Why Is My Lawyer Asking So Many Questions? A Practical Guide to Australia’s New Anti-Money Laundering Laws

If you’ve recently engaged Ramsden Lawyers to assist with buying or selling property, purchasing or selling a business, establishing a trust, administering an estate, restructuring your affairs or completing another significant transaction, you may notice we’re asking for more information than we have in the past.

You might be asked to:

• Verify your identity
• Confirm your residential address
• Explain where the funds for a transaction have come from
• Provide information about a company or trust
• Identify who ultimately owns or controls a business
• Explain how you accumulated your wealth

If that seems unusual, you’re certainly not alone.

From 1 July 2026, Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws expanded to include many legal services. These reforms introduce new obligations for law firms when providing certain designated legal services.

For most clients, the process is straightforward. It simply means that lawyers may need to ask a few more questions before commencing or completing certain transactions.

At Ramsden Lawyers, we’re committed to making that process as simple, transparent, and efficient as possible.

Why Has the Law Changed?

Australia has strengthened its AML/CTF laws to help protect the community, the financial system and the property market from criminal misuse.

These reforms are designed to detect and disrupt activities such as:

• money laundering
• organised crime
• fraud
• terrorism financing
• tax evasion
• and other serious criminal activity

Although these crimes may seem far removed from everyday legal transactions, criminals often attempt to disguise illegally obtained money by moving it through legitimate businesses, property transactions and corporate structures.

Lawyers play an important role in many of these transactions.

Accordingly, Australian law now requires legal practitioners providing certain designated services to undertake additional due diligence before proceeding.

These obligations are not unique to Ramsden Lawyers. They now apply across Australia to law firms, accountants, real estate professionals, and other businesses providing designated services under the AML/CTF regime.

What Is Money Laundering?

When people hear the term “money laundering”, they often picture dramatic scenes from movies involving bags of cash and organised crime.

The reality is usually far less obvious.

Money laundering is simply the process of making money obtained through illegal activity appear legitimate.

Rather than leaving criminal proceeds sitting in cash, criminals often attempt to invest those funds into legitimate assets such as businesses or real estate.

Over time, those assets may appreciate in value, generate income, or eventually be sold, making it increasingly difficult to identify the original source of the funds.

This is why governments around the world have introduced AML/CTF laws to make these activities much harder to undertake.

Why Is Property Considered High Risk?

One of the sectors identified by AUSTRAC as having a higher exposure to money laundering is real estate.

Why?

Because property has several characteristics that make it attractive to criminals.

It can involve very large transactions.

Ownership can be held through companies or trusts.

Property generally appreciates over time.

And purchasing property is an entirely legitimate activity, making it easier to disguise the movement of illicit funds.

That does not mean property buyers or sellers are viewed with suspicion.

It simply means the Government now requires professionals involved in these transactions, including lawyers, to complete additional due diligence before providing certain services.

What Do The AML/CTF Changes Mean for You?

For most clients, very little will change other than providing some additional information during the onboarding process.

Depending on your matter, we may ask you to provide:

• identification documents
• your date of birth and residential address
• information about any company, trust, or other entity involved
• details of directors, shareholders, trustees, beneficiaries, or beneficial owners
• information regarding the source of funds for a transaction
• information about your source of wealth where required
• updated information if circumstances change during the course of your matter

Many of these checks will already feel familiar if you’ve opened a bank account, applied for finance, or dealt with an accountant or financial institution.

Our team will explain what is required and why.

Why Do You Need to Know Where My Money Came From?

This is probably the question we’ll hear most often.

The answer is simple.

The law now requires lawyers to understand where the money used in certain transactions originates.

In most matters, the answer is straightforward.

Your funds may come from:

• savings
• the sale of another property
• business income
• an inheritance
• an investment portfolio
• or bank finance

Depending on the transaction, we may simply ask you to explain the source of the funds.

Occasionally, supporting documentation may also be required.

This isn’t because we suspect wrongdoing.

It’s because the law now requires us to ask.

Source of Funds Vs Source of Wealth

These two terms sound similar, but they mean different things.

Source of Funds refers to where the money for this particular transaction has come from.

For example:

• savings
• proceeds from selling another property
• a bank loan
• an inheritance

Source of Wealth refers to how your overall wealth has been accumulated over time.

For example:

• employment
• operating a business
• investments
• property development
• an inheritance

Some matters may require us to understand only the source of funds.

Others may require information about both.

Our team will let you know what is relevant to your circumstances.

Will Every Client Be Asked for The Same Information?

No.

The level of information required depends on the nature of the legal service being provided and the level of risk associated with the transaction.

Many clients will only need to complete standard identification checks.

More complex matters involving companies, trusts, overseas parties, unusual ownership structures or higher-risk transactions may require additional information.

Where further information is required, we will explain why.

How Will My Information Be Used?

We recognise that much of the information requested is personal and confidential.

Information collected for AML/CTF purposes is handled in accordance with applicable privacy legislation, our professional obligations of confidentiality and the AML/CTF legislative framework.

Where legally permitted or required, information may also be verified through reputable third-party databases, government registers or other authorised sources.

Like other regulated businesses, law firms are also subject to legal reporting obligations in limited circumstances prescribed by law.

The overwhelming majority of clients will never be affected by these reporting requirements beyond the routine identification and verification process.

What Happens If I Can’t Provide the Information?

The AML/CTF legislation requires law firms to complete certain verification processes before providing some designated legal services.

If we cannot obtain or verify the information required by law, we may be unable to commence acting for you or continue acting on your matter until those requirements have been satisfied.

If you have difficulty obtaining any requested documentation, please let us know as soon as possible.

Our team will work with you to determine whether alternative forms of verification may be available.

Our Commitment to You

At Ramsden Lawyers, we understand that these new requirements may feel unfamiliar.

Please remember:

We are not asking these questions because we are concerned about you.

We are asking because Australian law now requires us to undertake additional due diligence when providing certain legal services.

Our commitment is to make the process as straightforward as possible by clearly explaining what we need, why we need it, and how your information will be protected.

By working together, we can ensure your matter progresses as efficiently as possible while meeting the legal obligations that now apply across the Australian legal profession.

Client Information Brochures

• Queensland – Download here
• New South Wales – Download here
• Victoria – Download here