AML/CTF compliance at Dundas Lawyers

From 1 July 2026, Australian law firms providing “designated legal services” must comply with expanded Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) obligations.  These obligations arise under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AML/CTF Act), as amended by the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth), together with the Anti-Money Laundering and Counter-Terrorism Financing Rules 2025 (Cth) (AML/CTF Rules).  These obligations are aimed at preventing legal services from being misused for money laundering, terrorism financing, proliferation financing and other serious financial crimes.  

So just what are designated services?

The AML/CTF obligations do not apply to every service provided by a law firm.  They only apply when a firm provides a “designated service” within the meaning of section 6 of the AML/CTF Act.  These services include:

• certain work involving the sale, purchase or transfer of real estate, and
• managing client money, accounts, securities or other assets; and establishing, operating or managing companies, trusts and other legal arrangements.

What Designated Services does Dundas Lawyers provide?

Dundas Lawyers provides the following Designated Services to our clients:

1. assisting a person in the planning or execution of a transaction, or otherwise acting for or on behalf of a person in a transaction, to sell, buy or otherwise transfer real estate, where the service is provided in the course of carrying on a business;
2. assisting a person in the planning or execution of a transaction, or otherwise acting for or on behalf of a person in a transaction, to sell, buy or otherwise transfer a body corporate or legal arrangement, where the service is provided in the course of carrying on a business;
3. receiving, holding and controlling (including disbursing) or managing a person’s money; or accounts; or securities and securities accounts; or virtual assets; or other property;
4. assisting a person in organising, planning or executing a transaction, or otherwise acting for or on behalf of a person in a transaction, for equity or debt financing relating to: a body corporate; or a legal arrangement;
5. assisting a person to plan or execute, or otherwise acting on behalf of a person in, the creation or restructuring of: a body corporate; or a legal arrangement; in the course of carrying on a business;
6. providing a registered office address or principal place of business address of a body corporate or legal arrangement, in the course of carrying on a business.

Therefore, Dundas Lawyers has to comply with the AML/CTF Rules.  Whether the obligations apply will depend on the particular service being provided, rather than simply because a person has engaged a lawyer.

What will this mean for our clients?

Under Part 2 of the AML/CTF Act, particularly sections 28 – 32, reporting entities must undertake initial and ongoing customer due diligence and, where required, enhanced customer due diligence.  The detailed requirements are contained in Parts 5 and 6 of the AML/CTF Rules.

Depending on the services being provided, Dundas Lawyers may need to:

• verify a person’s identity and contact details;
• identify the individuals who ultimately own or control a company, trust or other entity;
• understand the purpose and nature of your matter or business relationship;
• obtain information about the source of funds or source of wealth; and
• request further information where required by law or by our AML/CTF policies.

The requirement to understand the nature and purpose of a business relationship or occasional transaction is addressed in section 6-9 of the AML/CTF Rules.  Source-of-funds and source-of-wealth enquiries may be required as part of initial or enhanced customer due diligence, including under sections 6-20 and 6-21 of the AML/CTF Rules.

The information required will depend on the nature and risk profile of the matter.  For many clients, the process will be similar to an identity check conducted by a bank or other financial institution.

Dundas Lawyers has selected RealAML

To help us complete our obligations under the AML/CTF Rules securely and efficiently, we have selected RealAML, a best of breed third-party identity-verification platform.

Clients may therefore receive an email, text message or secure link asking them to complete a RealAML verification on behalf of Dundas Lawyers.  This is a legitimate part of our client onboarding and ongoing AML/CTF compliance process.  Depending on the checks required, clients may be asked to provide an identity document, take a live photograph or “selfie”, confirm personal information, or provide information about an entity or transaction.

RealAML enables checks such of government-issued identification, address and biometric identity verification.  More information about its services is available on the RealAML website.

Our handling of personal information collected for this purpose is subject to the Privacy Act 1988 (Cth).  Read our Privacy Policy here.

Clients are encouraged to confirm any request for AML Verification purportedly from Dundas Lawyers by telephone to the usual numbers before completing any such request. 

Updated correspondence

Our engagement letters, costs agreements and related client correspondence have been updated to explain:

• our obligations under the AML/CTF regime;
• the information and documents we may require;
• our use of third-party verification providers, including RealAML; and
• circumstances in which we may be unable to commence or continue providing certain services until the required checks are completed.

These changes form part of our compliance with the new laws.

Helping the process run smoothly

Clients can help avoid delays by responding promptly to verification requests and ensuring that identification documents are current and readily available. 

Additional information may be required for companies, trusts, complex ownership structures, transactions involving client funds, politically exposed persons or matters assessed as presenting a higher money-laundering or terrorism-financing risk.  This is because enhanced customer due diligence in higher-risk circumstances is required by section 32 of the AML/CTF Act and Division 4 of Part 6 of the AML/CTF Rules.

Further information

If you need assistance with completing any request for identity verification, please contact us for assistance.  

Disclaimer

This article contains general commentary only.  You should not rely on the commentary as legal advice.  Specific legal advice should be obtained to ascertain how the law applies to your particular circumstances

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