity. Industry bodies have suggested the reforms could add a small percentage to accounting fees across the profession. At Trinity, our approach is to be upfront and practical: we’re investing in technology to keep the process efficient, and we’ll always explain any verification fees clearly before they apply — no surprises. If you’d like to know exactly how this affects your particular structure, just ask us.
The simplest things you can do to prepare
For most clients, no action is needed today. When the time comes, we’ll guide you through exactly what’s required. But two small things make it smoother:
- Make sure your photo ID is current — a valid driver’s licence or passport for each person connected to your entities.
- Keep your contact details up to date with us so we can reach you quickly when a check is needed.
If you operate through a trust, it’s also worth confirming you can lay your hands on the trust deed. That one document trips up more people than anything else.
Not sure whether the new AML/CTF rules affect your structure? We’re happy to walk you through exactly which of your services are caught and what you’ll need to provide — in plain English, with no jargon.
How Trinity will support you
These changes add a layer of administration, but they’re also designed to protect honest businesses and strengthen trust across the financial system. Our job is to make the process feel like a five-minute formality rather than a hurdle. We’ll tell you what we need, work from the records we already hold, and coordinate everything across your entities so you can keep your attention where it belongs — on cash flow, growth and running your business. If you have a question the FAQs above don’t cover, get in touch and we’ll talk it through.
General advice only. This article contains general information current as at June 2026 and does not constitute tax, financial or legal advice. It does not take into account your personal circumstances, objectives or needs. AML/CTF obligations are set by Commonwealth legislation and administered by AUSTRAC, and the detail may be refined through rules and guidance. Before acting on any information in this article, you should consider its appropriateness to your situation and seek professional advice from Trinity Accounting Practice or another qualified adviser. Liability limited by a scheme approved under Professional Standards Legislation.