What is AML/CTF?

AML/CTF stands for Anti-Money Laundering and Counter-Terrorism Financing.

Australia has laws in place to help prevent legitimate businesses and financial systems from being used for money laundering, terrorism financing and other financial crime. These laws require certain businesses and professionals to take reasonable steps to know who their clients are, understand the nature of their activities and assess potential risks.

As part of our professional and legal obligations, we may need to collect and verify information about you, your business and the people connected with it.

These checks help us understand who we are acting for, the nature of your business and the services you require. They also help protect you, your business and our practice from financial crime.

What this means for you

You may notice some additional questions or requests for identification and business information when you become a client, and periodically throughout our relationship.

If you are acting on behalf of a company, trust or other legal structure, we may also need to understand the purpose and ownership of that structure and verify information such as:

  • the ultimate owner of the business
  • beneficial owners, including individuals who hold 25% or more
  • company directors and other relevant individuals
  • the purpose and nature of the business or structure.

These checks are an important part of our client identification and risk assessment processes.

What information may we ask you for?

Identity
We may ask you to provide identification, such as a passport or driver licence, so we can verify your identity.

Business details
Depending on your circumstances, we may need information about your business structure, directors, beneficial owners and other relevant individuals. This may include director identification numbers (DINs).

Purpose of the relationship
We may ask about the nature of your business, the services you require and the purpose for which those services are being provided.

Source of funds or wealth
In some circumstances, we may need information about where funds or wealth have come from. This is a standard part of assessing and managing financial crime risks.

Ongoing monitoring and keeping your information up to date

Our obligations don’t end once you become a client. We are required to keep certain client information up to date and may periodically review your details.

This may include:

  • asking you to confirm or update your personal or business information
  • asking questions when there is a significant change in your circumstances or business
  • requesting additional information where necessary to understand a transaction or activity.

This helps us maintain appropriate Know Your Client (KYC) processes, understand your business and assess any potential money laundering or terrorism financing risks associated with our engagement.

What happens if we can’t complete the required checks?

If we are unable to obtain or verify the information we need, we may not be able to commence an engagement or, in some circumstances, may need to stop providing services.

We appreciate that providing additional information can take some time. We will always aim to make the process as straightforward and efficient as possible.

How you can help

You can help us by:

✔ Providing requested information and identification promptly
✔ Keeping your personal and business details up to date
✔ Letting us know about significant changes to your business or circumstances
✔ Being open and transparent about your business activities and transactions.

Your information and privacy

We take the privacy and security of your information seriously.

Any information we collect will be handled in accordance with our legal, regulatory and professional obligations and our privacy policy. Where appropriate, we may verify information using reliable and reputable sources or databases and are required to retain records of information collected as part of our compliance obligations.

Want to know more?

If you would like more information about Australia’s anti-money laundering and counter-terrorism financing requirements, you can visit AUSTRAC.

We understand that compliance requirements can sometimes feel like an extra layer of administration. Our aim is to keep the process simple, explain what we need and make it as easy as possible for you to provide the information required.