From 1 July 2026, new national AML/CTF regulations require us to update our client verification processes.

What is AML/CTF?

AML = Anti-Money Laundering

CTF = Counter-Terrorism Financing

From 1 July 2026 new services and entities come under the regulation of AUSTRAC as a result of changes to the AML-CTF Act 2006.

Specifically, accounting practices are now subject to what is known as Tranche 2 requirements under the reform.

As a result, you may be asked to provide updated identification or information regarding business structures - even as an existing client - in order for us to meet our mandatory obligations under the regulations.

Entities that are regulated under Tranche 1 measures (such as banks and credit unions) are also impacted by the Amendment, with them being subject to updated requirements around their customer due diligence (CDD) and monitoring processes. We are already seeing the impact of this with increased activity around requests from banks for various company documentation for clients.

Objectives of the Amendment Act

The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (the Amendment Act) passed the Parliament on 29 November 2024.

The Amendment Act amends the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (the AML/CTF Act).

Reforms to Australia’s anti-money laundering and counter-terrorism (AML/CTF) regime were needed to "ensure it can effectively deter, detect and disrupt money laundering and terrorism financing, and meet international standards set by the Financial Action Task Force (FATF)". (source: Overview of the AML/CTF Amendment Act)

What this means for you:

• Updated Verification: We may need to re-verify the identity of some existing clients under certain circumstances
• Verification of new clients: Effective 1 July 2026 we are required to verify every new client's identity before we can start - this will be a standard part of how all professional services firms will operate from that date
• Beneficial Ownership: We will need to collect more detailed information about who owns or controls business entities
• Proactive Compliance: These checks are mandatory. 

How we are conducting our ID Verification

To comply with these new regulatory requirements, we are using the BGLID system to verify client identities - which is faster and more secure than manual processes. It is a purpose-built verification solution designed to help accounting practices meet these new obligations quickly, easily and importantly, securely.

As part of the process, you will receive a secure link. The entire process only takes a few minutes and is designed to keep your personal information safe with BGLiD being ISO27001 certified. Verification is instantaneous.

We will reach out individually if we require additional information from you.

For more information on these reforms, visit the AUSTRAC website ... the government body responsible for the AML/CTF program.

We appreciate your cooperation in helping us meet these new, mandatory compliance standards, and we will keep you informed as various changes that may impact you are rolled out.

The Amendment Act and its explanatory materials are available on the Parliament of Australia website.

posted 9/3/2026