Anti-Money Laundering Laws
Update #1
New AML/CTF laws take effect 1 July 2026. Learn what changes for LDB accounting clients, what we’ll ask for, and how we’ll manage it together.
Anti-Money Laundering laws are changing: What it means for your relationship With LDB
New AML/CTF laws take effect 1 July 2026. Learn what changes for LDB accounting clients, what we’ll ask for, and how we’ll manage it together.
New Anti-Money Laundering laws come into effect on 1 July 2026, and they apply to a broad range of services provided by accounting and advisory firms across Australia, including some of the services LDB Group provides.
These reforms are not specific to LDB and they don’t reflect any concern about you. They’re a significant expansion of Australia’s existing AML/CTF framework, the same one banks have worked under for years that now includes professional services.
What this means practically is that, for certain matters, LDB will be required to collect and verify information about you, your business, and the nature of your instructions before we can proceed. This process is known as Customer Due Diligence (CDD), and it is a legal requirement and is not a discretionary step.
We understand that any change to a professional relationship can raise questions. Our intention with this page is to explain clearly what is happening, why it is happening, and what you can expect from us throughout the process.
What are designated services, and does your matter qualify?
The AML/CTF legislation doesn’t apply to every accounting service.
Instead, it applies to specific designated services, which generally involve activities considered to carry a higher risk of being misused for financial crime.
Examples include assisting clients with:
- Buying or selling businesses
- Establishing or restructuring companies, trusts or partnerships
- Certain property transactions
- Particular financing arrangements
- Acting in nominee or similar capacities
- Providing registered office or business address services in prescribed circumstances.
Routine tax compliance, annual tax returns and many general accounting services may fall outside these requirements.
However, engagements can evolve over time. If a matter develops into a designated service, we may need to complete client due diligence before continuing.
If this applies to your engagement, we’ll explain exactly why.
What does this mean for you?
The changes won’t affect every interaction you have with LDB.
However, if you engage us for certain designated services, we may need to complete a client due diligence (CDD) process before we can proceed.
Depending on the work involved, we may ask you to:
- Verify your identity
- Confirm who owns or controls a company or trust
- Provide documents relating to a proposed transaction
- Explain the source of funds for a transaction
- Confirm who is authorised to act on behalf of a business or trust.
These questions aren’t unique to LDB. They are part of new legal obligations applying across many professional service firms in Australia.
What will LDB ask you to provide?
To fulfil our obligations under the AML/CTF laws, we will ask you to complete a client due diligence process before we can proceed with designated services. We use a secure, third-party platform called BGLiD to manage this process, and you will receive an electronic link by email or SMS to complete your information online.
The information we collect will depend on your circumstances and the nature of your matter, but typically includes:
For individuals:
- Full name, residential address, and date of birth
- A current photo identity document such as a driver’s licence or passport
- Supporting identity documents such as a birth certificate or citizenship certificate
For businesses:
- Details of the entity type — company, trust, partnership, or similar
- Information about directors, beneficial owners, and those who ultimately own or control the structure
- Financial or transaction documents relevant to the matter, such as contracts, agreements, or bank statements
In certain circumstances:
- Evidence of authority to act on behalf of another person, such as a power of attorney or board resolution
- Information about your source of wealth or source of funds
- Confirmation of whether you or any associated party holds a prominent public position. The legislation refers to a politically exposed person (PEP). This category includes senior politicians, judges, ambassadors, senior military officers, and senior government officials.
We recognise that some of this information feels personal. We want to be clear about how it is handled, see the section below on privacy and data security.
What this means if you are an existing LDB client
Existing clients as at 1 July 2026 will not generally need to complete a full CDD process solely because the laws commence. However, additional checks may be required where a new designated service is provided, circumstances change, or information needs to be updated.
The point to understand is that the obligation attaches to the matter, not to how long you’ve been with us. Certain changes to your circumstances or your instructions may trigger a requirement to complete CDD going forward. This may occur if:
- You instruct us in relation to a new matter that falls within designated services
- There are changes to the directors, shareholders, or beneficial ownership of your business
- The nature of your relationship with LDB changes in a material way
Where this applies, we will let you know clearly and explain what information is required and why. Our aim is to manage these steps in a way that is straightforward and does not disrupt the broader work we do together.
How will LDB manage the process?
Our goal is to make compliance as efficient and straightforward as possible.
Where client due diligence is required, we’ll generally:
- Determine whether your engagement falls within the designated services framework
- Send you a secure electronic request through our verification platform
- Review the information provided
- Follow up if anything further is required
- Commence or continue your engagement once legislative requirements have been met.
In some circumstances, we may also need to keep certain information current throughout our ongoing relationship with you.
What if the required information cannot be provided?
The legislation requires us to verify certain information before providing designated services.
If we cannot obtain or verify the required information, we may be legally unable to accept new instructions or continue acting on a matter.
While we appreciate this may occasionally be frustrating, these obligations apply to all regulated firms and are not discretionary.
If you have concerns about the information being requested, please speak with your LDB adviser. We’ll explain why it’s required and discuss the best way to complete the process.
Will there be a cost?
The client due diligence process involves searches of relevant government databases – including driver’s licence and passport verification and ASIC register searches – to confirm the information you provide. The fees associated with these searches will be passed on to you.
Details will be outlined in your cost’s disclosure and engagement documentation. Please speak with your LDB adviser if you have any questions about the cost implications for your matter. LDB will do our best to minimise the cost to our clients.
How is your information handled?
LDB takes privacy and data security seriously. All information collected as part of the AML/CTF process is managed in accordance with Australian privacy laws, our professional confidentiality obligations, and AML/CTF regulatory requirements.
Your personal information is held securely and used only for the purposes required by law. We collect information both directly and through BGLiD. We may share relevant information with BGLiD as part of the compliance process, but we do not use your information for marketing purposes, and we do not sell or trade client data.
We retain personal information collected under these obligations for seven years after it is collected or after our engagement with you concludes.
For more information, please refer to LDB’s privacy policy.
Talk to LDB
If you have questions about how the new anti-money laundering laws apply to your situation or your existing matters with LDB, we encourage you to speak with your LDB adviser. The sooner we understand your circumstances, the better placed we are to manage the process without disruption to the work we do together.
Call us today on (03) 9875 2900 or get in touch online to discuss how the anti-money laundering law changes may affect you.
Frequently asked questions
Not usually. The AML/CTF laws apply specifically to designated services, which generally relate to transactions involving real estate, business structures, and certain financial arrangements. Standard tax compliance, accounting, and advisory work may not trigger these requirements. If you are unsure whether your matter is affected, please speak with your LDB adviser.
No. These obligations apply to all accounting and advisory firms providing designated services in Australia from 1 July 2026. Collecting and verifying client information is a legal requirement under the new AML/CTF framework. This is not a reflection of any concern about an individual client.
Existing clients as at 1 July 2026 are not required to complete client due diligence retrospectively. However, if you instruct us in a new designated services matter, or if there are material changes to your business structure or circumstances, we may need to complete this process at that point.
A politically exposed person (PEP) is someone who holds or has held a prominent public position - such as a senior politician, judge, ambassador, senior military officer, or senior government official - in Australia, overseas, or within an international organisation. The AML/CTF laws require us to ask about this because such positions can carry a higher inherent risk profile for certain financial arrangements. Being identified as a PEP does not prevent us from acting for you; it may simply mean additional steps are required.
Information provided through the platform is handled in accordance with Australian privacy laws and they are used widely across Australian professional services firms. We encourage you to review their Privacy Policy for full details.
In limited situations where timing is critical, we may be able to commence preliminary work while the client due diligence process is completed. This is assessed case by case. Please speak with your LDB adviser as early as possible so we can plan accordingly.
Contact Us
Contact us sidebar
"*" indicates required fields
Subscribe
Get LDB insights in your inbox
Sign up to our newsletter for the latest news, tips, and important reminders from LDB.
HOW CAN WE HELP?
