AML/CTF Reforms: What Legal Practitioners Have Learned
New InFocus vodcast brings together legal practitioners and financial crime experts to unpack what’s really happening inside firms following the introduction of Tranche 2 AML/CTF obligations.
As Australia’s legal profession continues to navigate the new AML/CTF regime, three practitioners at the coalface have shared the lessons, challenges and unexpected realities emerging from the first months of implementation.
The latest episode of InfoTrack’s InFocus vodcast series, The Practitioners of AML, brings together Renee Romanos, founder and principal lawyer at Renee Romanos Legal; Joseph Khoury Gebrail, managing principal at KGCo Legal; and Richard Storey, partner, risk consulting at Grant Thornton, to discuss what the reforms look like in practice, beyond the legislation and guidance.
The conversation explores everything from client education and staff training to risk assessments, source of funds checks, reliance agreements, ongoing monitoring and the importance of applying professional judgement when something does not look right.
For Romanos and Khoury Gebrail, one of the biggest surprises has been clients' willingness to engage with the new requirements once they understand why information is being requested.
‘Educate first’ emerged as a recurring theme throughout the discussion, with the practitioners highlighting the importance of giving clients time to understand the purpose behind AML/CTF checks rather than simply presenting them with another compliance requirement.
But the discussion also revealed how easily firms can overcomplicate the process.
Storey, who has almost 30 years’ experience working across financial crime risk, said the risk-based nature of the regime can make it difficult for firms to determine how much information they actually need to collect.
‘The AML Act and the rules aren’t exactly prescriptive’, he explained, emphasising the need for firms to balance gathering sufficient information with avoiding unnecessary administrative work.
Together, the panellists emphasise that effective AML/CTF compliance is not about creating the most complicated process. It is about establishing a practical, risk-based approach, empowering staff to understand their responsibilities, using technology effectively and knowing when to stop and investigate something that does not feel right.
The discussion also tackles some of the more difficult questions facing practitioners, including what happens when a long-standing client refuses to participate in AML checks, who ultimately makes the call on a high-risk client, what firms should do when a client’s circumstances change mid-transaction and how practitioners can respond when something suspicious is identified.
‘Don’t over-cook it’ became one of the episode’s defining messages.
With implementation continuing to evolve, the panel also acknowledges that firms are still learning and refining their processes, and that adapting those processes as lessons emerge is part of building an effective AML/CTF program.
Watch the full conversation on demand as part of InfoTrack’s InFocus series.
About InfoTrack
InfoTrack integrates workflow automation, regulatory compliance, AI-driven intelligence and Australia’s most trusted data sources into a single, premium platform. Designed with compliance at its core, the platform enables law firms, conveyancers, real estate professionals and financial institutions to manage governance, risk, client due diligence and reporting efficiently. With intelligent workflows, built-in safeguards and adaptable processes, InfoTrack empowers teams to focus on business objectives while staying aligned with evolving regulatory requirements and delivering informed, reliable outcomes for clients.