Australia’s AML/CTF Amendment Act will extend anti-money laundering and counter-terrorism financing obligations to lawyers, accountants, and real estate agents beginning July 1, 2026, requiring an estimated 100,000 entities to enroll with AUSTRAC and implement identity verification programs.
The legislation, known as Tranche 2, closes a long-standing gap in Australia’s financial crime prevention framework. The legal, accounting, and real estate professions had been excluded from AML/CTF requirements since the original legislation passed in 2006, despite repeated recommendations from the Financial Action Task Force that these sectors be brought into compliance.
Under the new rules, affected entities must implement customer due diligence programs that include identity verification at onboarding, ongoing transaction monitoring, and suspicious matter reporting to AUSTRAC, Australia’s financial intelligence agency. Businesses must also maintain records for a minimum of seven years, conduct enhanced due diligence for high-risk clients and politically exposed persons, and appoint a compliance officer responsible for overseeing the program.
The requirements mandate digital identity verification workflows for the estimated 100,000 newly regulated entities. Law firms, accounting practices, and real estate agencies that previously relied on manual document checks will need eKYC and biometric onboarding solutions capable of verifying identity documents, performing facial matching, and screening against sanctions and watchlists.
Australia has been building out its national digital ID infrastructure in parallel, which could provide a streamlined verification path for entities meeting their new AML/CTF obligations. The Law Council of Australia has backed digital ID as a replacement for mandatory data retention, arguing that centralized verification reduces the cybersecurity risk associated with firms storing copies of client identity documents.
Air New Zealand recently completed a digital ID trial and announced plans to expand to Australia, underscoring broader momentum for digital identity adoption across the region ahead of the compliance deadline.
The July 2026 deadline gives affected professions approximately two months to enroll with AUSTRAC and establish compliant programs. Industry groups have warned that many smaller practices lack the infrastructure for digital onboarding and may need to engage third-party identity verification providers to meet the compliance timeline.
Sources: Norton Rose Fulbright, ShareRing
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By the ID Tech Editorial Team
