What Has Changed
Australia has overhauled its anti-money laundering and counter-terrorism financing (AML/CTF) laws. For most of the past two decades, these laws applied primarily to banks, financial institutions, and casinos. From 1 July 2026, they extend to what are called "gatekeeper professions" — the accountants, lawyers, financial advisers, and real estate agents that criminals have historically used to move and legitimise dirty money.
The result: your professional advisers are now reporting entities under Australian law. They have obligations. Those obligations flow directly to you as their client.
What Your Advisers Will Now Ask You — and Why
"Can I verify your identity?"
Before your accountant can help you set up a trust, your lawyer can execute a property settlement, or your financial adviser can assist with a company restructure, they must verify who you are. For individuals, that means confirming your full name, date of birth, and address against primary identity documents — passport, driver's licence, or an approved digital identity service.
For companies and trusts, it goes further. Your adviser must identify and verify the beneficial owners — the individuals who ultimately own or control 25% or more of the entity. If your business structure involves holding companies, family trusts, or offshore entities, every layer needs to be traced to a real, verified human being.
"Where did this money come from?"
For transactions involving significant funds — a property purchase, a business acquisition, a trust capitalisation — your adviser may be required to ask about the source of funds and source of wealth. This is not a personal judgement. If the answer is straightforward — proceeds from the sale of a business, inheritance, investment returns — say so clearly and be prepared to document it.
"Who are the beneficial owners of this entity?"
This is the question that catches many business owners off guard. If your business is owned through a chain of companies and trusts, your adviser needs to trace that chain to its end and identify every individual who ultimately controls or benefits from the entity. This is not unusual or suspicious — it is how many Australian family businesses are legitimately structured. But it does require documentation that many business owners have never needed to assemble before.
"Can we proceed with this transaction?"
In some cases, the answer may be no — or not yet. If you decline to provide identification, cannot explain the source of funds, or cannot identify beneficial owners, your adviser is legally required to decline to provide the service. This means that if you are planning a time-sensitive transaction — a property settlement, a business acquisition, a trust establishment — you need to factor in the time required to complete KYC before the clock starts running.
Which Advisers Does This Apply To?
Accountants who establish trusts, form companies, assist in business sales, manage client funds, or provide registered office services are now regulated.
Financial advisers whose practice extends beyond pure financial advice into trust creation, company structuring, or client money management face full Tranche 2 obligations.
Lawyers and conveyancers who assist in property transactions, business transfers, corporate structuring, or trust administration are caught.
Real estate agents and buyer's agents must verify the identity of both buyers and sellers in property transactions from 1 July 2026.
Property developers selling off-the-plan apartments, house-and-land packages, or subdivided lots are regulated for those sales.
What This Means for You Practically
Assemble Your Identity Documents Now
Passport or driver's licence for all individuals. ASIC extracts for companies. Trust deeds and trustee identification for trusts. The more complex your structure, the more documentation you will need. Having it ready before your adviser asks saves time and avoids delays.
Map Your Ownership Structure
Know who the beneficial owners of each entity in your structure are, and be prepared to explain it clearly. If you are unsure — because the structure was set up years ago and you have lost track of who the appointor is, or which trust owns which shares — now is the time to find out.
Build Extra Time Into Transaction Timelines
If you are planning a property purchase, business acquisition, or new corporate structure in the second half of 2026, factor in the time needed to complete KYC before work begins. For complex structures, this may take days or weeks. A transaction that needs to settle in 30 days needs to start the KYC process on day one.
Be Prepared to Explain Source of Funds
For significant transactions, have a clear, documentable explanation ready — bank statements, sale contracts, inheritance documents, loan agreements. Your adviser is satisfying a legal requirement. The easier you make it for them, the faster the process moves.
Do Not Be Offended
Your long-standing adviser of ten years asking to verify your identity is not a sign that the relationship has changed. It is a sign that the law has. The obligation applies to every client, regardless of the length or depth of the relationship.
The Broader Point: This Is About Trust in the System
Money laundering causes genuine harm. It funds organised crime, drug trafficking, and exploitation. It distorts property markets and inflates asset prices. Australia's professional services sector has been a gap in the global financial crime defence framework for too long.
The inconvenience to you as a law-abiding client is real but manageable. The benefit to the financial system — and to the integrity of the professions you rely on — is significant.
How Proximo Comply Helps — On Both Sides
When your adviser uses Proximo Comply, the KYC process is guided, digital, and efficient — not a manila folder of photocopied documents and manual spreadsheets. Identity verification is streamlined. Beneficial ownership mapping is structured. The process that could take days without proper systems takes hours with the right technology.
For advisers reading this: if you have not yet built the compliance infrastructure the law now requires, the window is closing. Visit proximoai.net to book a demonstration.