The legal industry is facing many new data and privacy compliance changes, especially for firms that handle property transfers, company restructuring, or client funds. These changes are part of Australia’s updated anti-money laundering laws, and they mean a lot more responsibility when it comes to collecting, storing, and protecting client data.
What’s Changing?
From July 1, 2026, many Australian law firms will be expected to meet new rules around anti-money laundering (AML). If your firm provides “designated services” like helping clients buy property, move money, or set up companies, you may be considered a reporting entity under the updated legislation. That means:
- You’ll need to enrol with AUSTRAC
- Set up a compliance program
- Verify client identities
- Monitor transactions
- Report suspicious activity
- Keep secure records
These changes will affect everything from data storage to client identity verification practices. Preparing now will make all the difference. Start looking at your current IT systems in security and data management.
Why Your Data Setup Matters
Meeting these new requirements isn’t just about forms and checklists. It’s about how you manage data, full stop. That means collecting the correct information, storing it securely, and being able to pull it up when needed.
The following checklist is critical for firms to start doing now:
- Review your current systems to make sure you’re ready to handle compliance-related tasks like client onboarding, identity checks, and transaction monitoring
- Store sensitive data securely, using encryption and secure cloud storage that keeps you compliant with the Privacy Act and international standards
- Set up access controls so only the right people can view or change client data
- Automate key parts of your compliance workflow, so you’re not chasing spreadsheets when reporting deadlines hit
- Prepare for risk assessments by helping you track client types, service areas, and jurisdictions—all things you’ll need to understand and document under the new laws
Data Privacy is Changing Too
If your firm isn’t currently covered by the Privacy Act, becoming a reporting entity under AML could change that. Once you start collecting personal information for compliance purposes, you may need to meet new privacy standards—even if you were previously exempt.
This is another area where IT support makes life easier. A good provider can help you:
- Build systems that align with both AML and privacy obligations
- Add extra layers of security, like multi-factor authentication
- Put data access policies in place to reduce risk
Don’t Wait Until It’s Urgent
Setting up your compliance systems shouldn’t be a last-minute scramble. Starting now gives you time to:
- Identify someone in your firm to lead the compliance program
- Explore training options for your team
- Work with your IT provider to design tools and processes that make your day-to-day operations efficient and straightforward
Next Steps
These changes are a year away, but the transition of systems and processes will be simpler by breaking them down into smaller steps. They’re manageable with thoughtful preparation and the right tech in place. Whether protecting client data, setting up new processes, or keeping your systems compliant with local and international privacy standards, many software-based solutions make these processes simpler and faster.
Need help reviewing your current setup or figuring out where to start? Contact your IT provider or get in touch with any questions.
