Complying with AML and CTF requirements

About the Anti-Money Laundering (AML) and Counter Terrorism Financing (CTF) Act 2006 changes and Nexia’s obligations

This legislation is designed to reduce the impact of money laundering and terrorism financing and protect the integrity of Australia’s financial system.

These changes align Nexia with sector-wide regulatory requirements and are being implemented across the accounting profession.

All accounting firms who provide designated services must comply with the Act. Whilst all Nexia services are not designated services, many are and the range of services included in the Act is very broad. Some of the common designated services we provide include:

• Registered company office or principal place of business-related services;
• Acting as a director, company secretary, trustee, or similar role;
• Advisory services relating to changes in ownership of entities or assets (e.g. due diligence, valuations);
• Processing banking transactions on a client’s behalf; or
• Services in relation to the creation or transfer of shelf companies.

Where we provide a designated service to a client, we are required to undertake initial and ongoing customer due diligence. We have engaged an external provider to perform the relevant customer due diligence on our behalf. From time to time, the external provider or Nexia will also undertake monitoring activities. If a suspicious matter is identified, we are required to report that matter to AUSTRAC. In accordance with the Act, we are prohibited from advising clients of this report.

What does this mean for our clients?

• We may request additional personal information about our clients, their business, or income streams so that we can complete the required customer due diligence.
• These requests may be made directly by Nexia or by our external provider.
• The third-party costs incurred by Nexia in performing customer due diligence may be on-charged to the client. If you have any questions about this, please contact your Nexia engagement partner.
• If we cannot obtain the required information to undertake the customer due diligence required by the Act, we will not be able to provide the designated service.
• Our standard terms and conditions will be updated from 1 July 2026 to reflect our status as an AML/CTF registered entity.

Questions

If you have any questions or would like to discuss the Act and Nexia’s AML/CTF program further, please contact your Nexia engagement partner.