Insights

Why AML Changes for Accountants Matter

Australia’s Anti‑Money Laundering (AML) and Counter‑Terrorism Financing (CTF) rules are expanding, and accountants, amongst several professional services industries, will soon be subject to similar obligations currently applied to the financial services industry.

For many clients, the most noticeable change won’t be the regulations in the background, but the questions asked upfront and throughout the relationship. While this may feel like added administration, these changes are designed to strengthen business cyber security, financial transparency, and compliance across the economy.

Anti-Money Laundering Legal Requirements for Accountants

Under updated AML obligations, accountants will be required to:

• Verify client identity before providing services
• Understand ownership structures and control, including related entities not forming part of an engagement
• Monitor certain transactions and activities
• Maintain detailed records and supporting documentation

These are not discretionary steps. They are becoming part of the legal requirements for accountants, lawyers, and advisers. For clients, this means more structured onboarding and ongoing information requests.

Why We’re Asking More Questions

You may be wondering, “why am I being asked this now?” The answer is simple. Accountants are now required to have a clear understanding of who they are working with, how entities are structured, and where funds are coming from. While some of this information may already be known, this needs to be documented along with any risks assessed.

The requirements of the AML legislation is to help:

• Prevent fraud and financial misuse
• Reduce exposure to criminal activity
• Protect businesses and professional advisers
• Ensure compliance with Australian regulations

What Questions Might You Be Asked?

As AML requirements expand, you may notice more detailed questions when engaging with your accountant or adviser, particularly at the start or when circumstances change.

These may include:

• Can you provide identification?

Such as a driver’s licence or passport to verify your identity.

• Who owns or controls your business or structure?

Including details of directors, shareholders, trustees or beneficiaries.

• What is the source of funds or transactions?

For example, where investment funds have come from or the purpose behind certain payments.

• Has anything changed in your structure or circumstances?

Such as new entities, ownership changes, or updated roles.

• Can you provide supporting documentation?

Including trust deeds, company extracts, or related records.

While a lot of the above is often covered when an entire related party group is engaging for accounting services, these questions may now be required in relation to entities that are part of the group but not part of the engagement. These questions are not one‑off. They should be revisited over time to ensure information remains accurate and compliant.

What This Means for Business Clients

For business owners and professionals, AML changes for those impacted industries mean:

• More structured onboarding processes
• Ongoing record‑keeping expectations
• Regular updates when circumstances change
• Greater alignment between financial and compliance processes

While this may initially feel time‑consuming, it ultimately reduces risk and supports better governance.

How to Prepare for AML Changes

To stay ahead of AML obligations, it’s important for professional services businesses to:

• Keep identification and key documents readily available
• Maintain accurate records of business structures and ownership
• Notify your adviser of any changes early
• Expect ongoing requests as part of normal engagement

Taking a proactive approach will make the process smoother and more efficient.

The Bottom Line

AML changes are reshaping how accountants and advisers interact with their clients, with obligations to verify and understand their client’s broader group of related entities & associates (even if it extends beyond the client’s entities they’ve engaged with) and monitor transactions and activities to prevent fraud, misuse and non-compliance. Understanding the purpose behind these changes will make the process easier and help you stay well‑positioned moving forward.

Need Help Navigating AML Changes in Your Business?

At Altitude, we support businesses and professionals in adapting to changing compliance requirements while keeping processes practical and efficient.

Speak with your adviser or contact us for an introduction to understand how AML changes may affect you.