Insights- AML Requirements and what it means for our clients
From 1 July 2026, Australia’s anti-money laundering and counter-terrorism financing rules (AML/CTF) are expanding and because of this accountants are now caught under these rules.
The regulator, AUSTRAC has introduced “Tranche 2” reforms to accountants which adds another level of compliance regulations to our already heavily regulated industry.
So what does this mean for you as a client or a potential client of Alto?
What’s happening?
AML/CTF rules have extended to now apply to to more professions. The industries that are being introduced are those that the government beleives can be used to move or hide dirty money (potentially without even being aware of it).
From 1 July 2026, AML/CTF obligations will apply not only to accountants, but also to lawyers and real estate professionals which means they will need to comply with formal AML/CTF requirements similar to those already in place for banks for many years.
Why is it happening?
The purpose of these changes is to try and reduce financial crime. But unfortunately for the rest of us, to catch out the criminals things are about to become just a little harder for the every day honest business.
What does it mean for you?
You should expect this will happen when you:
-
-
come onboard as a new client
-
set up a new company/trust/ SMSF
-
make changes to your current structure
-
buy or sell a business
-
deal with higher-risk transactions, cash transactions or unusual payment patterns
-
This is called Customer Due Diligence and focuses on understanding and identifying the real decision makers or beneficial owners behind a business.
-
Driver’s licence, passport or other identification.
-
Company registers, trust deeds and other entity documents
-
Details for directors, trustees, shareholders, and beneficiaries
-
Explanation of the nature of your work, typical payment flows or sources of wealth.
2. Questions or scrutiny on unusual or large transactions.
If something looks out of the ordinary, for example, unusual third-party payments, unexplained large cash amounts, irregular overseas transactions, accounting firms are now required to consider whether it needs to be reported to AUSTRAC.
This doesn’t mean we think that you have done something wrong, it just means that this new system requires professionals to actively monitor and report certain types of transactions that they consider to be red flags.
Where we fail to follow the above procedures, we can be subject to penalties and other enforcements by AUSTRAC.
What we’re doing.
We will be making adjusting our on boarding procedures as well as ongoing client processes to ensure we stay compliant.
We will do our best to ensure we limit the extra work for you where we can, but if we do ask for extra information or ask more questions about your transactions and business, we appreciate your patience.
Author: Donna Bruce
