On 1 July 2026, the Australian Government expanded Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws, governed by the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. The expanded laws now apply to many professional service providers, including accounting firms. 

While the new requirements will introduce some additional compliance procedures, they are designed to help protect businesses, the Australian financial system, and the wider community from financial crime. This includes crimes such as money laundering, terrorism financing, organised crime, fraud, tax evasion and other financial crimes.

What does this mean for our clients?

If you engage our firm for certain services, we will be required by law to undertake additional client verification and due diligence procedures.

In many cases, you may notice very little difference. However, we may ask for more information than we have in the past, even if you have been a client for many years. This is a legal obligation that applies equally to all clients receiving affected services.

What information may we ask for?

Depending on the services we provide, we may request:

• Proof of identity (such as a passport or driver's licence)
• Confirmation of your residential address
• Information about your business activities
• Details of company ownership or beneficial owners
• Information about trusts, partnerships or other entities
• The purpose and nature of certain transactions
• The source of funds or source of wealth for particular matters
• Information about people acting on behalf of a business or organisation

For companies, trusts and other entities, we may also need to identify and verify individuals who ultimately own or control the organisation.

Will existing clients need to provide information?

Even if you have been our client for many years, the legislation may require us to obtain updated identification or additional information to meet our legal obligations. We appreciate your cooperation if we contact you requesting updated documentation.

Will this delay any work we complete for you?

It is our goal to continue to provide our high level of service and turnaround times that our clients expect and are familiar with. We have been preparing for this change of law and have been proactive in setting up systems and processes to deal with the new requirements. However, there may be occasions where we cannot commence or continue work until we have completed the required verification processes. Providing requested information promptly will help us continue to deliver our services efficiently. 

Is my information secure? 

Any personal or business information you provide will continue to be handled in accordance with our professional obligations and Australian privacy laws. The information is collected solely to comply with our legal obligations and to protect both our clients and our practice from financial crime.

Your personal information collected for compliance with the AML/CTF laws will be handled in line with the Privacy Act 1988 (Cth), which regulates how personal information is used, collected and disclosed. A copy of Smith Thornton Accountants’ privacy policy is available on our website and by request from your accountant.

What services are affected? 

The new laws generally apply when accountants provide certain designated services, particularly where they assist with activities such as:

• Buying or selling businesses
• Establishing companies, trusts or other entities
• Managing client funds in certain circumstances
• Buying or selling real property or businesses on behalf of clients
• Certain corporate structuring or transaction services
• Providing a company with a registered office address

Not every accounting service will be subject to the new requirements, but where the law applies, we must comply.

What happens if the required information isn't provided? 

The legislation may prevent us from providing certain services if we cannot complete the required customer identification and due diligence procedures. In some situations, we may be legally required to decline or cease acting until the necessary information has been provided.

How you can help

If we contact you requesting identification or other information, we encourage you to:

• Respond as soon as possible.
• Provide complete and accurate documentation.
• Notify us if your ownership structure or key personnel have changed.
• Ask us if you are unsure why particular information has been requested.

Working together will help ensure we can continue providing services with minimal interruption.

We're here to help 

We understand these new requirements may raise questions from our clients. Our team is committed to making the process as straightforward as possible and will guide you through any additional information or documentation required.

If you have any questions about how these changes may affect you or your business, please contact our office. We will be happy to assist.