Anti Money Laundering and Counter Terrorism Laws coming to an accounting firm near you…

Clients with company accounts in Australia, or shares in America will recall over the last couple of years getting a bunch of official forms, needing to be completed to prove your identity,

And those of you with trusts, would have been asked to prove who the beneficiaries of your trust were - to ensure that you were not financing terrorism!

Well - the Australian government - in their wisdom - have decided to extend their Anti Money Laundering laws out to accountants as well  which means we are about to get to know you all just a little bit better.

What You Need to Know

As of 1 July 2026, Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime will expand to include accountants like us at blueprint4. This is part of the federal government's "Tranche 2" reforms, administered by AUSTRAC, aimed at strengthening protections against financial crimes such as money laundering and terrorism funding. These changes apply to high-risk services we provide, including company formations and company secretarial services.

What are AML/CTF Rules?

AML/CTF laws require regulated entities to identify and mitigate risks of illicit activities. For accountants, this means implementing a formal compliance program before offering designated services. Key obligations include:

- Customer Due Diligence (CDD): Verifying your identity using reliable documents like passports or driver's licenses.

- Risk Assessments: Evaluating the money laundering risks associated with your business or transactions.

- Ongoing Monitoring: Keeping an eye on unusual patterns, such as large or unexplained transfers, and reporting suspicious matters to AUSTRAC if needed.

- Record-Keeping: Maintaining detailed records for at least seven years.

These rules aren't new to banks or casinos, but they're now extending to professions like accounting, law, and real estate to close gaps in Australia's financial system.

How Will This Impact You?

For our clients, the changes mean a more structured process when bringing in new clients, or in setting up and managing your existing company and trust structures. 

You may need to provide additional identification or explain the source of funds for certain transactions - similar to what banks already require. This could involve extra questions like "Why this large deposit?" or requests for supporting documents to prove your identity. While it might add a short delay to services, it's designed to protect everyone from fraud and ensure compliance.

Rest assured, your privacy remains paramount; we handle data securely under strict guidelines. These measures ultimately safeguard your business and the broader economy by deterring criminals. If you're concerned about how this affects your specific situation, reach out, we're here to guide you through it smoothly.

As we noted earlier in the article, this does not come into effect until 1 July, however we will be spending the coming months preparing for it and will reach out to you if this impacts you to provide further information.

Mark Dunsmuir.