The announcement in last week’s federal budget of more than $160 million to implement anti-money laundering and counter-terrorism financing (AML/CTF) reforms sends a clear message that significant changes in this space are approaching.

The funding follows hot on the heels of Attorney General Mark Dreyfus commencing a second round of consultation, including publishing a series of papers dealing with so called ‘tranche two’ entities, which includes legal practitioners.

AML/CTF is one of the most frequent topics raised by members I’ve met since my term as President began. I have heard particular concern from those in small practices and in the regions about the potential costs and regulatory burden of complying with new reporting obligations.

The reform process arises out of Australia’s non-compliance with some AML/CTF recommendations by the global body tackling such illicit financing, the Financial Action Task Force (FATF). Without adequate compliance, Australia risks being “grey listed” by the FATF, a dubious honour shared by only 21 jurisdictions, out of more than 200.

The Law Society is actively participating in the consultation process, as well as preparing to assist law practices to navigate the new AML/CTF regime, in whatever final form it takes, prior to its commencement.

We will continue to work with the Law Council of Australia (LCA) on this issue to ensure a coordinated national process. We have also established our own AML/CTF Reference Group to focus on assistance for the NSW solicitor profession.

The Reference Group consists of a group of experienced practitioners with expertise in AML/CTF, from varying fields and practice sizes. They are developing an educational campaign to help practitioners strengthen their practices to minimise the risk of being unwittingly involved in money laundering or terrorism financing. This material will be founded on the profession’s existing obligations under the Legal Profession Uniform Law.

As the preparation for the implementation of Tranche 2 gathers pace, the Law Society will continue advocating for an effective regime that imposes on practices the least cost and regulatory burden possible. We’ll do all we can to prepare practitioners for these impending reforms.

Have a laugh, support Young Lawyers

The fear of public speaking often excels the fear of death. So imagine the courage needed not only to speak in front of a sizable crowd, but also to carry the immense burden of making them laugh.

Yet, five brave members of NSW Young Lawyers have fought (well, auditioned) for the right to showcase their comedic talents in next week’s Golden Gavel Competition. Adding to the drama and anxiety, this select group is given their topic only 24 hours before the event and only a few minutes to think on their feet. The winner will have the chance to compete in the National Golden Gavel Competition.

Book a seat or a table here and enjoy a belly laugh and a great breakfast at the Fullerton.

Brett McGrath, President, Law Society of NSW