Legal
AML and CTF Legislation
McCarthy Durie Lawyers is regulated under Australia's anti-money laundering and counter-terrorism financing laws. Here is what that means for you as our client.
Last updated: 7 August 2026
About the AML/CTF Laws
The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) ("AML/CTF Act") and its associated Rules are designed to detect and deter money laundering and the financing of terrorism. Following amendments made by the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth), Australian law firms that provide certain "designated services" became regulated reporting entities from 1 July 2026.
McCarthy Durie Lawyers is enrolled with AUSTRAC (the Australian Transaction Reports and Analysis Centre), Australia's AML/CTF regulator and financial intelligence unit, and must comply with the obligations the AML/CTF Act imposes on reporting entities.
Designated Services
Many of the services law firms commonly provide are "designated services" under the AML/CTF Act. These include (among others):
- Assisting with the buying, selling or transfer of real estate
- Assisting with the buying, selling or transfer of a business or body corporate
- Receiving, holding and disbursing money or other property in the course of providing legal services (including through our trust account)
- Assisting with the creation or restructuring of companies and other legal arrangements, including trusts
- Acting as, or arranging for a person to act as, a nominee director, nominee shareholder or similar position
- Providing a registered office or principal place of business address for a company or legal arrangement
When we provide a designated service, the AML/CTF Act requires us to take the steps described below.
Client Due Diligence: Verifying Your Identity
Before we can provide a designated service, we must carry out customer due diligence ("CDD"), sometimes referred to as "Know Your Client" or KYC. This means we must collect and verify information establishing:
- Individuals: your full name, date of birth and residential address, verified against reliable and independent documents such as a driver's licence or passport, or by electronic verification
- Companies: the company's details and the identity of its directors and beneficial owners (generally, individuals who ultimately own or control 25% or more of the company)
- Trusts, partnerships and other arrangements: details of the arrangement (such as the trust deed) and the identity of trustees, beneficiaries, settlors, partners and controllers as applicable
- Agents and representatives: the identity and authority of any person acting on behalf of a client
In some circumstances we must also make enquiries about your source of funds or source of wealth, for example where a transaction involves substantial funds. We appreciate that these questions can feel intrusive; they are required by law and are asked of all clients in equivalent circumstances.
Ongoing Due Diligence
Our obligations do not end once your identity is verified. The AML/CTF Act requires us to conduct ongoing customer due diligence for the duration of our retainer. This may mean we ask you to re-verify or update your information from time to time, particularly for long-running matters or where your circumstances change.
If Verification Cannot Be Completed
We are prohibited from providing a designated service until required CDD has been completed. If we cannot obtain or verify the required information:
- We may be unable to commence acting for you, or may have to cease acting for you
- Settlements or transactions may be delayed
- We may be required to make reports to AUSTRAC
Providing your identification documents and information promptly when requested helps us avoid delays to your matter.
Reporting Obligations
As a reporting entity, the firm must report certain matters to AUSTRAC, including suspicious matter reports where we form a relevant suspicion on reasonable grounds. The AML/CTF Act's "tipping off" provisions may prohibit us from telling you (or anyone else) that a suspicious matter report has been made or is required. These obligations operate alongside, and in limited respects override, our usual duties of confidentiality. Legal professional privilege is preserved; we are not required to disclose privileged communications.
Reliance Arrangements
In some transactions, the AML/CTF Act permits reporting entities to rely on customer due diligence carried out by another reporting entity (for example, a real estate agent or accountant involved in your transaction) under a formal reliance agreement. Where such an arrangement is in place, we may share or receive KYC information as necessary to comply with it, as described in our Privacy Policy.
How Your Information Is Handled
Personal information collected for AML/CTF purposes is collected, held, used and disclosed in accordance with the Privacy Act 1988 (Cth) and our Privacy Policy. We are required by the AML/CTF Act to retain CDD records for at least seven years.
More Information
For more information about Australia's AML/CTF regime, visit the AUSTRAC website at www.austrac.gov.au.
Contact
If you have any questions about our AML/CTF obligations or the information we have requested from you, please contact us:
- Telephone:
- Email:
- Postal address: GPO Box 789, Brisbane QLD 4000
Liability limited by a scheme approved under Professional Standards Legislation.