Changes to the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) legislation come into effect on 1 July 2026 and these changes apply to accountants which may effect the way in which we provide some services to you.

What is Changing

Starting from 1 July 2026 firms who provide services known as Designated Services will have new responsibilities placed upon them.  Designated Services include setting up companies or trusts, acting as a registered office, managing client monies, assisting with business acquisitions and sales, assisting with certain share transactions, just to name a few.  Not all services that we provide will be Designated Services (e.g. preparation of income tax returns).  There are some grandfathering provisions where Designated Services are currently being provided (e.g. acting as your company’s registered office), however if additional Designated Services are requested we will be obligated to apply the new rules to you.

How You May be Affected

When we provide Designated Services to you we have an obligation to undertake due diligence and risk assessments.

This may include –

• Identification Verification. Before undertaking Designated Services we may need to ask you to provide identification documents (such as passport or drivers licence) to confirm your identity.  You may also need to provide additional information about your vocation and some other personal information.  We understand that you may have been dealing with us for many years and this may seem a strange request but it is to ensure that we comply with the new laws.
• Business Structure. Whilst we have an understanding of your companies, trusts and beneficial owners of your business we may need to obtain additional information from you including obtaining confirmation of those persons who have authority to act on behalf of your companies, trusts and other entities.  Where there are beneficial owners who we do not act for we may need to obtain identification documents from them as well.
• Sources of Funds and Wealth. We may need to ask you about the purpose of your transaction or the source of the funds for the transaction being undertaken or the sources of your overall wealth, particularly where there are funds or wealth are sourced from overseas, large amounts or part of a complex arrangement.
• Other Questions. If you or a beneficial owner is a Politically Exposed Person (PEP) – someone who holds, or has held, a prominent public position, then we may need to apply a higher degree of care and risk assessment by asking further questions.
• Ongoing Checks. This due diligence process will be an ongoing requirement and may require us to monitor transactions and structures for any unusual events and contact you for clarification if something is identified.  For some clients who regularly use our Designated Services we will undertake annual reviews in relation to AML/CFT to ensure that we remain compliant with these laws.
• Reporting. In some cases we may be legally required to report suspicious activities or large cash transactions (over $10,000) to AUSTRAC, the government agency overseeing the AML/CFT laws.  Reporting a matter doesn’t necessarily mean that you have done anything illegal, it’s just part of our legal responsibility to report matters.
• Timing of Services. As compliance with these new AML/CFT laws require us to undertake certain due diligence prior to providing Designated Services to you the delivery of those services may be delayed whilst those checks are being undertaken.  We will aim to provide you with advance warning if the AML/CFT laws apply to the services you request to minimise any delays in the provision of services.

What you can do to prepare

If you are likely to be engaging in transactions after 1 July 2026 engage with us early about the services required so that we can perform the due diligence in advance of when the services will be required.

You should also ensure that you have your identification documents ready as this will help expedite the compliance process.

Privacy

As has always been the case the information you provide to us is considered confidential and will be handled in accordance with our Privacy Policy.  We take the privacy of your personal data very serious and these rules will not change our commitment to you in this regard.

Questions

We are preparing for these changes to make the transition as smooth as possible for you, however if you would to more information about these changes and how they may impact you please contact us at compliance@cibaccountants.com.au.