Anti-Money Laundering & Client Verification
At Balwyn Legal, we take our professional and regulatory obligations seriously.
Depending on the type of matter, we may ask you to verify your identity, confirm your authority to act, provide entity ownership information, and in some matters provide information about the source of funds or source of wealth connected with a transaction.
These checks help protect our practice, our clients, and the broader community from fraud, money laundering, sanctions breaches, and other improper conduct.
Why we may ask for identification
Depending on the service you ask us to provide, Balwyn Legal may be required by law, or may decide as part of its risk management and professional obligations, to verify:
who you are
whether you are acting on your own behalf or for another person or entity
who ultimately owns or controls a company, trust, partnership or other structure
the nature and purpose of the transaction
whether additional checks are required because of the source of funds, sanctions, or politically exposed person risk
AUSTRAC’s guidance explains that regulated entities must identify customers before providing designated services, collect and verify customer and beneficial ownership information, and in some circumstances establish source of funds, source of wealth, politically exposed person status, and sanctions exposure.
Matters more likely to require enhanced verification
Enhanced verification is more likely to be required where the matter involves, or appears to involve, one or more of the following:
real estate or conveyancing transactions
the creation, restructure, sale or transfer of a company, trust, partnership or other legal arrangement
receiving, holding, controlling or managing money, securities, virtual assets or other property as part of a transaction
corporate or trust financing transactions
nominee, officeholder or registered office arrangements
complex ownership structures, overseas parties, or unusual transaction patterns
Those categories reflect AUSTRAC’s current professional-services guidance on the designated services brought into the AML/CTF regime for lawyers and similar professional service providers.
What we may ask from individuals
If you are an individual client, we may ask for:
your full legal name
date of birth
residential address
a current photographic identification document or other reliable identification documents
evidence of authority if you are acting for another person
AUSTRAC’s guidance says customer information must be verified using reliable and independent documentation or electronic data, which may include documents such as a driver licence, passport, proof of age card, or other accepted identification materials.
What we may ask from companies, trusts and other entities
If you are instructing us through a company, trust, partnership or other entity, we may ask for:
the full legal name of the entity
ACN, ABN or registration details where applicable
names of directors, trustees, partners or officeholders
trust deed, partnership agreement, constitution or ASIC records where relevant
details of the persons who ultimately own or control the entity
information about any person on whose behalf the entity is acting
AUSTRAC’s beneficial ownership guidance requires identification and verification of beneficial owners and explains that ownership or control may be direct or indirect; it also requires records showing how beneficial ownership was identified and verified.
Source of funds and source of wealth
For some matters, we may ask you to explain where the funds for a transaction came from, or how relevant wealth was accumulated.
For example, we may ask for documents or information showing that funds came from salary, sale proceeds, inheritance, savings, business income, financing, or another legitimate source.
These enquiries are more likely where the matter involves a transaction with no obvious economic or legal purpose, unusually large or complex dealings, unusual patterns of activity, or other risk indicators. AUSTRAC’s current reforms guidance expressly contemplates collecting and, in some cases, verifying source of funds and source of wealth information in such circumstances.
Politically exposed persons and sanctions screening
In appropriate matters, Balwyn Legal may also conduct checks to determine whether a client, beneficial owner, or relevant associated person is:
a politically exposed person
subject to Australian targeted financial sanctions
otherwise connected with a higher-risk jurisdiction, structure, or transaction
AUSTRAC’s guidance requires reasonable steps to identify PEPs and targeted financial sanctions exposure before starting a designated service, and prohibits dealing with assets owned or controlled by sanctioned persons without lawful authority.
What happens if information is not provided
If we are unable to obtain information reasonably required for identification, verification, beneficial ownership, source-of-funds review, or related compliance checks, we may be unable to commence work, continue acting, release documents, or complete the relevant transaction.
AUSTRAC’s guidance says reporting entities must not provide a designated service unless applicable customer identification procedures have been carried out.
Confidentiality, privacy and privilege
Any information you provide for verification or compliance purposes will be handled in accordance with our professional obligations and privacy requirements.
Nothing in this process is intended to require disclosure of information protected by legal professional privilege. AUSTRAC’s current reforms guidance states that the AML/CTF Act does not take away a person’s right to refuse to give information protected by legal professional privilege.
Need help with verification?
If you are unsure what documents are required for your matter, please contact Balwyn Legal before uploading or sending material.
We will let you know what is required for your particular matter and, where appropriate, provide a secure method for supplying identification and supporting documents.