Do existing clients need to be re-verified?

Clients you were already in a business relationship with on 1 July 2026 are pre-commencement customers. You can keep acting for them without initial due diligence until a suspicious matter report obligation arises or a significant change in the relationship makes their risk medium or high; ongoing monitoring and periodic review of their details still apply. New matters for new clients get full due diligence.

Can I open the file while waiting for ID?

You can open it. Ordinarily you must not provide the designated service until initial due diligence is complete; the Rules allow a delay only in limited cases and set deadlines: generally 20 business days, and when you act for the buyer of real estate, 28 days after exchange of contracts or 3 days before settlement, whichever comes first.

Client due diligence for lawyers: what to do before the matter starts

1. Identify and verify

Full name, date of birth and address for an individual, verified against a driver licence, passport or similar; ASIC extract for a company; the deed for a trust. Record the document, who verified it and when.

2. Beneficial owners

For companies, trusts and partnerships, identify and verify the individuals who ultimately own or control the entity, typically 25% or more, and those who control it in practice.

3. Purpose and source of funds

One or two sentences on why the client needs the service and, where risk is higher, where the money comes from. This is what later transactions are compared against.

4. Rate the risk

Low, medium or high, from client type, jurisdiction, value, delivery channel and red flags: politically exposed persons, cash, third parties instructing, unclear source of funds. High-risk clients get enhanced due diligence and senior approval.

5. Record and schedule

Keep everything for 7 years and set the next review date by rating.

Questions people ask

Do existing clients need to be re-verified?: Clients you were already in a business relationship with on 1 July 2026 are pre-commencement customers. You can keep acting for them without initial due diligence until a suspicious matter report obligation arises or a significant change in the relationship makes their risk medium or high; ongoing monitoring and periodic review of their details still apply. New matters for new clients get full due diligence.
Can I open the file while waiting for ID?: You can open it. Ordinarily you must not provide the designated service until initial due diligence is complete; the Rules allow a delay only in limited cases and set deadlines: generally 20 business days, and when you act for the buyer of real estate, 28 days after exchange of contracts or 3 days before settlement, whichever comes first.

Sources

Official AUSTRAC guidance this page was checked against. The date is when we captured the page; AUSTRAC may have updated it since.

Overview of initial customer due diligence · AUSTRAC, captured 17 May 2026
Delayed initial customer due diligence · AUSTRAC, captured 16 Apr 2026
Enhanced customer due diligence · AUSTRAC, captured 12 Apr 2026
Transitioning existing customers · AUSTRAC, captured 12 Apr 2026
Record keeping overview · AUSTRAC, captured 12 Apr 2026

This guide is general information for solicitors, conveyancers, settlement agents, not legal advice. Check AUSTRAC's current guidance for your situation.