AML & CTF Changes – What It Means for Your Business

From 1 July 2026, new Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) obligations will apply to a wider range of professional services, including accounting firms. These changes are overseen by AUSTRAC and are designed to reduce the risk that Australia’s financial system is used for money laundering, terrorism financing, or other serious financial crime.

For business owners, the practical effect is that accountants may need to ask more questions, collect more information, verify identity and ownership details more formally, keep additional records, and in some cases report certain matters under the AML/CTF rules.

Although the reforms are intended to strengthen the financial system, they also mean extra administration, time, paperwork, and compliance cost for both accounting firms and small businesses.

Why These Changes Are Happening

AML/CTF rules are intended to make it harder for criminals to hide, move, or use money through legitimate business and financial systems. Professional service providers, including accountants, can become part of a transaction chain because they help with business structures, ownership arrangements, entity changes, financial records, and other services that may be relevant to the movement or control of money.

The expanded rules require affected accounting firms to take a more formal role in understanding who their clients are, who owns or controls a business, and whether there are any unusual indicators that may need further attention.

For business clients, this may mean providing identification documents, confirming business details, explaining ownership and control arrangements, paying attention to unusual activity that may require follow-up under the AML/CTF framework, and ensuring information held by the accountant remains current.

Role of AUSTRAC

AUSTRAC is Australia’s AML/CTF regulator. Where required, AUSTRAC receives reports from businesses captured under the AML/CTF rules. Under the expanded obligations, accounting firms are now required to complete checks on their clients, maintain records, and make reports in line with the legislation and AUSTRAC guidance.

Why Accountants Are Affected

Under the expanded rules, accounting firms that provide certain professional services may be legally required to take a more formal role in confirming client identity, business details, ownership structures, and the purpose of certain services.

This does not mean clients have done anything wrong, just that accountants may be legally required to complete additional checks before providing, continuing, or updating certain services.

What Business Owners May Notice

Business owners may notice a more formal process when becoming a new client, changing business details, adding or changing directors, shareholders, trustees, partners, or beneficial owners, or requesting services that involve business structures or financial arrangements.

These processes may include extra questions, additional verification steps, more paperwork, requests for supporting documents, and compliance fees linked to the time and systems needed to meet the new requirements.

Practical Impacts for Clients

More detailed onboarding and client review questions.
Identity verification for individuals connected with a business.
Checks on directors, shareholders, trustees, partners, beneficial owners, and people who control the business.
Requests for additional supporting documents to confirm business structure or authority.
Ongoing review and updating of client information.
More formal record-keeping by the accounting firm.
Possible reporting obligations where the AML/CTF rules require a report to AUSTRAC.
Additional compliance-related fees to cover the extra time, administration, systems, and verification work required.

Costs and Fees

These AML/CTF changes create additional compliance and licensing costs for accounting firms, including out-of-pocket identity check fees per client. The costs generally fall into two categories: hard out-of-pocket costs, such as application or verification fees per entity and per person, and time costs, including the time required to complete checks, maintain records, and manage ongoing obligations.

All new clients and affected existing clients (even those clients who have been with us for many years) must complete an AML/CTF verification process.

Current Individual Verification Fees - minimum charge per person will apply.

Current Client Due Diligence/AML Verification Fees - Entities, including SMSF and trusts: a minimum charge per entity will apply depending on the complexity of the entity and the Client Due Diligence required.

NOTE: Where a trust has a corporate trustee, both the trust and the company must be verified separately.

Ongoing Monitoring Fees

AUSTRAC requires ongoing monitoring of clients and their entities. Industry bodies have indicated that AML/CTF obligations may increase accounting fees by around 2% across the profession. Maclean Partners has taken a pragmatic approach by investing in technology and automation to streamline parts of the ongoing monitoring and compliance process, enabling the ongoing charge to be kept below that level.

Individuals: no separate ongoing charge, as this will generally be incorporated into the entity monitoring arrangements.
Trusts/SMSF etc: no separate ongoing charge, as we are required to complete customer due diligence on each individual trust/SMSF.
Companies: ongoing monitoring charges apply depending on the client’s ASIC management and annual compliance fee arrangement.

Company Monitoring Arrangements and Annual Fees

Companies where we act as the registered office will have their annual ASIC service fee increased from 1 July 2026. This applies to approximately 90% of our corporate clients and passes on an efficiency discount.

Monitoring is required from 1 July 2026 and continuously throughout the year. The annual ASIC invoice will still be issued when the company statement is due. We will conduct the required verifications and customer due diligence processes either at the time of the annual review or before the year’s work commences, whichever is earlier. If the customer due diligence is more complex there may be additional time charged.

Clients who manage their own ASIC or where Maclean Partners is not acting as the ASIC agent, will still receive a customer due diligence fee for any of the designated services performed as covered under the AUSTRAC guidelines. The cost of this will be charged when we prepare your annual tax and accounting fee.

Clients who are billed monthly throughout the year may have their ASIC fee included in their overall fee for the year.

How Your Accountant Will Support You

The aim is to make the extra compliance as straightforward as possible. Your accountant may explain what information is needed, why it is being requested, how it relates to the AML/CTF obligations, and what clients can do to provide the required information efficiently.

Clear communication, practical guidance, and transparent discussion about any additional fees will help business owners understand the changes and avoid unnecessary delays.

How Businesses Can Prepare

Keep company, trust, partnership, and individual ownership records up to date.
Ensure identification documents are current and available when requested.
Be prepared to explain who owns or controls the business.
Allow extra time for onboarding or changes to business details.
Respond promptly to information requests from your accountant or adviser.