From 1 July 2026, firms that become AUSTRAC reporting entities under the Tranche 2 reforms will need to notify their clients that identity verification requirements now apply. This template provides a ready-to-send email suitable for accounting firms, law firms, and real estate agencies.
Before sending: Replace all [bracketed placeholders] with your firm's details. The template references VerifiMe as the identity verification provider — if your firm uses a different provider, update this section accordingly.
What this template covers
Why the AML/CTF changes apply and who they affect
What clients will be asked to do and when
How identity verification works via VerifiMe
How client information is stored, retained, and protected
Email template
Subject: Important notice — upcoming changes to how we verify client identity
Dear [Client First Name],
We wanted to give you advance notice of an important regulatory change that will affect how [accounting firms / law firms / real estate agencies] operate from 1 July 2026.
The Australian Government is extending its anti-money laundering and counter-terrorism financing (AML/CTF) laws to cover a range of professional services — including those commonly provided by [accountants / lawyers / real estate agents]. These rules are administered by AUSTRAC and have applied to banks, lenders, and other financial institutions for nearly two decades.
In practical terms, this means that for certain types of work we will be required to verify your identity and collect some additional information before we can proceed.
WHAT IS CHANGING?
From 1 July 2026, where we provide services that fall within the scope of the AML/CTF legislation, we will be required to:
• Verify your identity
• Understand who we are acting for, including the beneficial ownership of any entities involved
• Assess the nature and purpose of the engagement
WHAT THIS MEANS FOR YOU
To ensure we can continue delivering a high-quality, efficient service without unnecessary delays, we will be completing identity verification requirements for all clients as part of our standard processes. This will allow us to meet our compliance obligations while continuing to assist you promptly and effectively.
As we continue to act for you, you will be asked to:
• Review and accept our engagement terms prior to the commencement of services
• Verify your identity — this will typically be done electronically via a secure, government-accredited verification service
• Confirm your personal details, residential address, and up-to-date contact information
• If the matter involves an entity (company, trust, SMSF, or partnership), provide relevant registration documents
• In certain circumstances, we may also ask about the source of funds for a transaction, or whether you or a close family member hold a senior public position
These are standard legal requirements that apply equally across all firms — not a reflection of any concern about you personally.
HOW WE WILL VERIFY YOUR IDENTITY
VerifiMe is a Gateway Service Provider (GSP), this means identity documents are checked in real time against the issuing government authority — the same infrastructure used by Australian banks and financial institutions.
As part of our own AML/CTF obligations, we have undertaken due diligence on VerifiMe as a third-party service provider and are satisfied they meet the required standards. Your verification will be conducted securely and in accordance with Australian privacy law.
For most clients, the electronic verification process takes only a few minutes and can be completed from your phone or computer.
WHAT YOU NEED TO DO NOW
Nothing at this stage.
We are providing this notice in advance so there are no surprises. The timing for completing these requirements will vary from client to client and will typically be triggered when you next engage us for a new matter or at the commencement of the [financial year / new instruction / transaction].
We will guide you through the process when the time comes. For the vast majority of clients, it will be straightforward.
YOUR INFORMATION
Any information collected is used solely to meet our legal obligations under AML/CTF laws. We are required to retain certain records for a minimum of seven years. All information is handled in accordance with Australian privacy legislation and will not be used for marketing purposes or shared with third parties, other than as required by law.
QUESTIONS?
If you would like to understand how these changes will apply to you specifically, please do not hesitate to contact us.
We appreciate that additional administrative steps are not always welcome. We will do everything we can to make the process as smooth and efficient as possible.
Many thanks,
[Your Name]
[Your Title]
[Firm Name]
[Phone / Email]
Customisation tips
Accountants: change the trigger line to "your annual tax return or company review"
Lawyers: change to "commencement of a new matter or transaction"
Real estate agents: change to "commencement of a new sale, purchase, or lease instruction"
If sending to a company or trust, address the email to the authorised contact and note that entity documents will also be required
This email is intentionally non-specific about fees — if your firm charges separately for AML compliance work, add a short sentence to the "What this means for you" section