If you’ve recently been asked for identification documents, ownership details, or information about your business structure, you’re not alone. AML compliance for business owners has become a key requirement under Australia’s expanded Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime. As accountants, we’re now required to undertake additional verification procedures to help protect Australia’s financial system and ensure we know who we’re acting for.
What Information Will We Need?
Depending on the type of entity and service requested, we may need to verify:
Individual Clients
You may be asked to provide:
- Full legal name
- Date of birth
- Residential address
- Mobile number
- Driver’s Licence or Passport identification
- Place of birth
Companies
For companies, we may also need information relating to:
- Directors
- Shareholders
- Ultimate beneficial owners
- Individuals exercising control over the business
Trusts
For trusts, additional identification may be required for:
- Trustees
- Appointors
- Controllers
- Beneficiaries
- Individuals with significant influence over the trust
These requirements form part of the “Know Your Client” obligations imposed under the AML/CTF framework.
What Happens When Your Structure Changes?
This is where many clients may be surprised.
AML compliance isn’t simply completed once and forgotten forever.
Certain changes within your business or investment structures may trigger fresh verification requirements.
You May Need To Update Information When:
– A new company is established
– A trust is created
– New directors are appointed
– Shareholders change
– Beneficiaries are added or removed
– Units in a unit trust are transferred
– New trustees are appointed
– A family trust appointor changes
– New business partners join
– Ownership percentages change
– A business is sold or restructured
When these events occur, we may need to obtain updated documentation before providing further services.
Think of it as updating your passport details with a bank. The information must remain current and accurate.
Bringing On New Entities?
Many clients operate multiple entities including:
- Trading companies
- Investment companies
- Family trusts
- Unit trusts
- Self-Managed Super Funds
- Property holding entities
Even if we already act for you personally, a newly established entity may require its own verification process.
For example:
If we already know you personally but you establish a new discretionary trust, we may still need documentation relating to:
- The trustee
- Key controllers
- Beneficiaries
- Source of funds
This is completely normal under the new requirements.
Why Are We Asking About Source of Funds?
In some circumstances, we may ask questions such as:
- Where did the purchase funds come from?
- How was an investment accumulated?
- Is finance involved?
- Are cryptocurrencies being used?
- Who is ultimately benefiting from the transaction?
These questions don’t imply any wrongdoing.
The AML legislation requires advisers to understand the nature and purpose of certain transactions and to verify information where appropriate.
Will It Cost Anything?
Possibly.
In straightforward situations, the process will generally be quick and inexpensive.
However, more complex structures involving multiple trusts, companies, overseas ownership interests or layered entities may require additional verification work, document reviews and external searches.
If any additional costs are involved, we’ll discuss those with you before proceeding wherever possible.
How Can You Make The Process Easier?
The easiest approach is to let us know early if you’re:
- Establishing a new entity
- Changing ownership structures
- Adding directors or shareholders
- Buying or selling a business
- Updating trust arrangements
- Bringing in investors or partners
The earlier we’re involved, the smoother the process will be.
The Bottom Line
The new AML/CTF rules are now part of doing business in Australia.
While there will be some additional administration, the goal is simple: protecting the integrity of Australia’s financial system and ensuring professional advisers understand who they are acting for.
If we’re requesting information from you, it’s simply because we’re required to do so under the new legislation and professional standards.
As always, our team is here to guide you through the process and make it as painless as possible.
And yes, we’ll keep the paperwork to the absolute minimum whenever we can.
Need Help With A Structure Change?
Planning a new company, trust restructure, business acquisition or ownership change?
Speak with the Tactica Partners team before making changes so we can help ensure everything is compliant and avoid delays later.
📞 (08) 9387 5637
📧 info@tacticapartners.com.au
