Australia's anti-money laundering and counter-terrorism financing framework is undergoing its most significant expansion since the legislation was introduced in 2006. Known as the Tranche 2 reforms, these changes bring solicitors, conveyancers, accountants and other professional service providers within the scope of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for the first time.

The reforms are overseen by AUSTRAC - Australia's financial intelligence and regulatory agency - and bring Australia into alignment with international standards set by the Financial Action Task Force (FATF). The commencement date is 1 July 2026.

At Farrell Goode, we want to ensure our clients understand what these changes mean in practical terms and why they are necessary. This is not a change to how we provide legal advice - it is a change to the information we must collect before we can do so.

These are standard legal requirements

We want to be clear with our clients: identity verification is not a reflection of any concern about you personally. These checks are a standard legal requirement that will apply across the legal profession nationally - to every solicitor, conveyancer and legal practice in Australia - from 1 July 2026.

Many of our clients will already be familiar with similar requirements from their bank or financial institution. The Tranche 2 reforms simply extend the same framework to legal service providers.

What information will we need from you?

The information required will depend on the nature of the legal matter and who we are acting for. As a general guide:

All information collected will be handled in strict accordance with applicable Australian privacy legislation and our firm's Privacy Policy. It will not be shared except where required by law or AUSTRAC.

Which legal services are affected?

The AML/CTF reforms apply to what AUSTRAC terms "designated services" provided by legal practitioners. At Farrell Goode, this will affect matters including:

Property and conveyancing - buying, selling and transferring property, including residential conveyancing and commercial transactions.

Business and commercial law - company formations, business sales and acquisitions, commercial leases and agreements involving significant financial transactions.

Wills, estates and succession planning - estate administration, powers of attorney, and succession planning involving property or financial assets.

Family law property matters - property settlements and financial agreements under the Family Law Act.

Criminal law, general advice and matters that do not involve financial transactions or property dealings may fall outside the scope of the regulations, but we will advise you on a matter-by-matter basis.

Ongoing obligations

Identity verification is not a one-time exercise. If your circumstances change - including changes to your name, address, business structure, ownership or control of an entity - you will be required to notify us so we can update our records. This is an ongoing obligation under the AML/CTF framework.

What to expect from Farrell Goode

We will be contacting existing clients ahead of the 1 July 2026 commencement date to confirm any documentation we may need. For new clients, identity verification will form part of our standard matter-opening process at each of our offices.

We have structured our verification process to be as straightforward and unobtrusive as possible. In most cases, providing a copy of your driver's licence or passport is all that will be required for individual clients.

If you have any questions about the new requirements, what documentation you may need to provide, or how your information will be stored and protected, please contact your nearest Farrell Goode office.