From 1 July 2026, the way we begin working with you is changing. New anti-money laundering and counter-terrorism financing laws (the AML/CTF reforms, often called the “Tranche 2” reforms) now apply to law firms across Australia, including ours. In practice, this means we will ask you to confirm your identity, and sometimes a few questions about your matter, before we can act for you.
If you have been a client of Hendersons Legal for years, this may feel new. It is not personal, and it does not mean we doubt you. It is now the law, and every law firm, conveyancer, accountant and real estate agent in the country has to do the same. This article explains what we will ask for, and why.
What are the new AML/CTF laws?
The Anti-Money Laundering and Counter-Terrorism Financing Act has been in place since 2006, but until now it mainly applied to banks, casinos and money remitters. The recent reforms extend it to a second group of professions, which is why you will hear them described as the “Tranche 2” reforms.
From 1 July 2026, lawyers, conveyancers, accountants, real estate agents and a handful of other businesses became “reporting entities” regulated by AUSTRAC, the federal agency that oversees financial crime. Australia is one of the last developed countries to bring legal and property professions into this system. The aim is to make it harder for criminals to use property purchases, company structures and trust accounts to hide or move illegal money.
Why are you asking me for identification?
When we provide certain services (the law calls them “designated services”), we are required to carry out customer due diligence, or CDD. In plain terms, we have to know who our client really is before we help you buy or sell a property, buy or sell a business, set up a company or trust, or handle money on your behalf.
AUSTRAC puts it simply: these businesses “have a legal obligation to collect information about you before they can provide services to you.” The checks are not about suspicion. They protect you, the firm and the wider community from fraud and financial crime. You can read AUSTRAC’s own plain-English explanation here: Why you might be asked for ID.
What will you need from me?
For most clients, this is quick. We will generally ask for:
- Proof of identity, such as a current passport or driver licence (and sometimes a second document).
- Confirmation of your residential address.
- For companies, trusts or businesses, details of the entity and the people who own or control it.
- Where money is involved, some understanding of where the funds are coming from.
Higher-risk situations, for example matters involving overseas parties or unusual funding, may call for a few extra questions. We will always explain why we are asking. Your information is protected under the Privacy Act 1988, and we store it securely.
How we make verification simple, with InfoTrack
We know nobody enjoys paperwork, so we have invested in technology to keep this simple. Hendersons Legal uses InfoTrack, an Australian platform used across the legal and conveyancing profession, to manage client onboarding and identity verification in line with our AML/CTF obligations.
In practice, you may receive a secure link that lets you confirm your identity online, often straight from your phone, without coming into the office. The system asks only the questions relevant to your matter and records everything securely for our compliance file. For many clients the whole process takes a few minutes.
Will you keep checking after we start?
The new laws ask us to take an ongoing approach rather than a single check at the start. For most clients this is invisible and nothing further is needed. Occasionally, if your circumstances or the nature of your matter change, we may need to update our records. In other words, we are not asking once and forgetting. We keep your file current so we stay compliant throughout your matter.
Do I have to provide my ID twice?
If you are buying or selling a property, you may deal with both a real estate agent and us, and both of us now have AML/CTF obligations. To save you repeating the same checks, we offer reliance arrangements with selected real estate agents.
Under a reliance arrangement, one business can rely on the customer identification another has already completed, through a formal written agreement called a CDD arrangement (set out in section 37A of the AML/CTF Act). In practice, if your agent has already verified your identity for the transaction, we can accept that verification instead of asking you to do it all again.
This means less duplication for you and a smoother run from signing the contract to settlement. A few conditions apply. The agreement must be in writing, we need to be satisfied the agent has proper AML/CTF systems in place, and we stay responsible for meeting our obligations. Where a reliance arrangement is available for your matter, we will let you know and sort out the details with your agent.
Frequently asked questions
Why do I need to provide ID if I have been a client for years?
The new laws apply to existing clients as well as new ones, with no exception for long relationships. AUSTRAC specifically notes that the obligation includes long-term customers. We value your trust, and these checks are simply the law applying to everyone equally.
What documents will I need?
Usually a current passport or driver licence, and sometimes a second form of ID. If you are dealing with us through a company, trust or business, we will also ask for details of that entity and the people behind it. We will tell you exactly what is needed for your matter before you start.
Is my personal information safe?
Yes. Any information you give us is protected under the Privacy Act 1988, and we store it securely. We collect only what the law requires and use it for compliance purposes connected to your matter.
What happens if I do not provide identification?
We understand the checks can feel like a hassle, but we are not able to provide the relevant service without completing them. If we cannot verify a client’s identity, we cannot act. If you have concerns about a particular document, talk to us, as there is usually a sensible alternative.
Does this apply to every matter, or only property?
The requirements apply when we provide a “designated service,” which covers much of what we do, including conveyancing, business sales, and setting up companies, trusts and estates. Not every enquiry triggers a full check, and we will only ask for what is needed for the work you have asked us to do.
Talk to us
If you have questions about the new AML/CTF requirements, or what you will need for your matter, please call our office on (03) 9629 2211 or get in touch through our enquiry form. We are happy to walk you through it.
This article is general information only and not legal advice. For advice about your situation, contact Hendersons Legal on (03) 9629 2211 or via our enquiry form.
