New national anti-money-laundering laws are changing the checks that law firms across Australia must complete – and a little preparation makes the process straightforward.
Australia is updating its anti-money-laundering laws, and for the first time these rules reach many everyday legal services – including some of the property and estate work our firm handles. The change is national and it affects how our team begins working with new and existing clients.
If you are buying or selling property, or dealing with a deceased estate, you may notice a few extra steps at the start of your matter. None of this is cause for concern. The checks are a legal requirement that applies to every firm and a little preparation makes them quick.
What is changing, and why
For many years, banks and other financial businesses have had to complete anti-money-laundering checks on their customers. New federal laws extend similar obligations to a wider group of professionals – including law firms – for certain kinds of work. The aim is to make it harder for criminal funds to move through legitimate businesses.
Because these are Commonwealth (national) laws, the requirements are the same across Australia. They do not differ from state to state.
What this means for you
In practice, you may be asked for up to three things at the start of a matter:
- Proof of identity – current identification so our team can confirm who you are.
- Source of funds – for some matters, an explanation of where money involved in the transaction is coming from (for example, savings, a gift, the sale of another asset, or a loan), sometimes with a supporting document.
- The people behind a structure – where a company or trust is involved, details of the people who ultimately own or control it.
Our team will tell you exactly what is needed for your matter, so you will not have to guess.
Does this apply in Queensland and New South Wales?
Yes. These are national laws, so the same requirements apply whether your matter is handled in Queensland or New South Wales. The process our firm follows is the same in both states.
How to make the process simple
- Bring current photo identification to your first appointment.
- If your matter involves buying property, have a document ready that shows where your funds are coming from.
- Let us know early if a company, trust or another party is involved.
- Ask us if you are unsure what to bring – our team is happy to help.
These checks are routine, they apply to everyone, and a few minutes of preparation is usually all it takes.
Frequently asked questions
QWhy does the firm need to verify my identity?
New federal laws require firms like ours to confirm the identity of our clients before we act in certain matters. It is a legal obligation, not a reflection on you, and it applies to everyone.
QWhat documents will I be asked for?
Usually current photo identification, such as a driver licence or passport, and sometimes proof of your address. For some transactions we may also ask for a document showing where funds are coming from. Our team will confirm exactly what is needed for your matter.
QWhy are you asking where my money is coming from?
For some property and estate matters, the law now expects us to understand the source of the funds involved – for example, savings, the sale of another asset, a gift or a loan. Being ready to explain this, with a document or two, keeps your matter moving.
QDoes this apply in both Queensland and New South Wales?
Yes. These are national (Commonwealth) laws, so the same requirements apply wherever in Australia your matter is handled, including both Queensland and New South Wales.
Disclaimer: The contents of this article are considered accurate as at the date of publication. The information contained in this article does not constitute legal advice. Readers should seek legal advice about their specific circumstances.
