From 1 July 2026, significant changes are coming that will affect how accountants, lawyers, and real estate professionals work with their clients.
Up until now, these obligations have largely sat with banks and financial institutions. But under the expansion of Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime, often referred to as Tranche 2 reforms, these responsibilities will now extend to a broader group of professionals, including accounting firms like Colledges.
Why these changes are happening
The goal is to strengthen Australia’s ability to detect and prevent financial crime. By expanding the rules beyond banks, financial services, casinos, digital currency and bullion dealers, regulators are focussing more closely on where illegal activity could previously go undetected.
As part of this, businesses providing certain services must now register with AUSTRAC (the Australian Transaction Reports and Analysis Centre , implement compliance systems, and carry out client verification procedures.
What this means for you as a Colledges client
You may notice some changes in how we work with you. Even if you’ve been a long-standing client, we may now need to:
- Verify your identity again
- Request additional documentation
- Ask questions about the nature of your business or transactions
This can feel repetitive, especially if you’ve already provided information in the past. But under the new laws, we are required to apply these checks consistently across all clients, new and existing.
Therefore, we must follow the regulations, and we appreciate your understanding as we do.
What are “designated services”?
The AML/CTF laws apply when we provide certain services, known as designated services. These are specific activities that are considered higher risk from a financial crime perspective.
For accounting firms, this can include services such as:
- Assisting with the creation or restructuring of companies or trusts
- Acting as a registered office or principal place of business
- Managing client funds or assets
- Providing advice or assistance with buying or selling a business
- Facilitating transactions involving real estate or other significant assets
- Acting on behalf of a client in financial transactions
If we are providing any designated services, we are legally required to carry out identity checks and maintain records in line with AUSTRAC requirements.
What kind of information might be required?
Depending on the service, we may ask for:
- Proof of identity (such as a driver’s licence or passport)
- Company documents (ASIC extracts, trust deeds, etc.)
- Details about beneficial ownership
- Information about the source of funds
- The purpose and nature of transactions
In some cases, we may also need to verify third parties connected to your business. Please note that all your information is securely held and stored.
What happens if information isn’t provided?
Under the legislation, we are not able to proceed with certain services unless we have completed the required checks.
This means there may be delays if documentation isn’t available, or in some cases, we may not be able to complete the designated service for you. We know this isn’t ideal, but it is part of the compliance framework we must operate within.
How Colledges is approaching this
At Colledges, our focus is on making this process as smooth and straightforward as possible.
Therefore we are:
- Implementing clear and secure systems for collecting information
- Minimising disruption to your day-to-day operations
- Communicating clearly about what’s needed and why
- Supporting you through the process with practical guidance
While the regulations are strict, our approach is to keep things simple, respectful, and efficient.
A shared responsibility
These changes are part of a broader shift across the professional services landscape world-wide. While they do introduce additional steps, they also help protect the integrity of Australia’s financial system.
For you as a client, it’s about transparency and ensuring your business is operating within a compliant framework.
For us, it’s about meeting our obligations while continuing to provide the advice and support you rely on.
Please contact us if you have any questions
From 1 July 2026, AML/CTF compliance will become part of how we work together. This isn’t a reflection of trust, it’s the new requirement and law. If you have any questions about what’s required or how this affects you, we’re here to help.
Get in touch with the Colledges team if you’d like to understand how these changes apply to your situation. Call us on (03) 9851 6500 or email us at hello@colledges.com.au.
