Law Society NT

Anti-Money Laundering / Counter Terrorism Financing

  • Updated on 15 April, 2025

What is the new Anti-Money Laundering/Counter Terrorism Financing law?

On 10 December 2024, the Anti-Money Laundering/Counter Terrorism Financing Amendment Act 2024 (Cth) (AML/CTF Amendment Act) received Royal Assent. The AML/CTF Amendment Act brings about significant reform to Australia’s existing AML/CTF regime and the Anti-Money Laundering/Counter Terrorism Financing Act 2006 (Cth) (AML/CTF Act).

The AML/CTF regime is designed to protect Australia’s financial system and prevent criminals from using legitimate activities to move and launder illicit funds. It also serves the purpose of ensuring that Australian systems meet the standards set by the international financial crime watchdog, the Financial Action Task Force (FATF).

Since 2006, the AML/CTF Act has regulated financial and gambling sectors. The AML/CTF Amendment Act reforms expand this regime to include a larger number of entities, known as ‘tranche two’ entities. These entities have been identified as having a higher risk of exploitation by those looking to launder money and includes legal professionals and other professional service providers such as real estate agents and accountants. The new regime also makes changes to the way businesses are required to comply with their obligations.

The Federal Attorney-General’s department (AGD) is responsible for the regulation of this regime through AUSTRAC. They have published a current compilation of the AML/CTF Act which includes the changes introduced by the AML/CFT Amendment Act, though some of those changes have not yet come into force (AML/CTF Act Future Compilation).

It is noted that there may well be further amendments to the AML/CTF Act before it all provisions come into force and as such the AML/CTF Act Future Compilation is subject to change.

 

How does the AML/CTF Act apply to legal practitioners?

The AML/CTF Act will introduce new anti-money laundering obligations to some legal services, while others will not be caught by the new regime. Services caught by the Act are termed ‘designated services’. The AML/CTF Act Future Compilation specifies nine designated services relevant to legal; practitioners, being:

  • Real Estate Transactions
    • Buying, selling or transferring real estate; or
    • Planning and execution of a transaction to buy, sell or transfer real estate.
  • Business and Corporate Transactions
    • Buying, selling or transferring legal entities (body corporates or legal arrangements); or
    • Planning and execution of a transaction to buy, sell or transfer legal entities.
  • Management of Funds and Assets
    • Receiving, holding, controlling or managing client funds and/or property, such as their money, accounts, securities or virtual assets.
  • Corporate Finance
    • Acting in a transaction for equity or debt (re)financing relating to a body corporate or legal arrangement.
  • Shelf Companies
    • Selling or transferring a shelf company.
  • Corporate Structuring
    • Acting in the creation or restructure of a body corporate or legal arrangement; or
    • Planning and execution of the creation or restructure of a body corporate or legal arrangement.
  • Acting in Key Corporate Roles
    • Acting as a director, secretary, power of attorney of a body corporate, a partner or a trustee of some express trusts; or
    • Arranging another person to act as such.
  • Nominee Shareholders
    • Acting as a nominee shareholder; or
    • Arranging another person to act as such.
  • Registered Office Services
    • Providing a registered office address or principal place of business of a body corporate or legal arrangement.

 

There are some services or circumstances which are expressly excluded from being designated services, as set out in the AML/CTF Act Future Compilation. For more information about designated services, see the Legal Institute of Victoria’s designated services guidance.

 

When will these new obligations commence?

The commencement of the new provisions will be staged over 2026. Solicitors will be required to assess the services they provide and any associated money laundering and terrorism financing risks and enrol with AUSTRAC.

Solicitors providing designated services can begin to enrol on 31 March 2026.

Obligations for solicitors providing a designated service will commence on 1 July 2026. For solicitors to be compliant with their obligations by the time they commence, it is expected that significant preparation will be required prior to 1 July 2026.

Solicitors should familiarise themselves with the obligations under the AML/CTF Act Future Compilation now.

 

How does the AML/CTF Act apply to my legal practice?

All legal practitioners will need to undertake an assessment as to whether their law practice can be considered to provide designated services. Legal practices who provide designated services will need to register with AUSTRAC and comply with the following obligations:

  • Establishing an AML/CTF compliance program specifying how the practice complies with the AML/CTF Act;
  • Appointing an AML/CTF compliance officer;
  • Establishing and maintain customer identification and verification services;
  • Reporting certain transactions and suspicious matters; and
  • Keep records in a manner that complies with the AML/CTF Act.

 

If you are a legal practitioner who does not believe the work they currently perform involves designates service, you should still familiarise yourself with the AML/CTF Act Future Compilation and the obligations therein. The Act and the regime therein are broadly construed and subject to amendment and at this stage without official guidance on designated services. You should carefully assess your practice.

For generalist legal practitioners, you should note that if even a small part of your work falls within the ambit of a designated service, you will be required to establish a compliance program and otherwise comply with the requirements of the AML/CTF Act.

 

If I’m going to be providing a designated service, what can I do to prepare?

Stay informed

Much of the relevant information about the AML/CTF regime is yet to be finalised, including the AML/CTF Rules which are currently available for consultation in draft form. In the meantime, practitioners should familiarise themselves with the AML/CTF Act Future Compilation.

AUSTRAC has recently published its guidance on the ‘tipping off’ offence which came into operation for entities who were already regulated by the AML/CTF Act. Practitioners should familiarise themselves with the offence and relevant guidance, found here.

The Law Society has collated a set of resources below from other regulators around Australia to assist practitioners with answering frequently asked questions and providing more in-depth guidance about AML/CTF compliance.

Familiarise yourself with key principles

Practitioners should begin thinking about how they can educate themselves on money laundering and terrorism financing risk and how they can undertake assessments of that risk within their legal practice.

A significant part of this will involve customer identity due diligence, so practitioners can research best practices for undertaking this verification of identity, including the identification of various corporate structures and high risk persons and locations. 

 

What is the Law Society NT doing about these legal changes?

The AGD first began public consultation on AML/CTF reforms in April 2023 and engaged with various stakeholders in the following months. The Law Society Northern Territory collaborated with the Law Council of Australia (LCA) and other law societies around Australia in formulating responses to the proposed regime changes.

The LCA has engaged extensively in the consultation process to ensure the AML/CTF regime would be balanced and proportionate to the real risk posed by the movement of illegally obtained funds within the legal profession, including providing various detailed written submissions to the AGD during the consultation process. A copy of those papers is available on the LCA website.

The Law Society continues to consult with AUSTRAC through its membership of the LCA dedicated AML/CTF Working Group on the impact of the regime on practitioners and the need for the AML/CTF Rules and Guidance Notes to appreciate the unique professional challenges for lawyers, including balancing their ethical and professional duties and dealing with legal professional privilege.

On 14 February 2025, the LCA provide its submission to AUSTRAC about the draft AML/CTF Rules.

The Society is committed to assisting the profession in the Northern Territory to be ready for these reforms and will continue to update its website with guidance and resources. Once there is more certainty as to the nature and extent of the reforms, the Society will provide further material to practitioners.

 

Where can I find more information?

LCA Guidance

 

AML/CTF Hubs of Other Law Societies

 

Risk Assessments

 

Education Resources