Why is my Lawyer Asking more Personal Questions?

 These reforms introduce new compliance requirements for law firms and may change the types of questions lawyers need to ask clients during the course of their legal matter.

Why are the AML laws changing?

The reforms are designed to help prevent money laundering, terrorism financing and other financial crimes.

Similar obligations have applied to banks and financial institutions for many years. From July 2026, certain legal services will also be required to meet these standards.

What information might lawyers need to ask for?

As part of these requirements, law firms may need to verify a client’s identity and obtain additional information about certain transactions, businesses or legal structures.

Depending on the matter, this could include questions about:

• The source of funds being used in a transaction;
• The source of a client’s wealth;
• The ownership or control of companies, trusts or other entities; and
• The purpose and nature of a transaction.

Not every legal matter will require the same level of information. The extent of enquiries will depend on the circumstances and the legal services being provided.

We understand these questions may feel personal

Many clients are accustomed to providing this information to banks, but may not expect similar questions from their lawyer.

We understand that questions about finances, wealth or business structures can feel intrusive. However, these requirements are being introduced by law and will apply across the legal profession.

Where information is required, we will explain what we need, why we need it, and how it will be used.

How Penmans will support you

At Penmans, we are committed to helping clients navigate these changes with confidence.

As the new AML laws take effect, our team will work closely with you to explain the requirements, answer any questions and help keep your matter progressing smoothly.

Any information collected for AML/CTF compliance purposes will be handled in accordance with our professional obligations and privacy requirements.

If you have any questions about Australia’s AML/CTF reforms or what these changes may mean for you, please contact the Penmans team member looking after your matter.