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Brittany Birch
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The Australian Government is progressing reforms to expand AUSTRAC’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime, with accounting and professional services firms expected to be brought into scope from 1 July 2026.
These changes will apply to a range of services commonly provided to clients, including entity structuring, company and trust administration, and certain transaction-related activities.
Under the proposed regime, firms providing designated services - such as assisting with the creation or restructuring of entities, facilitating transactions, or acting in certain official capacities - will be required to meet enhanced regulatory obligations.
A key component of this will be more robust client verification processes, supported by formalised systems and ongoing monitoring requirements.
In practice, most clients will notice an increase in the level of verification and documentation required, particularly when establishing or updating structures, or undertaking certain transactions.
This may include:
• More comprehensive identity verification (including digital verification tools)
• Screening against politically exposed persons (PEP) and sanctions lists
• Additional information requests in relation to structures or transactions
• Periodic reviews to ensure information remains current
For many clients, these changes will feel like an extension of processes already in place - however, they will be more structured and consistent across all engagements.
At LHP Partners, we are already preparing for these changes and will be implementing enhanced systems to support a smooth transition ahead of the 1 July 2026 commencement.
While we currently undertake identity verification as part of our onboarding and governance processes, these reforms will see the introduction of more sophisticated digital verification tools, allowing us to meet regulatory requirements efficiently while maintaining a seamless client experience.
Our focus is to ensure these changes are implemented thoughtfully - minimising disruption while maintaining the high level of service and discretion our clients expect.
These reforms reflect a broader global shift toward greater transparency and accountability across financial systems.
For clients with more complex structures or transactions, this reinforces the importance of maintaining well-documented and clearly understood arrangements.
We will continue to keep clients informed as further guidance is released and implementation approaches.
Ahead of these changes, it may be timely to review your structures and ensure documentation and governance are in order—particularly where transactions or changes are anticipated.
If you would like to discuss how these reforms may apply to your circumstances, our team is available to assist.
