Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) legislation is designed to help protect the Australian economy, businesses and the community from financial crime.
As part of these obligations, professional advisers, including accountants, financial advisers, lawyers and other service providers, may need to request additional information from clients both when establishing a relationship and throughout the engagement.
While these requirements can involve extra checks and enquiries, they are an important part of maintaining the integrity of Australia’s financial system and meeting international regulatory standards.
What are money laundering and terrorism financing?
Money laundering is the process of concealing or disguising money that has been obtained through illegal activities, so it appears to come from legitimate sources.
Terrorism financing involves collecting, transferring or making funds available to support terrorist organisations, activities or individuals. In many cases, transactions are structured to hide the origin, destination or intended use of the funds.
Both money laundering and terrorism financing are serious offences and are actively monitored by regulators and law enforcement agencies around the world.
Why are these requirements necessary?
Australia’s AML/CTF framework has been introduced to:
- Strengthen Australia’s compliance with international regulatory expectations.
- Reduce opportunities for criminal organisations to misuse legitimate businesses and professional services.
- Support law enforcement and regulatory agencies in detecting and investigating serious financial crime.
- Improve transparency, accountability and trust across financial and professional sectors.
Who must comply?
AML/CTF obligations apply to a wide range of businesses and industries, including:
- Banks and other financial institutions.
- Financial advisers and superannuation providers.
- Life insurance companies and custodial service providers.
- Gambling and gaming operators.
- Bullion and precious metal dealers.
- Legal and other designated professional service providers.
As these obligations apply across many industries, clients may be asked to provide similar information when dealing with different organisations.
What information might be requested?
To comply with AML/CTF legislation, businesses must verify a client’s identity and develop an understanding of the nature and purpose of the services being provided.
Depending on the circumstances, clients may be asked to provide:
- A current passport or driver’s licence for identification purposes.
- A birth certificate or other supporting identification documents.
- Proof of address, such as a utility bill or bank statement.
- Information regarding the source of funds or wealth involved in a transaction.
- Details of company, trust or partnership ownership structures.
- Information about beneficial owners who ultimately control or benefit from an entity.
- Confirmation of whether they are a Politically Exposed Person (PEP), or related to a PEP. A PEP is a person who holds a prominent public position, such as a senior government official, judge or military officer.
In certain situations, information may also be obtained from independent third-party sources, including company searches and other verification databases, to assist with compliance requirements.
Why may information be requested more than once?
AML/CTF compliance requires ongoing monitoring rather than a one-time verification process.
As part of these obligations, DFK Gray Perry may periodically request updated information to:
- Confirm personal details remain accurate.
- Update records relating to business activities.
- Obtain further information regarding particular transactions.
- Verify changes to ownership, control structures or funding sources.
These enquiries are a routine part of maintaining compliant and accurate records.
How will my information be handled?
Information collected for AML/CTF purposes is managed in accordance with applicable privacy legislation and DFK Gray Perry’s Privacy Policy.
DFK Gray Perry is committed to protecting the confidentiality and security of personal information and meeting its legal and regulatory obligations.
In certain circumstances, businesses may be required by law to report specific transactions or suspicious matters to the Australian Transaction Reports and Analysis Centre (AUSTRAC).
Legislation also prevents organisations from notifying clients when a suspicious matter report has been lodged with AUSTRAC.
What happens if I am unable to provide the information requested?
AML/CTF laws require businesses to complete certain verification and due diligence procedures before providing services.
If the necessary information cannot be obtained or verified, DFK Gray Perry may not be able to commence or continue an engagement. These requirements are imposed by law and apply consistently across regulated businesses and professions.
Are there any costs associated with AML/CTF compliance?
Meeting AML/CTF obligations can sometimes involve additional verification processes and external searches. Fees may apply in certain circumstances for services such as:
- Electronic identity verification performed by third-party providers.
- Company, trust or beneficial ownership searches.
- Enhanced due diligence activities required to satisfy regulatory obligations.
Where applicable, DFK Gray Perry will advise clients of any fees associated with these services.
How DFK Gray Perry Can Assist
DFK Gray Perry is committed to meeting its AML/CTF obligations while making the compliance process as efficient and straightforward as possible for clients.
Our team maintains robust compliance procedures and ongoing training to ensure we meet our regulatory responsibilities and provide a high standard of professional service.
If you have any questions about the information we request or Australia’s AML/CTF requirements, please contact the DFK Gray Perry team. We are happy to explain the process and assist with any enquiries.
Although identification and verification requests may occasionally seem inconvenient, they play an important role in protecting clients, businesses and the wider community from financial crime and preserving confidence in Australia’s financial system.
