Why Is My Accountant Asking for More Information? The Real Reason Behind Australia's New AML Laws

Written by Chris Simmons, Managing Director & CEO, MJC Partners

If your accountant has recently asked for updated identification, additional documentation or more detailed information about your business structure, you are not alone and you have not done anything wrong.

From 1 July 2026, Australia’s new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws came into effect. These reforms expand the compliance obligations of accounting firms, meaning more questions, more verification and more paperwork for clients across the country.

It is completely understandable to find this frustrating, especially if you have been a client of your accountant for many years and nothing about your circumstances has changed.

But understanding why these laws exist might just change how you feel about them.

The AML/CTF legislation is not designed to inconvenience good clients or cast doubt on their honesty. The purpose is to make it significantly harder for criminals to use legitimate professional services  (accountants, lawyers, conveyancers) to hide or move money connected to organised crime, drug trafficking, human exploitation, scams and terrorism financing.

That is not a small thing.

Research by the Australian Institute of Criminology found that every year a criminal group is able to launder funds, the crime-related harm they cause to the community increases by 49%. Disrupting money laundering is one of the most effective ways to disrupt serious crime itself.

Money laundering enables drug trafficking, people smuggling, fraud, corruption and exploitation. Terrorism financing provides the means for terrorist organisations to cause harm. These are not abstract concepts. They affect real people and real communities, including the communities most of us live and work in every day.

Why accountants specifically?

Professional service firms have historically been used by criminals to structure transactions, set up entities and move money in ways that are difficult to trace. Not because the professionals themselves were doing anything wrong but because their involvement lends an air of legitimacy to otherwise suspicious activity.

The new laws close that gap. By requiring accountants to verify client identity, understand ownership structures and assess the purpose of certain transactions, the system makes it significantly harder for criminal money to flow through legitimate professional channels.

Australia was actually one of the last comparable countries to extend these obligations to accounting professionals. The Financial Action Task Force (FATF) (the global financial crime watchdog) sets the international standard, and most of our peers have had similar requirements in place for years.

What does this mean for you in practice?

In short, more questions, more verification and potentially some additional paperwork, particularly if you are establishing a new structure, purchasing a business or undertaking more complex transactions. Both new and long-standing clients may be asked to provide or update their identification and business details. None of this is a reflection on your character or your affairs.

For a full breakdown of what to expect, read our earlier article: AML Requirements: What Our Clients Need to Know.

You are part of the solution

Here is a way of looking at it that we think is worth considering.

Every client who provides their identification and cooperates with these requirements is, in a very real sense, contributing to that effort. The good clients, the honest businesses, the long-standing relationships are exactly who these laws are designed to protect. The small inconvenience of an extra document is part of what makes the system work.

Some people will still find it frustrating. That is completely fair.

But if understanding the reason behind it makes even a small difference and it shifts the experience from “why is my accountant asking me this?” to “I get it, and I’m happy to help”, then we think it is worth explaining.

What to expect from MJC Partners

Any requests we make for updated identification or documentation reflect our obligations under the new framework, not any concern about you personally. We will always make the process as straightforward as possible and are happy to explain why any particular information is needed.

If you ever receive a request and are unsure whether it is genuinely from MJC Partners, please contact our office directly before responding.