Solicitors Welcome AUSTRAC Assurances on AML/CTF
Australia’s largest legal membership body has welcomed assurances from the head of AUSTRAC that criminals are its focus, as thousands of solicitors prepare to meet new obligations under the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime.
President of the Law Society of New South Wales, Ronan MacSweeney, said legal practice principals, particularly those managing small practices, may take comfort from the remarks by AUSTRAC CEO Brendan Thomas that ‘administrative glitches’ won’t be punished, as the so-called Tranche 2 reforms commence on 1 July 2026.
“Solicitors both guard the rule of law and adhere to it. Therefore, we are committed to playing our part in helping to eliminate the scourges of money-laundering and the funding of terrorism. That’s why it’s reassuring that Mr Thomas has recognised the pressure that many legal practices are under, particularly sole practitioners and those in small practices, as they prepare to meet new obligations under the Tranche 2 reforms,” Mr MacSweeney said.
In an interview published in the March edition of the Law Society Journal, Mr Thomas said:
“Our business is to make it hard for criminals to profit from their crime, not to prosecute small businesses for administrative glitches. We don’t do that, and we have no intention of doing that when these new laws apply.”
Mr MacSweeney emphasised that, while it is comforting that AUSTRAC is not expecting perfection, law practices should make every effort to comply with their AML/CTF obligations. If a practice provides ‘designated services’ under the reforms, it must enrol with AUSTRAC, with enrolments opening on 31 March.
The Law Society will continue to collaborate closely with AUSTRAC so that our profession has the resources and support it needs to meet its compliance obligations, which will commence on 1 July.
“Given the potential impact of these obligations on legal practices, I’ve made my first President’s Priority for 2026 to support the profession to meet its regulatory obligations, including compliance with the AML/CTF reforms. We are continually updating our AML/CTF Hub, making it available to all solicitors, whether or not they are members of the Law Society,” Mr MacSweeney said.
“I’m delighted that Mr Thomas has drawn on his time as CEO of Legal Aid NSW, in recognising the importance of small legal practices, which he’s described as a ‘bulwark of our democracy.”
Mr Thomas told the Law Society Journal that the "justice system wouldn’t function, particularly beyond Sydney in country towns, if it weren’t for small legal practices. People wouldn’t be able to access their rights or enforce the law if it weren’t for them."
