AML for Lawyers: The New Regime Examined and Explained – 5 program recorded series

Program 1:  Lawyers in the Crosshairs – The New AML Regime and the Hidden Risks in Everyday Practice

Australia’s long-delayed Tranche 2 reforms will finally bring lawyers within the AML/CTF framework — and with it, a seismic shift in how legal practices must operate. This opening session unpacks the policy and regulatory forces driving the change, what services will fall within scope, and how ordinary legal work can expose firms to extraordinary risk. It blends big-picture context with on-the-ground reality, setting the stage for the sessions that follow.  It covers:

• The policy and global pressures driving Tranche 2 and its likely rollout timeline
• Which legal services fall within scope and what this means for different practice areas
• How criminal networks have used legitimate legal structures, trust accounts and transactions to conceal or move illicit funds
• The red flags and transaction patterns AUSTRAC and professional bodies are prioritising for early enforcement
• What steps firms should take now to prepare for registration, supervision and enforcement

Program 2:  Know Your Client, Protect Your Practice – Mastering Customer Due Diligence

Getting client verification right is the cornerstone of AML compliance — and one of the most practical challenges lawyers will face under Tranche 2. This session steps through the real-world process of Customer Due Diligence (CDD): when it applies, what information must be gathered, and how to do it efficiently without alienating clients. With a focus on proportionality, professionalism, and communication, you’ll learn how to turn this compliance obligation into a seamless part of your client intake process. It covers:

• When CDD applies – onboarding, transactions and triggers
• How to identify beneficial owners and politically exposed persons (PEPs)
• When to apply enhanced due diligence, and what that looks like for higher-risk clients or complex structures
• Verification tools, data retention and audit trails
• Communicating AML obligations to clients clearly and tactfully
• Adjusting engagement letters and terms of business
• Recovering compliance costs through pricing and scope adjustments
• Managing pushback and delays during verification
• Handling incomplete or suspicious client information

Program 3:  Designing a Compliant Firm – Building an AML Program That Works in Practice

A firm’s AML/CTF program is more than a compliance document, it’s the backbone of your defence if the regulator comes calling. This session unpacks what an effective, risk-based program looks like for legal practices of all sizes. You’ll learn how to translate AUSTRAC’s formal requirements into practical systems that reflect your firm’s structure, culture and client mix. From appointing a compliance officer to embedding ongoing review, this session shows how to move from obligation to implementation, and create a program that actually works in practice. It covers:

• Appointing and empowering your AML compliance officer
• Developing firm policies and procedures that align with professional rules
• How to embed training, supervision and escalation pathways that drive staff buy-in and accountability
  Developing a compliance culture — how leadership tone, workflow design and internal communication reinforce AML awareness
  Monitoring, testing and auditing your AML framework to ensure ongoing effectiveness
  Using compliance reviews not just to tick boxes, but to demonstrate “reasonable steps” if ever challenged by AUSTRAC or your law society

Program 4:  Reporting Without Panic – Managing AUSTRAC Engagement and Suspicious Matters

Reporting obligations are where compliance theory meets real-world judgment. This session unpacks when and how lawyers may need to report, how to engage constructively with AUSTRAC, and how to manage the professional and client-relationship pressures that come with it. It covers:

• The key types of reports — Suspicious Matter Reports (SMRs), Threshold Transaction Reports (TTRs), and International Funds Transfer Instructions (IFTIs) — and when each may apply in a legal context
• How to recognise when “suspicion” is triggered and the importance of internal escalation before deciding to report
• How to manage tipping-off risk and maintain client confidence and your ethical obligations while meeting statutory duties
• What AUSTRAC expects from legal professionals in practice — tone, cooperation and documentation standards
• How to prepare for independent evaluations and the annual AUSTRAC compliance report and respond to compliance audits, evaluation report recommendations and information requests
• Lessons from AUSTRAC enforcement actions in other sectors — what AUSTRAC looks for when assessing culture, control, and responsiveness
• Why good-faith engagement and record-keeping are your best protection if something goes wrong

Program 5:  Ethics, Privilege and Professional Integrity – Navigating the Grey Areas

AML obligations don’t just test a firm’s systems, they test its values. This session tackles the ethical and professional dilemmas that arise when compliance duties collide with confidentiality, privilege, and loyalty to the client. Through practical examples and reasoned frameworks, it explores:

• Interaction between legal professional privilege and AML obligations
• Managing conflicts between client confidentiality and reporting duties
• When to decline instructions, withdraw from a matter, or escalate concerns internally
• Frameworks for ethical decision-making when obligations pull in different directions
• How to demonstrate integrity, proportionality and good-faith compliance if your decisions are later reviewed by a regulator or disciplinary body
• The importance of contemporaneous documentation