Australian regulators and professional bodies have increased engagement with the legal profession ahead of the introduction of expanded anti-money-laundering and counter-terrorism-financing (AML/CTF) obligations for lawyers. Their recent briefings to lawyers have focused on the practical implications of bringing legal services more fully within the scope of financial crime regulation, including new requirements for client due-diligence, risk assessments, initial and ongoing CDD , and internal reporting systems.
AUSTRAC has stated it has developed AML/CTF Program Starter Kits in collaboration with industry bodies to alleviate the challenges these reforms pose for smaller firms and sole practitioners mainly in resource constraints, rising cost of compliance, and the need for a proportionate, risk-based approach. At the same time, authorities have emphasised that the legal profession plays a key role in preventing the misuse of legal services for money laundering and other financial crimes.
The reforms also raise ongoing questions about how AML/CTF obligations intersect with legal professional privilege (LPP), client confidentiality, and privacy. It is important for regulatory guidance to ensure that compliance expectations do not undermine core ethical duties or access to legal services, particularly for vulnerable clients.