New AML Requirements: Why Client Identification Is More Important Than Ever
You may have noticed more discussion recently about identity verification and Australia’s anti-money laundering and counter-terrorism financing requirements.
For many people, the first time this becomes real is when they’re asked to provide a driver’s license, passport, trust deed or company information. Understandably, the reaction is often, “Why do you need that? I’ve been a client for years.”
The short answer is that the rules have changed.
Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws are expanding to cover certain designated services provided by accountants, lawyers and other professional advisors. Firms may need to verify the identity of clients and better understand the structures they’re dealing with. This includes companies and trusts.
For long-standing clients, this can feel unusual. Many have worked with us for decades without ever being asked for formal identification. These requirements are being applied across the profession and are designed to help protect Australia’s financial system from misuse by criminals.
What information is required will depend on your personal circumstances and the services being provided.
For some clients, it may simply be a form of photo identification. For others, particularly those operating through companies or trusts, we may need additional documentation that helps confirm ownership and control of a structure. Our approach is to keep the process as straightforward as possible, explain what’s required and only request what is necessary.
However, it is also important to note that not every accounting service is captured. Routine work such as preparing tax returns, preparing financial statements or providing general tax advice may not, by itself, trigger AML/CTF obligations. The requirements depend on the specific services being provided.
Most importantly, there is nothing you need to do unless we contact you.
If additional information is required, we’ll explain exactly what we need, why we need it and the secure options available for providing it.
Common Questions:
I’ve been a client for years. Why is this being asked for now?
From 1 July 2026, certain professional services businesses, including accountants that provide designated services, will be regulated under Australia’s AML/CTF regime. This means some existing clients may be asked to provide client identification and information that has not previously been required.
What documents might be requested?
This will vary depending on your circumstances, but common examples include:
- Driver license or passport
- Confirmation of your residential address
- Company or trust documents
- Details of directors, trustees or business owners
Not every client will be asked for the same information.
Does this apply to all clients?
Not necessarily. The requirements depend on the services being provided and the circumstances involved. If we need additional information from you, we’ll let you know.
Will this delay my work?
In most cases, no. Providing requested information promptly simply helps us complete the necessary checks and keep your work moving forward.
What if I’m unsure why something has been requested?
Please ask your client advisor. By all means, we are happy to explain why the information is needed, how it will be used and whether there are any alternative documents that may be suitable.
We understand these requirements are new and we’re always happy to explain why information is needed and how it will be used.
Official AUSTRAC guidance confirms that the reforms extend AML/CTF regulation to certain high-risk services provided by accountants, lawyers, conveyancers, trust and company service providers, real estate professionals and other newly regulated entities from 1 July 2026.
Audits are increasing from the ATO and Victorian State Revenue Office. Read more about it here and how you can protect your self and your business from a nasty surprise.
Published September 2026
The information provided in this article is general in nature only and does not constitute financial advice.