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Law firm AML/CTF program review checklist

Law firms from 1 July 2026 must have an AML/CTF program under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. This checklist is for firms reviewing their program annually or on material change.

In short

This is a 12-step checklist for reviewing a law firm AML/CTF program. It covers risk assessment, Part A, Part B, governance, and audit.

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12-step checklist

The checklist

1

Review ML/TF risk assessment

Review the firm's ML/TF risk assessment covering clients, services, geography, and channels.

Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No 1)
2

Review Part A program

Review Part A covering systems, controls, and governance.

3

Review Part B CDD procedures

Review Part B covering customer due diligence procedures.

4

Review board oversight

Confirm board/partnership oversight of the program.

5

Confirm AML compliance officer

Confirm an appointed AML compliance officer with appropriate seniority.

6

Review staff training

Check training records for all relevant staff.

7

Review employee due diligence

Review employee due diligence and vetting processes.

8

Review suspicious matter reporting

Review SMR process and historical reports to AUSTRAC.

Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) s 41
9

Review record keeping

Check record keeping procedures for 7 year retention.

10

Review independent review

Confirm an independent review has been conducted at the required interval.

11

Identify program gaps

Identify gaps and recommend remediation actions.

12

Update program

Update and approve the revised program with partnership or board sign-off.

When to use

When this checklist applies

Use annually or when the firm's services, clients, or risk profile materially change.

Common pitfalls

  • Risk assessment not refreshed when services change
  • Board oversight not documented
  • Training records incomplete
  • Independent review overdue
  • SMR process not tested
Use with Quillio

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Quillio can review a law firm AML program and produce a gap analysis. See /practice-areas/firm-management or start a free trial.

General guidance for AML program reviews. Apply current AML/CTF Rules and AUSTRAC guidance.

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