How is legal professional privilege handled?

The legal starter kit is designed so privilege is preserved and the tipping-off obligations are handled carefully.

Do small practices have to comply?

Yes. Practices of any size are in scope when they provide a designated service.

Guide

AML requirements for law firms (2026)

Last updated 8 September 2026

From 1 July 2026, legal practitioners are regulated under AUSTRAC Tranche 2 when they provide a designated service, such as conveyancing, managing client money, or forming companies and trusts. The regime is designed so legal professional privilege is preserved.

What a law firm must do

Identify your designated services and enrol with AUSTRAC.
Adopt AUSTRAC's legal starter kit and complete your risk assessment.
Verify clients, screen them, report when required, train staff, and keep records for seven years.

Legal professional privilege

The starter kit is built so privilege is preserved and the tipping-off rules are handled carefully, so meeting your AML/CTF obligations does not cut across your professional duties.

Senly AML runs AUSTRAC's legal starter kit with privilege respected throughout.

Questions, answered.

Are lawyers regulated under Tranche 2?: Yes, when they provide a designated service such as conveyancing, managing client money, or forming companies and trusts.
How is legal professional privilege handled?: The legal starter kit is designed so privilege is preserved and the tipping-off obligations are handled carefully.
Do small practices have to comply?: Yes. Practices of any size are in scope when they provide a designated service.

See law firm compliance

This guide is general information, not legal advice. The official source is austrac.gov.au.