New AML/CTF Laws Australia

Important Update: How New AML Laws Affect Our Clients and Services at Eden Lawyers

Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws are changing — and for the first time, law firms like Eden Lawyers will be directly regulated under this regime.

These reforms are designed to protect Australia’s financial and legal systems from being used for criminal purposes such as money laundering or terrorism financing. While these changes introduce new compliance steps for law firms, they also help ensure transparency and integrity in every transaction we handle.

As your trusted legal advisors, we want to explain what these new rules mean for you as a client of Eden Lawyers, and how they may affect the way we take on new matters — particularly in areas like property conveyancing, commercial law, and trust matters.

What’s Changing and Why

From 1 July 2026, Australian law firms will be required to comply with the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth).

This means that when law firms provide certain “designated services” — such as assisting with the purchase or sale of property, managing trust funds, setting up companies, or handling client money — they must follow strict identification, verification, and reporting procedures set out by AUSTRAC (Australia’s financial intelligence agency).

In short, Eden Lawyers will soon be required by law to:

• Verify the identity of all new clients and, in some cases, the people who ultimately own or control an entity (known as “beneficial owners”).
• Understand the purpose of a transaction or matter we are instructed on.
• Assess and manage risks relating to money laundering or terrorism financing.
• Report suspicious or threshold transactions to AUSTRAC when required.
• Keep secure records of verification and transaction information.

These are standard procedures in the financial and banking sectors — and soon, they’ll apply to law firms as well.

How This Affects New Clients of Eden Lawyers

If you’re engaging our firm for the first time (particularly for property or business transactions), you’ll notice a few new steps during the onboarding process.

These changes are designed to protect both our clients and our firm by ensuring all transactions are legitimate, transparent, and compliant with Australian law.

1. Identity Verification

We’ll ask you to provide identification documents before we can commence work.

This might include:

• A passport, driver’s licence, or other government-issued photo ID
• For companies: ASIC registration documents, a list of directors and shareholders, and information about beneficial owners
• For trusts: copies of the trust deed and identification for the trustee and beneficiaries

We may also need to verify your address and contact details using recent bills or statements.

2. Source of Funds and Wealth

For some transactions — particularly in property conveyancing or business acquisitions — we may need to understand where the funds involved are coming from.

You may be asked to provide supporting documentation, such as:

• Bank statements or loan documents
• Proof of sale of another property or asset
• Investment statements or business records

This information helps us meet our legal obligations and ensures we only facilitate legitimate transactions.

3. Additional Questions About the Matter

We might ask more detailed questions about:

• The purpose of your transaction or matter
• The nature of your business or entity
• Any foreign ownership, offshore structures, or international elements involved

These questions are not intrusive — they are required under federal law and are part of our duty to conduct a proper AML risk assessment before acting.

4. Timing and Documentation

Because of these extra steps, you might notice:

• A slightly longer onboarding process, especially for complex or international matters
• Occasional requests for additional documents or clarification
• Our team spending more time verifying information before settlements or fund transfers

We appreciate your patience and understanding — these measures are designed to protect you as much as they protect us.

How It Impacts Common Areas of Practice

Property & Conveyancing

Buying or selling property is one of the most common areas affected by the new AML laws. Before we can act in a conveyancing matter, we’ll need to verify:

• The identity of the buyer or seller
• The source of funds being used for the purchase or transfer
• The purpose of the transaction (e.g. investment, development, or personal use)

Even family transfers or transactions with no monetary consideration may still fall under the AML regime if they involve a transfer of ownership.

Our conveyancing team at Eden Lawyers is updating all internal procedures to make this as smooth and efficient as possible for our clients.

Commercial and Corporate Transactions

If you engage us for business sales, share transfers, or corporate structuring, we’ll now need to conduct more detailed due diligence on:

• Business ownership and control structures
• Source of investment funds
• Any cross-border elements or related entities

This ensures all corporate activities we assist with comply with the new AML standards and maintain the highest level of integrity.

Trusts and Estate Matters

Where we assist with trusts, estates, or the management of client funds, we’ll now verify all relevant parties — including trustees, beneficiaries, and related entities.

This process helps protect against the misuse of trusts or estate assets and aligns with national efforts to increase financial transparency.

Our Commitment to You

At Eden Lawyers, our priority is to protect our clients’ interests while maintaining the highest standards of legal and ethical practice.

We understand that these new requirements may seem like extra paperwork, but they are an important step toward strengthening the integrity of Australia’s legal and financial systems.

We are implementing secure systems, clear client checklists, and streamlined verification processes to minimise any inconvenience to you. Our team will always handle your personal and financial information confidentially, in accordance with our professional obligations and privacy laws.

What You Can Do to Prepare

If you’re planning to engage Eden Lawyers in the near future — especially for a property transaction, business purchase, or trust matter — here are a few simple steps you can take to help the process run smoothly:

1. Gather your identification documents early. If you’re a company or trustee, ensure your corporate or trust records are up to date.
2. Be ready to provide basic financial background information. If you’re purchasing property, for instance, keep records showing the source of funds.
3. Allow extra time for onboarding before key settlement or transaction deadlines.
4. Ask questions. Our team is happy to explain why a document is needed or how your information is protected.

In Summary

The new AML/CTF laws are part of Australia’s broader effort to ensure transparency in financial and legal transactions.

For clients of Eden Lawyers, this means a few extra steps when we start working together — but it also means stronger safeguards, greater trust, and a legal process that meets the highest compliance standards.

We thank you for your cooperation as we implement these changes and look forward to continuing to provide clear, professional, and trusted legal services under this new regulatory framework.

If you have any questions about how the AML laws may affect your upcoming matter, please contact our team at Eden Lawyers. We’re here to guide you through every step.