New AML/CTF Requirements

Important changes are coming for Australian businesses and professional service providers.

From 1 July 2026, new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) requirements will begin to apply to certain accounting services as part of changes introduced by the Australian Government.

These reforms are designed to strengthen Australia's financial system by helping to detect and prevent money laundering, terrorism financing and other serious financial crime. They also bring Australia into closer alignment with international standards by expanding existing AML/CTF obligations beyond banks and financial institutions to include a broader range of professional service providers, including accounting firms.

What is AML/CTF?

AML/CTF laws require accounting firms providing certain designated services to:

• verify the identity of their clients

• understand who they are acting for

• assess the risk of financial crime

• maintain appropriate records and compliance processes.

These are legislative requirements that apply across the accounting profession and are not unique to Hood Sweeney.

What does this mean for you?

To meet these obligations, we are required to undertake Customer Due Diligence (CDD). This involves understanding who our clients are, the services we provide and, where required, maintaining up-to-date client information throughout our relationship.

For most clients, the impact will be minimal. In many cases, we already hold much of the information required, meaning additional requests are expected to be limited.

However, where required, we may ask you to:

• Verify your identity using a secure digital process;

• Confirm details about your business, ownership or control structure;

• Provide information about the purpose of certain services;

• Provide information to support our AML/CTF risk assessment;

• Update information where your circumstances have changed; and

• Periodically confirm or refresh information as part of our ongoing CDD obligations.

Over recent months, Hood Sweeney has been preparing for these changes by investing in new systems and training to ensure we can meet these regulatory obligations while continuing to provide a seamless client experience. We have chosen to absorb the cost of implementing our AML/CTF compliance program and will not charge an initial AML onboarding charge.

However, AML/CTF compliance is an ongoing regulatory obligation for certain services. Where ongoing compliance is required, a nominal annual AML/CTF compliance charge will apply. Your AML/CTF risk assessment determines the level of ongoing CDD required, and the charge will be reflective of the ongoing compliance activities associated with those obligations.

Clients who do not receive services requiring ongoing AML/CTF compliance will not incur an annual AML/CTF compliance fee.

Our focus is to adhere to these regulatory obligations while making the process as simple, secure and efficient as possible, so that it does not impact our ability to service you effectively.

If you have any questions, please contact your Hood Sweeney adviser.