Why Your Lawyer Might Ask You More Questions Next Year

man-in-white-suit-sitting-on-chair-with-people

From 2026, lawyers across Australia will be required to ask clients some extra questions before starting work. Don’t worry — it’s not because your lawyer has suddenly become nosy! It’s due to new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws, designed to protect the integrity of our financial system.

These changes mean lawyers will join banks, accountants, and other professionals in carrying out Customer Due Diligence (CDD) checks.

What does this mean for you?

When you engage a lawyer, you may be asked for:

  • Proof of identity – such as your driver’s licence or passport.
  • Source of funds – where the money involved in your matter is coming from.
  • Purpose of the matter – why the transaction or service is being carried out.
  • Risk checks – to see if you fall into higher-risk categories (e.g. if you’re a politically exposed person or subject to financial sanctions).

Ongoing checks

Even after the initial process, your lawyer may need to:

  • Update your details if your circumstances change.
  • Monitor transactions that seem unusual.
  • Reconfirm information if there are new risks identified.

For most clients, this will be straightforward, and providing the required information will only take a few minutes.

Why are these changes happening?

The goal is simple: to stop Australia’s financial and legal systems from being misused for money laundering, terrorism financing, or sanctions breaches. By asking these questions, lawyers can help ensure that legal services are used for the right reasons.

What you need to do

All you need to do is:

  • Be prepared to provide identification and answer a few questions.
  • Respond promptly if your lawyer requests additional information.
  • It’s really no different to what you already do when opening a bank account or applying for a loan.

Final thoughts

So, if your lawyer asks you a few more questions in 2026, don’t be alarmed. It’s not personal, and it’s not about making things harder — it’s simply the law. These changes help protect you, your lawyer, and the wider community.

For more information, you can visit AUSTRAC’s summary of AML/CTF obligations here: AUSTRAC AML/CTF Reform.