From 1 July 2026, new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws will apply to certain services provided by Accountants and other professional advisers.
While these changes are designed to strengthen Australia’s ability to detect and prevent financial crime, they may also change the information your Accountant needs to collect from you.
What is changing?
As part of the reforms, accounting firms will be required to carry out additional identity and client verification procedures when providing certain services.
This means that, in some circumstances, we may need to confirm who we are acting for, understand the ownership structure of entities, and verify information about individuals connected to a business, company or trust.
What information might we ask for?
Depending on the services being provided, you may be asked to provide:
• Photo identification, such as a driver’s licence or passport
• Company, trust or business ownership information
• Details of directors, shareholders, trustees or beneficiaries
• Information about the purpose of a transaction or source of funds
• Updated identification documents from time to time
For many clients, this may simply involve providing information that we already hold or updating records that have changed over time.
Why are these changes being introduced?
The reforms are part of a broader national initiative to combat money laundering, terrorism financing and other forms of financial crime.
Similar obligations have applied to banks and financial institutions for many years. The new rules extend these requirements to additional professions, including accountants, lawyers and real estate professionals.
What do you need to do?
At this stage, no immediate action is required.
If we need additional information from you after the new rules commence, a member of our team will contact you and explain exactly what is required.
We understand that requests for identification or ownership information may feel unfamiliar in an accounting context. However, these requirements are being introduced across the profession and are intended to help protect the integrity of Australia’s financial system.
As we implement these changes, our goal will be to keep the process as simple and efficient as possible for our clients.
If you have any questions, please contact your Highview Accountant.
