Law Council President's Message – September 2025
5 September 2025
AML, AML, AML!
While there are plenty of priorities the Law Council is focused on, there is no denying that these three little letters are beating a constant refrain in my mind.
The Law Council is working hard to resolve the issues it believes still exist in terms of roll out of the new Anti-Money Laundering and Counter Terrorism Financing (AML/CTF) Regime. We fortunately have found the relevant agencies and Ministers open to consultation, but whether our concerns are resolved remains to be seen.
So, what are our concerns?
There are more than a few.
The AML/CTF regime will apply to members of the legal profession that provide ‘designated services’ under the AML Act from 1 March 2026.
While the AML Act has passed into law and is thus ‘settled’, other important parts of the legal framework for the AML/CTF regime remain unsettled. Importantly, the AML/CTF Rules, which will shape and give effect to the AML Act’s obligations, are still being developed, as are guidance materials and ‘starter packs’ for small businesses. AUSTRAC is spearheading this work.
We are working closely with AUSTRAC as it carries out this important work, in an effort to ensure that the AML/CTF Rules and AUSTRAC guidance materials are fit-for-purpose, proportionate, and appropriate to the legal profession.
Concurrently, we have been working with other regulatory agencies and departments regarding aspects of the AML Regime that fall within their purview, and which are particularly salient to the legal profession. Notably, we have been working with the Office of the Australian Information Commissioner to ensure they provide clarity to the legal profession on the scope of application of the Privacy Act, and the interaction between the Privacy Act and the AML Act.
We have also been working with the Attorney-General’s Department in relation to legal professional privilege in the context of the AML Act.
The AML/CTF reforms will impact the legal profession’s capacity to perform duties, and meet obligations, that are unique to the profession. In particular, the profession’s duty to the Court and administration of justice and a legal professional’s fundamental obligations to their client.
The Law Council is fundamentally opposed to any legislation that would seek to co-opt legal professionals to act as informants on their clients. For this reason, we have significant concerns about the application of aspects of the AML Act, including the suspicious matter reporting obligation and the tipping off provisions, to the legal profession.
We have engaged in sustained advocacy to convince AUSTRAC of the need to provide exemptions from the operation of the AML Act for segments of the legal profession, including the legal assistance sector (including when provided by the private profession, and legal aid services provided by Aboriginal and Torres Strait Islander Legal Services), barristers providing pro bono services pursuant to a direct court referral; Law Societies, state authorities, and third-party managers captured by the AML/CTF framework in the exercise of a statutory framework, among several others.
One major concern the Law Council has held since extension of the AML/CTF regime to the legal profession was first proposed, is the potential impact of the associated costs and regulatory compliance burden.
Sadly, our concerns have been validated, and heightened, by new research conducted by the Law Institute of Victoria in conjunction with Cube Group.
The Benchmarking Report warns of rising costs and operational challenges being faced by small to medium legal practices across Victoria.
Even before the AML/CTF requirements come into force, these firms named maintaining compliance with regulatory and other requirements the number one challenge they face. Also in the top ten was adapting to and implementing regulatory changes.
These findings will be very valuable as we continue to seek to correct the course of AML/CTF in coming months.
Law Council President
Juliana Warner
Last Updated on 11/12/2025
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