Am I Caught? A Plain-English Guide for Small Practices
Not every lawyer, accountant or conveyancer is a reporting entity. Here's how to work out whether the AML/CTF regime applies to your practice — and what to do if it does.
The AML/CTF regime regulates services, not professions. Whether you're caught depends on what you do, not what you call yourself. A tax accountant who never touches trust accounts may not be caught at all. A financial advisor who creates trusts for clients is caught even though "financial advisor" isn't mentioned in the legislation.
AUSTRAC puts it plainly: "It is what you do, not what you are, which is important." The regime doesn't care about your job title. It cares about whether you provide any of the 9 designated services in Table 6 of the Act.
The key test: are you "assisting"?
Six of the nine designated services use the word "assisting." AUSTRAC has drawn a clear line about what this means:
Your actions directly advance a transaction. You are acting on instructions to make something happen.
• Preparing a contract for sale of property
• Drafting a trust deed to establish a trust
• Holding funds in trust for settlement
• Registering a company with ASIC on instructions
• Preparing a share sale agreement
You are merely influencing how the client proceeds, giving general advice, or providing ancillary services.
• Discussing pros and cons of buying property
• Advising on the legal effect of contract terms
• Providing a simple referral
• Preparing financial statements
• General business advisory
Quick guide by practice area
Family law — mostly safe
Advising on the family home, drafting consent orders, mediating property settlements — none of these directly advance a real estate transaction. The court order exemption covers most transfers. Binding financial agreements are also not caught. However: the conveyancer or lawyer who implements the property transfer after a financial agreement (without a court order) is providing a designated service.
Wills & estates — mostly safe
Drafting wills (including testamentary trusts), obtaining grants of probate, administering deceased estates, and transfers by survivorship are all unlikely to be designated services. Exception: creating inter vivos trusts for estate planning is caught (Item 6).
Litigation — generally not caught
AUSTRAC's starting position is that dispute resolution services are generally not designated services because they relate to matters that have already occurred. But be cautious: if settlement negotiations result in a property transfer without a court order, that implementation work may be caught.
Legal aid & pro bono — mixed
Legal aid work has been confirmed as not triggering AML/CTF obligations. However, pro bono work is not exempt — AUSTRAC considers it still "in the course of carrying on a business" even if done for free.
Commercial / property / corporate — you're caught
If you do conveyancing, company formations, trust establishments, business sales, capital raisings, or hold client money in trust for transactions — you are providing designated services. The obligation starts when you act on instructions to implement a transaction, typically when there's at least one buyer and one seller.
Barristers — the exemption and its limits
If you're a barrister working on instructions from a solicitor in connection with a designated service, you're exempt under section 6B of the Act. This exemption exists because barristers typically don't facilitate transactions or have control over CDD processes.
Watch out: The exemption does not apply if you're instructed by an in-house solicitor employed by the client (e.g., a bank's legal department) — because there's no intermediary. That's treated as direct access. And it does not apply to pro bono direct-access work.
What to do right now
This article draws on public statements by AUSTRAC's CEO Brendan Thomas and industry experts across multiple events. Key sources:
Disclaimer: This article is published by GetPost Labs Pty Ltd, a technology company building compliance software. All content is for educational purposes only and does not constitute legal, financial, or compliance advice. While we make every effort to ensure accuracy, this article may contain errors or omissions. Always refer to the authoritative text on legislation.gov.au and seek professional advice for your specific circumstances. If you spot an error or have a suggestion, please reach out to sumit@getpostlabs.io.