Frequently Asked Questions

Last Updated: 19 June 2026

Do all legal practitioners need to comply with AML/CTF laws?

No. The AML/CTF regime applies to legal practitioners who provide certain designated services.

Not all legal practitioners will be captured by the reforms. Whether the regime applies depends on the services provided, not the practitioner’s area of practice or how the work is described.

What is a designated service?

Designated services are specific activities listed in the AML/CTF legislation. For legal practitioners, designated services include certain activities relating to:

  • real property transactions;
  • managing client money or assets;
  • creating, operating or managing companies, trusts or other legal arrangements;
  • buying or selling businesses; or
  • acting as a nominee or trustee in certain circumstances.

Whether a service is designated depends on the substance of the work performed.

When do the AML/CTF reforms start?

The AML/CTF reforms commence for legal practitioners on 1 July 2026.

From this date, legal practitioners who provide designated services may be required to comply with the AML/CTF regime.

What obligations might apply if I provide a designated service?

Where a legal practitioner provides a designated service, AML/CTF obligations may include:

  • enrolling with AUSTRAC;
  • developing and maintaining an AML/CTF program;
  • conducting customer due diligence;
  • monitoring matters and reporting suspicious matters; or
  • keeping records in accordance with the legislation.

The exact obligations that apply will depend on the nature of the services provided.

What guidance is available for legal practitioners?

AUSTRAC has released Core Guidance and sector-specific guidance for newly captured professions, including legal practitioners.

The Law Society has also developed resources and education to assist practices in preparing for the reforms.

Can I apply for an exemption from AML/CTF obligations?

The AML/CTF legislation allows for exemptions in limited circumstances.

Exemptions are not automatic and generally depend on the nature of the designated service, the level of money laundering or terrorism financing risk, and whether alternative controls are in place.

Practitioners considering whether an exemption may be available should review the AML/CTF Act, the AML/CTF Rules, and relevant AUSTRAC guidance.

Will small practices and sole practitioners have the same obligations as large firms?

The AML/CTF regime is risk-based.

This means obligations should be applied in a way that is proportionate to:

  • the designated services provided;
  • the size and structure of the practice; and
  • the level of money laundering and terrorism financing risk.

Smaller practices are not expected to implement the same systems or controls as large firms where the risk profile does not justify it.

Can technology be used to manage AML/CTF compliance?

Yes. Practices may choose to use technology solutions to support AML/CTF compliance. Technology can assist with activities such as:

  • client identification and verification;
  • record keeping;
  • risk assessments; or
  • ongoing monitoring.

Practices remain responsible for compliance, even where third-party technology or service providers are used.

Do I need to use a specific AML/CTF software provider?

No. There is no requirement to use a particular software product or provider. Practices can choose how they meet their obligations, provided the measures implemented are effective and appropriate to the risks involved.

Will AML/CTF obligations apply to existing clients?

AML/CTF obligations may apply to existing clients in certain circumstances, depending on the services provided and the timing of the engagement.

Practices should review guidance on transitional arrangements and ongoing customer due diligence as it becomes available.

Does AML/CTF override client confidentiality or legal professional privilege?

The AML/CTF regime includes specific provisions dealing with confidentiality and reporting obligations.

Legal professional privilege continues to apply, subject to the operation of the legislation. Practitioners should carefully review the Act, the Rules and guidance to understand how these obligations interact.

Will AML/CTF compliance increase costs for practices?

AML/CTF compliance may involve additional time, resources or systems.

The reforms are designed to be risk-based, allowing practices to tailor their approach so that compliance measures are proportionate to the services they provide and the risks they face.

What happens if I get AML/CTF compliance wrong?

Failure to comply with AML/CTF obligations can have regulatory consequences.

AUSTRAC has a range of supervisory and enforcement tools. Guidance material focuses on assisting reporting entities to understand and meet their obligations.

Will the Law Society provide templates or further guidance?

AUSTRAC has released AML/CTF starter kits for the legal profession, which provide practical, plain language guidance on key obligations under the regime. The starter kits include downloadable documents and worked examples that eligible legal practices can use as a starting point when developing their own AML/CTF documentation and processes, tailored to their individual practice and risk profile.

The Law Society has developed, and will continue to develop, resources that complement AUSTRAC’s starter kits and support legal practices in applying the reforms in a legal practice context. These resources are intended to assist practitioners to understand how the obligations apply to their work, identify whether they are captured, and take practical steps toward compliance.

Additional tools, guidance and education will continue to be released as the commencement date approaches.

How do the South Australian Legal Practitioners Conduct Rules interact with AML/CTF obligations?

The South Australian Legal Practitioners Conduct Rules were amended by the Council on 1 June 2026 to support the commencement of the AML/CTF regime for legal practitioners.

The amendments clarify when a practitioner may be unable to accept, follow or continue to act on a client’s instructions because of AML/CTF obligations or other legal and professional responsibilities. This may include circumstances where a client has failed to provide requested customer due diligence information, or where continuing to act would be inconsistent with the practitioner’s legal and professional obligations.

The amendments are particularly relevant to legal practices that provide, or may in future provide, designated services under the AML/CTF regime.

The Society has prepared guidance on retainer agreements, termination of matters and tipping off provisions. The guidance includes template termination wording for clients and a general client notice that legal practices can use to inform clients about upcoming AML/CTF obligations.

Further guidance is available here.

Where should I start if I have not done anything yet?

Practices are encouraged to:

  • assess whether they provide designated services;
  • familiarise themselves with the AML/CTF framework; and
  • monitor guidance and education updates.

Early awareness and planning will assist practices ahead of commencement.

How can I stay informed?

Further guidance and resources will continue to be released ahead of commencement.

Practitioners are encouraged to:

  • monitor updates from the Law Society;
  • monitor updates from AUSTRAC; and
  • participate in relevant training and education activities.

Where can I get help?

The Law Society provides information, tools and education to support legal practitioners in preparing for the AML/CTF reforms.

AUSTRAC also provides guidance and education resources to assist reporting entities.