AML/CTF for law firms: designated services, privilege and client checks

AUSTRAC's professional designated services guidance applies the same way to lawyers as to other professionals. A firm provides a designated service when it takes active steps that directly advance a specified transaction, or the creation or restructure of an entity, with a geographical link to Australia. Giving legal advice, or providing an ancillary service that merely influences a transaction, is not enough on its own.

In practice, the services most likely to be captured include assisting with real estate transfers, the sale or transfer of control of a company or trust, creating or restructuring entities, arranging finance for an entity, and receiving, holding or controlling client money or property to advance one of those transactions. Many litigation, employment and advisory matters will not involve a designated service, but each matter type needs to be assessed.

Legal professional privilege has its own rules and exceptions under the reforms. It is not a blanket exemption from AML/CTF obligations, and it does not remove the need for customer due diligence. Read AUSTRAC's guidance and your professional body's materials on how privilege interacts with reporting.

If your firm provides designated services, obligations have applied since 1 July 2026. Matter intake is the natural point to classify the matter and start checks.