IN EFFECT - These obligations, known as the Tranche 2 reforms, commenced 1 July 2026. Firms already providing designated services on that date are required to enrol with AUSTRAC by 29 July 2026

From 1 July 2026, Royce Standard is a reporting entity under Australia's anti-money laundering and counter-terrorism financing (AML/CTF) laws. This is part of a wider reform extending these obligations to accountants and other professional service providers for the first time. This article explains why it applies to us, what it means in practice, and what we'll need from you as a client.

Why This Applies to Us

AML/CTF obligations previously applied mainly to banks, casinos and remittance providers. The Tranche 2 reforms extend the same framework, under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (as amended), to professions long recognised internationally as vulnerable to misuse for money laundering — including accountants, lawyers, real estate professionals, and providers of trust and company services.

The obligation is triggered by the specific service provided, not by the profession as a whole. For an accounting practice, this generally means services such as assisting with company or trust formation, or managing client funds or assets as part of an engagement. Routine tax return preparation, bookkeeping and general advisory work are not designated services in themselves, and do not on their own bring an engagement into scope.

What We'll Need From You

Depending on the nature of your matter, we may ask you to provide:

• Identification documents.
• Details of individuals who own or control an entity, including beneficial owners and controlling persons.
• Information about a transaction, including the purpose of the transaction and the source of funds.
• Updated information if circumstances change during the course of the engagement.

We will only request information that is reasonably necessary to satisfy our legal and regulatory obligations.

How Your Information Is Handled

Information collected for AML/CTF purposes is used only for that purpose, and held in line with the AML/CTF Act, the Privacy Act 1988 (Cth), and our other legal obligations. Records must generally be kept for seven years, and we're required to lodge an annual compliance report with AUSTRAC summarising how we've met our obligations.

One aspect of the law is worth stating plainly: where we're required to report a suspicious matter to AUSTRAC, the law prohibits us from telling you that we've done so. This applies to every accounting and advisory firm covered by these laws — it's a feature of the legislation itself, not a judgement about any individual client or engagement.

Sources & References

AUSTRAC: Your obligations
Department of Home Affairs: What it means to be regulated under the AML/CTF regime