CLIENT UPDATE
New anti-money laundering laws from 1 July 2026
From 1 July 2026, the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AML) is being extended to law firms under the reforms commonly known as “Tranche 2.” From that date, Marino Law becomes a reporting entity supervised by AUSTRAC, the Commonwealth financial intelligence regulator and must meet anti-money laundering obligations whenever it provides a “designated service.”
This is a national change affecting Australian law firms, conveyancers, accountants and real estate agents. Below we explain what is changing, what it means for you in practice, including the identity and screening checks now required and how Marino Law will make the process as straightforward as possible.
What is changing
These laws have applied to banks for years. From 1 July 2026 they also extend to professionals who help clients move money or establish structures, including lawyers and conveyancers. AML does not regulate everything a law firm does, only a defined set of activities called “designated services”.
What is a “designated service”?
Designated services are a specific list of activities set out in the legislation. These predominately involve real property transaction where we are acting on the purchase, sale or transfer of real estate; receiving, holding or managing money or other assets on your behalf and helping to create or restructure companies and trusts. Much of our other work, such as general legal advice, falls outside AML. Importantly, these obligations can arise during the early, preparatory stages of a matter and not only at completion or settlement.
Verifying your identity (VOI)
Before Marino Law provides a designated service, we are required to identify and verify who we are acting for. For an individual, that means confirming your full name, date of birth and residential address against reliable, independent documents, usually a current passport or driver’s licence and sometimes a second document.
Many of our clients will already recognise this as “VOI,” the verification-of-identity step used in property settlements. AML applies a similar process more broadly across designated services. Where you instruct us through a company or trust, we also need to understand the structure and identify its beneficial owners, being the individuals who ultimately own or control the entity (generally a 25% or greater interest), along with the people authorised to give us instructions. In most cases this can be completed quickly, either in person or electronically.
Screening searches
As part of these checks, we are also required to screen clients against publicly available government and international lists. In practice, this means checking whether a client (or a beneficial owner) appears on sanctions lists or is a “politically exposed person” (a PEP) being someone who holds, or is closely connected to, a prominent public position, which the law treats as higher risk.
For the overwhelming majority of clients these searches return nothing. If a search does flag something, it does not mean you have done anything wrong; it simply means we may need to ask a few additional questions, or carry out some further checks, before we can proceed.
Asking about the source of funds
For most matters, verifying identity and completing screening is all that is required. For some higher-value or more complex transactions, we may also need to understand the source of the funds being used. For example, savings, a loan, the proceeds of a sale, or a gift. We will only ask where the law requires it and we will always tell you exactly what is needed.
If you are already a client
If you are an existing client, there is nothing you need to do today. These checks are triggered only when you next ask Marino Law to act on a new designated service, not for work we have already completed for you. The one helpful step you can take now is to make sure your photo identification has not expired and your contact details are current and any documentation evidencing your legal entity (such as a company, trust or partnership) is readily available, as those are the items most likely to need updating.
If you are engaging Marino Law for a new matter
If you are thinking of instructing Marino Law on something new, please don’t let these requirements give you pause. When you engage us, we will tell you precisely what is needed, usually a single, short step at the very start of your matter. Having current photo identification ready will help us begin without delay.
How Marino Law will help
We have spent months preparing for these reforms so that you don’t have to. We have built the new identity and screening steps into the way we open files, so they add as little friction as possible to your matter. Our role is to handle the detail, explain anything that is unclear, and keep your matter moving smoothly, exactly as you would expect from Marino Law.
If you have any questions about how these changes may affect you, please contact our office on 07 5526 0157. We are happy to talk it through with you.
Marino Law (Property & Conveyancing)
Phone 07 5526 0157 | Mermaid Beach, Gold Coast, Queensland
This article is general information only and is not legal advice. Please contact us for advice about your specific circumstances.
