From 1 July 2026, significant changes to Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime will come into effect under the Federal Government’s “Tranche 2” reforms.

These reforms extend AML/CTF obligations to accounting, advisory, and other professional service providers delivering certain designated services. As a result, Power Tynan will be required to implement enhanced client due diligence, identification, and verification procedures across a range of services.

What does this mean for you?

For most existing clients, there will be little or no immediate impact. You can continue working with us as you do today.

However, there may be circumstances where we are required to request additional information or documentation to comply with our legal obligations.

This may include confirming:

• Your identity
• Your business ownership structure
• Directors, shareholders, trustees or beneficiaries
• The purpose of a transaction or engagement
• The source of funds involved in certain matters

Why Is This Happening?

Money laundering and financial crime can affect businesses, communities and the broader economy. The new AML/CTF requirements are designed to help professional service providers:

• Better understand who they are acting for
• Identify and manage potential risks
• Protect legitimate businesses from misuse
• Support the integrity of Australia’s financial system

These requirements are now being extended to a range of professional services sectors, including accounting firms.

How Will Your Information Be Protected?

Any information collected as part of our AML/CTF obligations will be handled in accordance with our privacy obligations and applicable laws.

We will only request information that is reasonably required to meet our legal and regulatory responsibilities.

Will Existing Clients Need To Be Re-Verified?

In most cases, no.

Existing clients will generally not be required to immediately provide new identification documents simply because the laws have changed. However, there are situations where we may need to update or verify information we hold.

This will typically occur when there is a change in circumstances or when additional verification is required under the AML/CTF legislation.

What Do You Need To Do Now?

In some cases, you may receive a request from us to complete identity verification via our secure platform.

These requests will be sent directly from Power Tynan and can be completed using standard identification documents, such as a driver licence or passport.

When Might We Need Additional Information?

We may contact you if:

Your business expands internationally

• We may need additional information if overseas entities, transactions or jurisdictions become involved.

Your business ownership or control changes

For example:

• New directors
• New shareholders
• New trustees
• Changes in beneficiaries or controlling individuals

Information differs from our existing records

• We may ask follow-up questions where new information appears inconsistent with our existing records, the purpose of the work we are undertaking, or the nature of our relationship with you.

Our records need updating

• From time to time we may need to confirm that the information we hold remains current and accurate.

Additional verification is required by law

• In some circumstances, AML/CTF legislation may require us to obtain further information or supporting documentation.

You engage us for a new service

• Certain services may require us to collect additional information before we can proceed.

Your circumstances change significantly

• For example, changes to the nature of your business, ownership arrangements or the purpose of an engagement.

AML/CTF Client Frequently Asked Questions (FAQs)

1. Why are you asking for my identification?

From 1 July 2026, accounting firms like ours are required by law to verify the identity of clients before providing certain services.

This is part of Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws, which aim to prevent financial crime and protect the integrity of the financial system.

2. Haven’t you already verified me before? Why am I being asked again?

In some cases, we may need to:

• Re-confirm your identity
• Update your records
• Verify additional information based on the type of engagement

AML/CTF laws require us to maintain up-to-date client information and reassess risk over time, not just at the start of the relationship.

3. What information or documents will I need to provide?

This will depend on your situation, but may include:

• Driver licence or passport
• Proof of address
• Business details (e.g. ABN, company structure)
• Information about directors, shareholders or beneficiaries

For individuals, often a single form of photo ID may be sufficient, depending on the service.

4. Why are you asking about my source of funds or wealth?

We may need to understand where funds involved in a transaction come from.

“Source of funds” simply means where the money for a transaction originated, such as:

• Salary or business income
• Sale of an asset
• Loan or inheritance

This is a standard requirement to ensure funds are legitimate and not linked to financial crime

5. Does this apply to all services?

No - AML/CTF obligations apply when we provide certain “designated services”, such as:

• Setting up companies or trusts
• Assisting with business transactions
• Managing or structuring client funds
• Registered Office for Companies

For other services (like basic tax compliance), these requirements may not apply.

6. Will this delay my work?

It may, particularly if required information is not provided promptly.

We cannot commence certain services until we have completed the required verification, this is a legal obligation.

7. How will my information be used and stored?

Your information will be:

• Collected only where required
• Stored securely
• Used solely for compliance and service delivery purposes

We are required to comply with privacy laws as well as AML/CTF obligations when handling your information.

8. Is this the same as what banks do?

Yes - very similar.

Banks, lenders, and financial institutions have been required to do this for many years. These requirements are now being extended to accountants and other professional advisors such as solicitors and real estate agents.

9. What happens if I don’t provide the information?

If required information is not provided, we may be unable to:

• Act for you
• Commence work
• Complete certain transactions

This is because we must comply with legal obligations under the AML/CTF regime.

10. Are you reporting my information to the government?

No - not as part of normal onboarding.

However, like all regulated entities, we are required to report suspicious activity where we have reasonable grounds to do so under the law.

11. How does this protect me?

These regulations:

• Help prevent fraud and financial crime
• Reduce the risk of identity theft
• Protect legitimate businesses and individuals

They are designed to protect both clients and the broader community.

12. Who do I contact if I have questions?

Please contact your usual Power Tynan advisor, who will guide you through the process and explain any requirements specific to your situation.