The AML/CTF reforms 2026 will bring major compliance changes for parts of the legal, property, and business services space from 1 July 2026. For many firms and clients, the real issue is not just that the law is changing. It is understanding who is affected, what work is caught, and what needs to happen before the new rules start.
This guide breaks down the key dates, the services most likely to be affected, and what the reforms may mean in practice for lawyers, conveyancers, businesses, and clients involved in property and business transactions. It is written to help you get clear on the scope of the changes and prepare early.
What Are the 2026 AML/CTF Reforms?
The AML/CTF reforms 2026 expand Australia’s anti-money laundering and counter-terrorism financing regime to additional industries that have historically sat outside the framework. From 1st July 2026, certain services provided by lawyers, conveyancers, accountants, real estate professionals, trust and company service providers, and dealers in precious metals, stones, and products will fall within the regime where they meet the definition of a designated service.
In practical terms, that means more businesses will need to meet AML/CTF obligations such as enrolment, customer due diligence, AML/CTF program requirements, staff training, compliance governance, and suspicious matter reporting where required.
For the legal and property sectors, this is one of the most significant compliance changes in years. It is likely to affect how some matters are opened, what information must be collected, and what checks need to happen before certain transactions can proceed.
When Do the Changes Start?
The rollout happens across a few key dates, so it is important to separate the broader reform package from the start date that matters most for newly regulated sectors.
For lawyers, conveyancers, accountants, real estate professionals, and other newly captured service providers, the main date to focus on is 1 July 2026.
Here is the simple timeline:
- 31 March 2026: major reform changes began for existing reporting entities already regulated under the AML/CTF regime.
- 31 March 2026: AUSTRAC opened enrolment for newly regulated sectors, including lawyers and conveyancers that provide designated services.
- 1 July 2026: AML/CTF obligations begin for newly regulated entities that provide designated services under the expanded regime.
In short, the legal framework is already in motion, but 1 July 2026 is the date when many newly regulated professional service providers will need to be ready in practice. That means firms should not treat this as a last-minute compliance task. The preparation work needs to happen before that date.
Who Is Affected by the 2026 AML/CTF Reforms in Australia?
The AML/CTF reforms in Australia expand the regime to a broader group of professional and transaction-based service providers. AUSTRAC identifies the newly regulated sectors as including;
- Lawyers
- Conveyancers
- Accountants
- Real estate professionals
- Trust and company service providers
- Dealers in precious metals
- Dealers in precious stones
- Dealers in precious products
- Some virtual asset-related service providers
That said, being part of one of these industries does not automatically mean every service a business provides will be caught.
The key question is whether the business provides a designated service under the AML/CTF regime. For lawyers and similar professional service providers, that distinction is critical. The reforms apply to certain types of work, not to every matter handled by the profession as a whole.
What Legal Work Will Be Caught by the 2026 AML/CTF Reforms?
No. The reforms do not apply to all legal work. For lawyers, the key question is whether the firm provides a designated service under the AML/CTF regime.
The legal work most likely to be caught includes services linked to real estate transactions, business sales, company or legal structure setup or restructure, shelf company transfers, financing arrangements for bodies corporate or legal arrangements, and certain nominee or control roles.
That means firms need to assess the type of work they do, rather than assume the reforms apply across the board. For clients, the practical effect may be more checks at the start of matters involving property, business, or structural transactions from 1 July 2026.
What Do Businesses and Law Firms Need to Do Before 1 July 2026?
Businesses and law firms that will provide designated services from 1 July 2026 should start preparing well before the new obligations begin. The main priority is making sure the right systems, people, and processes are in place before the reforms take effect.
Before 1 July 2026, affected businesses should make sure they have:
- AUSTRAC enrolment completed, where required
- An AML/CTF program in place before designated services are provided
- An AML/CTF compliance officer appointed
- Staff training completed so relevant team members understand their obligations
- Customer due diligence processes ready to use at the start of affected matters
- Internal processes for identifying and reporting suspicious matters, where required
The right preparation should make the transition easier, reduce compliance risk, and help firms avoid delays once the new regime starts.
What Will Change for Clients in Property and Business Transactions?
For clients, the biggest change is likely to be what happens at the start of a matter. Where the work falls within the AML/CTF regime, clients may need to provide more information earlier so the firm can complete its compliance steps before the transaction progresses.
Clients involved in property and business transactions may see:
- More identity checks before work begins
- More questions about ownership and control, especially where companies, trusts, or other legal arrangements are involved
- Earlier document requests to support due diligence and risk assessment
- Extra compliance steps at the front end of the matter, before key transaction work moves ahead
- Possible delays if the required information is missing or issues are identified late
In practice, that means preparation and timing may matter more than before. Getting documents and background information in order early should help transactions move more smoothly once the new rules apply from 1 July 2026.
How Can Astraea Law Help?
The 2026 AML/CTF reforms are likely to add more checks, more documents, and more front-end pressure to certain matters from 1 July 2026. Where a transaction involves a designated service, getting clear on the position early can help avoid delays and keep the matter moving.
For clients involved in these changes, Astraea Law can help identify where the reforms may apply, what needs to be dealt with upfront, and what may be required before the transaction can progress.
That means fewer surprises, better preparation, and a clearer path forward.
Important Note
This article provides a general overview only and does not constitute legal advice.
Whether the AML/CTF reforms apply will depend on the specific services being provided, the applicable legislation, rules, and AUSTRAC guidance, and the circumstances of each matter.
FAQs
What do law firms need to do before 1 July 2026?
Where a law firm will provide designated services from 1 July 2026, it may need to enrol with AUSTRAC, put an AML/CTF program in place, appoint a compliance officer, train staff, and prepare customer due diligence processes before the regime starts.
Will the AML/CTF reforms affect business sales and purchases?
They may. If a matter involves a designated service, business sale and purchase work may involve extra front-end checks, due diligence steps, and document requests before the transaction can progress.
Will the 2026 AML/CTF reforms affect company structures and restructures?
They can. AUSTRAC’s guidance indicates that certain work involving the creation or restructuring of companies or legal arrangements may fall within the designated service framework.
Can the AML/CTF reforms cause delays in property or commercial transactions?
Yes, they can. Where AML/CTF obligations apply, delays may arise if identity documents, ownership information, or other required material is not provided early in the matter.
