Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws have changed, bringing accountants and a range of other professional service providers into the AML/CTF process from 1 July 2026.
For Colledges clients, this may mean some additional questions, identity checks and requests for documentation when we provide certain services.
We understand you may have questions about why we’re asking for information you’ve perhaps provided before, what you need to give us, and what happens to that information once we receive it.
To make things easier, we’ve answered some of the most common questions below.
1. What are the new AML/CTF laws?
Australia has expanded its Anti-Money Laundering and Counter-Terrorism Financing Laws to cover a broader range of professions and businesses, including accountants, lawyers, conveyancers and real estate professionals.
The purpose of the reforms is to make it harder for criminals to use legitimate businesses, professional services and financial transactions to disguise or move illegally obtained money.
2. When did the new AML/CTF requirements start?
The new obligations for newly regulated businesses began on 1 July 2026.
This means AML/CTF compliance is now part of the regulatory environment in which accounting firms such as Colledges Accountants + Advisors operate when providing services covered by the legislation.
3. Do the AML/CTF laws apply to every accounting service?
No. The legislation focuses on particular activities known as “designated services”. For accountants, these can include certain services associated with establishing or restructuring companies and trusts, managing client funds or assets, business transactions and other specified financial activities.
Whether AML/CTF requirements apply will therefore depend on the particular services we’re providing to you.
4. Why is Colledges asking me to verify my identity?
Where the AML/CTF requirements apply, we have a legal obligation to know who we’re dealing with and verify certain information about our clients.
This is referred to as Know Your Customer or KYC. It doesn’t mean there’s a problem with your account or that we have concerns about you. It’s part of the compliance process we’re now required to follow.
5. I’ve been a Colledges client for years. Why do you need to identify me again?
We understand why this might feel unnecessary, particularly if we’ve worked together for many years.
However, the AML/CTF requirements can apply to both new and existing clients. In some circumstances, we may need to obtain new information, update information that we already have, or undertake additional verification to meet our obligations.
6. What identification or information might Colledges ask me for?
Depending on your circumstances and the services we’re providing, we may ask for information such as:
- A driver’s licence, passport or other proof of identity
- Company or business information
- ASIC records
- Trust deeds
- Details of beneficial owners
- Information about the source of funds
- Information about the purpose or nature of a transaction
- Information about other people or entities involved in a transaction.
We will only ask for information relevant to the checks we’re required to undertake.
7. What is a beneficial owner and why do you need to know?
A beneficial owner is generally the individual who ultimately owns or controls a company, trust or other entity.
Knowing who ultimately owns or controls an entity is an important part of AML/CTF compliance because complex business or ownership structures can potentially be used to conceal the identity of the people behind transactions.
We may therefore need to ask questions about your business or ownership structure, even when we’re already familiar with your organisation.
8. Why might you ask where my money has come from?
For certain services or transactions, we may need to understand the source of funds or, depending on the circumstances, other information relating to a client’s financial position.
This can mean asking questions about where money involved in a transaction has come from and requesting supporting documentation. Again, this is not an indication that anything is wrong. It is part of the due diligence we’re required to do.
9. Will you need to verify other people connected to my business or trust?
Possibly. Depending on the entity, ownership structure and service being provided, we may need information about directors, trustees, beneficial owners or other relevant parties.
The exact requirements will vary according to your circumstances.
Related Article: Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF): What the New Laws Mean for You
10. How will my identity be verified?
Verification may be completed using identification documents you provide to us and may also be undertaken electronically.
Our new Terms of Engagement letter will be sent to our clients and explains that electronic verification may involve third-party verification providers and government data sources.
We’ll let you know what information is required and guide you through the process.
11. Is my personal information kept confidential?
Yes. Colledges continues to have strict confidentiality and privacy obligations in relation to client information.
Our Terms of Engagement set out how personal and confidential information is handled, including circumstances where information may be disclosed where required or permitted by law.
AML/CTF compliance doesn’t remove our broader responsibilities to appropriately handle and protect client information.
12. What happens if I don’t provide the information requested?
In some circumstances, we may be unable to commence or continue providing a particular service until the required AML/CTF checks have been completed.
Not having the necessary documents or information available may therefore delay work. The easiest approach is to respond to requests for AML/CTF information as promptly as possible. If you’re unsure what we’re asking for or why we need it, please speak to us.
13. Does being asked for extra information mean Colledges considers me a high-risk client?
No. A request for identification or additional information does not, by itself, mean that we consider you or your business suspicious or high risk.
AML/CTF legislation requires regulated businesses to take a risk-based approach and undertake appropriate customer due diligence.
These checks are becoming a normal part of working with accountants and other regulated professional service providers.
14. Could Colledges need to ask me more questions in the future?
Yes. AML/CTF compliance isn’t necessarily a one-off identity check. Information may need to be reviewed or updated over time, particularly if your circumstances change, your business structure changes, or we provide you with different services.
You may therefore occasionally hear from us asking you to confirm or update information.
15. What do I need to do now?
For most clients, there’s no need to worry or take any action. If we need additional information or identification from you, we’ll explain what we require and help make the process as straightforward as possible. The most important thing is to respond promptly to requests and let us know if you’re unsure why particular information is needed.
We appreciate your patience and assistance as we work through these changes and are doing all we can to mitigate any impact on turnaround times. These new requirements aren’t about changing the relationship we have with our clients. They’re about meeting our obligations under Australian law, while continuing to provide the advice and support you expect from Colledges.
If you have questions about the new AML/CTF requirements or how they may affect you, please contact the Colledges team on (03) 9851 6500 or email us at hello@colledges.com.au.
