Legal professionals
Law firms providing certain designated services — property, company formation, trust services — become reporting entities under Tranche 2.
AML/CTF Amendment Act 2024 — Designated Non-Financial Businesses
AML/CTF Obligations
Enrol with AUSTRAC and implement a full AML/CTF program for designated legal services
Conduct client due diligence at the commencement of every matter involving a designated service
Verify the beneficial ownership and control of corporate or trust clients
Monitor client trust account transactions for suspicious patterns
Lodge SMR reports within 3 business days of forming a suspicion
Train all staff providing designated services in AML/CTF obligations
Law firms must lodge SMR reports within 3 business days of forming a suspicion in connection with a designated service. Legal professional privilege applies narrowly and does not provide a blanket exemption from SMR obligations.
Typical Customer Risk Profiles
Clients seeking rapid corporate structure creation — a client who wants a company or trust formed quickly, with minimal questions asked about ownership, is a recognised red flag for ML structuring.
Clients with complex offshore ownership — instructions from clients whose ultimate beneficial owners are in high-risk jurisdictions, or who use multiple offshore vehicles, require enhanced scrutiny.
High-value property transactions with cash components — any matter where the client is contributing a significant amount of cash to a property purchase requires documented source of funds verification.
Trust account deposits from unexpected sources — a trust account receipt from a third party not connected to the matter, or for an amount inconsistent with the transaction value, is a serious red flag.
Recommended Compliance Pack
Legal Pack
Pre-configured for Legal professionals — KYC rules, risk thresholds, AUSTRAC report templates, CDD workflows, and monitoring rules aligned to your obligations. Ready from day one.
View pack detailsWhat's included
System default — customisableMatter-based CDD workflows — client intake, identity verification, and risk assessment at matter open
Beneficial ownership mapping for complex corporate and trust structures with UBO identification
Client trust account monitoring with configurable rules for unusual transaction detection
SMR preparation and case management tools for MLRO review and regulatory reporting
AML/CTF program template for law firms with matter risk assessment and staff training tracking
Example workflow
Default — you can modify stepsNew matter opened
Matter involves a designated service? CDD check triggered automatically. Client intake form sent.
Client identity verified
Individual clients complete biometric KYC. Corporate clients go through KYB with UBO mapping.
Beneficial ownership confirmed
All directors and UBOs identified and verified. Sanctions and PEP screening applied.
Trust account monitored
Client funds received into trust. Amount and source checked against expected transaction value.
Risk reviewed at key milestones
Matter risk reviewed at key stages — unusual changes in scope, value, or parties trigger a re-check.
SMR or clean closeout
Suspicious activity? MLRO prepares SMR. Matter closed cleanly? Records retained for 7 years.
Pricing Recommendation
Recommended
Professional
Law firms handling corporate clients, trust accounts, and complex property matters need full beneficial ownership mapping, trust account monitoring, and MLRO case management workflows.
View full pricingReady to get compliant as a Legal?
Your Legal Pack is configured on day one. 7-day free trial — no credit card, no consultants, no configuration sprints.