Update on AML/CTF reforms

05/09/2024

The Federal Government has committed to expansion of the anti-money laundering (AML/CTF) regime to ‘tranche two’ entities, including lawyers. Public consultation on the proposed reforms has recently concluded. The NSW Bar Association has advocated strongly for a specific exemption for barristers from the operation of the AML/CTF Act and for increased safeguards for client legal privilege.

While the scope of the anticipated reforms is not yet known, it is important for all practitioners to be aware of potential risk of money laundering in the legal sector. The Law Council has prepared National Legal Profession AML/CTF Guidance for this purpose. Barristers may be interested to review these documents to help them understand the principles that guide the thinking and actions of their instructing solicitors and to develop their understanding of the issues and the steps being taken to prevent them.

Further updates on the AML/CTF reforms will be provided in due course.