AML & CTF Changes
What the new requirements mean for your business
From 1 July 2026, accounting firms providing designated services must comply with expanded Anti-Money Laundering and Counter-Terrorism Financing obligations. This means more formal identity checks, entity verification, record keeping and ongoing monitoring.
View verification feesWhat the new AML/CTF requirements mean for small business owners
From 1 July 2026, there is more red tape coming for small business owners.
New Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) obligations, overseen by AUSTRAC, mean accounting firms are now legally required to take a more formal role in confirming identity and business details as part of providing professional services.
This is aimed at reducing the risk of the financial system being misused. For small business owners, this means you may notice more questions, additional verification steps, extra paperwork, and added compliance fees when we onboard you or update your details.
Whilst these changes are designed to strengthen the financial system, they add another layer of administration, time, and cost for both accountants and small businesses. Here we explain why these changes are happening, what they mean for business owners, and how we will support you through the extra compliance in a clear, practical, and transparent way.
Frequently asked questions
What is AML?
Anti-Money Laundering rules are designed to prevent illegally obtained money from being disguised or moved through legitimate businesses and financial systems.
What is CTF?
Counter-Terrorism Financing rules aim to stop money or assets being used to support terrorism. They require customer identification, ownership checks and monitoring.
What is AUSTRAC?
AUSTRAC is Australia’s AML/CTF regulator and financial intelligence agency. It oversees reporting entities and receives required regulatory reports.
What this means for small business owners
More ID checks (for people and entities)
From 1 July 2026, AMH Accounting will need to complete AML/CTF checks, where required by the legislation, for:
- Individuals, including directors, trustees, partners and relevant shareholders
- Business entities, including companies, trusts and partnerships
- Beneficial owners, authorised representatives and other related parties where required
The initial identification and entity checks will generally be completed once. However, the law also requires us to keep relevant information current and undertake ongoing monitoring.
More protection
These checks are intended to confirm that the correct people are connected to the correct entities and that professional services are not being misused. For many business owners, the process will feel like additional administration. We will provide clear instructions, practical checklists and secure verification links so you can complete the requirements with as little disruption as possible.
Potential reporting obligations and ongoing monitoring
In some circumstances, accounting firms covered by the AML/CTF regime may be legally required to lodge reports with AUSTRAC. Most clients will not notice anything beyond identity verification, entity checks and occasional requests to update information. However, the compliance framework must operate continuously in the background and be supported by appropriate records and independent review.
What ongoing monitoring by AMH Accounting means
Where the AML/CTF legislation applies, AMH Accounting may be required to:
- Assess unusual transactions or behaviour encountered while providing our services
- Screen relevant clients and associated individuals against the DFAT Consolidated List
- Monitor politically exposed person information and other relevant risk indicators
- Undertake appropriate adverse-media screening
- Review and reverify customer information where its accuracy is uncertain or the risk changes
- Monitor significant changes in the nature or purpose of the business relationship
- Review relevant records for reportable cash transactions where required
- Lodge reports with AUSTRAC when the legislation requires us to do so
- Maintain our annual compliance, record-keeping and independent evaluation obligations
Important
The legal obligation to complete and record these checks rests with AMH Accounting. This means we cannot always rely solely on documents already supplied without completing the formal verification process required under our AML/CTF program.
What we will need from you
Individuals
You will receive a secure link to provide your details and suitable identification, generally a current driver licence or passport.
Companies
We will use our records and available registers to verify the company. Directors and relevant beneficial owners will also require individual checks.
Trusts
We will use the trust deed and related records. Trustees, relevant corporate trustee directors and beneficial owners may also require individual verification.
Costs and fees: what to expect
The new regime creates out-of-pocket verification costs, software and licensing costs, and professional time required to complete checks, maintain records and manage ongoing obligations.
1. Upfront verification
| Verification | Fee |
|---|---|
| Individual identity verification | $45 per person |
| Company verification | $75 per company |
| Trust verification | $75 per trust |
Where a trust has a corporate trustee, the trust and trustee company are verified separately. Relevant individuals are also charged separately.
2. Ongoing monitoring
| Client arrangement | Annual fee |
|---|---|
| Individuals | No separate ongoing fee |
| Trusts | No separate ongoing fee* |
| Accounting services billed monthly — combined annual ASIC service and AML/CTF monitoring fee | $450 per company |
| Accounts billed when prepared and AMH manages ASIC — AML/CTF annual monitoring fee invoiced 1 July | $250 per company |
| Client manages their own ASIC — AML/CTF annual monitoring fee invoiced 1 July | $300 per company |
*The trust monitoring cost is incorporated into the associated company arrangement where applicable. Additional fees may apply for complex structures, international parties or enhanced due diligence. We will advise you where material extra work is required.
AML/CTF FAQs
The basics
Why is this happening?
Australia has expanded its laws to cover professional services that can be exploited to move or disguise money. The reforms apply to designated services provided by accountants and several other professional sectors from 1 July 2026.
Does this affect me as a client?
You may be asked for identity documents, entity records, ownership information or information about the purpose of a transaction before certain services can be provided.
Does this mean AMH Accounting suspects something is wrong?
No. Customer due diligence is a standard compliance process. Additional checks can be required because of the service, structure or circumstances and do not imply wrongdoing.
Does this apply to every accounting service?
No. The obligations are linked to specified designated services. A standard tax return or general tax advice is not necessarily a designated service on its own, but entity formation, restructuring, registered office services and particular transactions can bring the requirements into operation.
Ongoing obligations
Will you be monitoring my transactions?
We must conduct ongoing due diligence in relation to designated services. This includes keeping information current and assessing activity that appears unusual in the course of the work we perform. It does not mean AMH Accounting has access to or watches every transaction outside the services we provide.
Is identity verification a one-off process?
Initial verification is largely completed once, but we may need refreshed or additional information when details change, records become outdated, new entities are introduced or risk changes.
Can AMH Accounting report matters to AUSTRAC?
Yes. Reporting entities must lodge required reports in specified circumstances. The law may prevent us from telling a client whether a suspicious matter report has been made.
Could you decline to provide a service?
Yes. We may be unable to provide a designated service if required verification cannot be completed or a risk cannot be appropriately managed under our AML/CTF program.
Specific situations
You provide my company’s registered office. Does this affect me?
Providing a registered office or business address can be a designated service. The company and relevant individuals may therefore require verification.
What happens if my trust deed is missing?
We generally need the trust deed to verify a trust. Where it cannot be located, we may be unable to provide a designated service until the issue is resolved. Legal advice may be needed.
I use several entities. Is each one checked?
Each relevant entity requires its own verification. Your personal identity should generally only need to be verified once, even where you are connected to multiple entities.
Can I complete verification remotely?
Yes. We intend to use secure electronic identity verification. We can discuss alternatives where electronic verification is not suitable.
Identity verification and privacy
Why are you asking me for ID?
Customer due diligence requires us to identify and verify relevant clients and associated individuals before providing designated services.
What identification will I need?
Usually your full legal name, date of birth, residential address and a current government-issued photo ID. Entity checks can also require information about directors, trustees, shareholders and beneficial owners.
Why are you asking about source of funds or wealth?
For higher-risk, complex or international matters, enhanced due diligence may require information about where transaction funds came from or how wealth was accumulated.
What is a politically exposed person?
A politically exposed person is someone who holds or has held a prominent public position, together with certain close family members or associates. Being a PEP does not imply wrongdoing but can require additional checks.
Is my personal information secure?
AMH Accounting will collect and retain verification records through secure systems and handle them in accordance with applicable legal, privacy and professional obligations.
What you need to do
Do I need to take action now?
No action is required until AMH Accounting contacts you. When requested, prompt completion of the verification steps will help avoid delays.
What is the best way to prepare?
Make sure your photo identification is current, your contact details are up to date and your key company and trust records can be located.
We will help make the process clear and manageable.
These obligations add administration, but they also help protect businesses and the wider financial system. Contact AMH Accounting if you have questions about verification, your entities or the fees that apply.
Contact AMH Accounting
Phone
07 5456 2000
Email
annemarie@amhaccounting.com.au
Office
17 Glenalpin Court
Buderim QLD 4556
Monday to Friday, 9:00am to 5:00pm
Contact us