Letter · AML/CTF — the practice as a reporting entity
Client letter: why we need to verify your identity (AML/CTF obligations)
Plain-English letter explaining to new clients that Australian AML/CTF law now requires the practice to identify and verify them (and their owners or controllers) before certain work starts, what is needed, how it is checked, and how their information is handled.
- Kind
- Letter. A letter or email you adapt and send.
- Where it applies
- Australia
- AI use
- Green AI can do most of the drafting. A lawyer still reviews the result.
- Law stated as at
- 17 October 2026
- Status
- Maintained. Checked against the cited sources on 17 October 2026.
- Version
- 1
- Source
- Written for this library
When to use it
Send at file opening for matters that are designated services (for example conveyancing, company and trust set-ups, business sales). It is a general notice: do not use it, or adapt it, to respond to a suspicion about a particular client.
How AI may be used
Bounded assistance. AI can tailor the document list to the client type and translate the letter for checking, but the lawyer confirms the requirements match the practice's AML/CTF program.
AI may
- Select the document list for the client type (individual, company, trust) from the practice's program.
- Produce plain-language and translated versions for review by a qualified translator.
- Merge client details into the letter.
AI must not
- Must not add or remove verification requirements that differ from the program.
- Must not be used to write to a client about a suspicion, a refusal or enhanced checks prompted by a concern.
- Must not describe AI or electronic checks the practice does not actually use.
The lawyer checks
- The requirements match the practice's program forms for this client type.
- The electronic verification consent paragraph is included where a credit reporting body check is used.
- The privacy paragraph matches the practice's collection notice and privacy policy.
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Official form
Open the official form. Always use the current version from the issuer.
Read the full text
The full text is for signed-in accounts. It is free. When you sign in you can:
- read the whole precedent, with its drafting notes beside it;
- copy it, or download it as a Word file or Markdown;
- add it to your firm’s knowledge base, so colleagues can find it;
- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
More in AML/CTF — the practice as a reporting entity
- AML/CTF program for small legal practices: AUSTRAC legal profession starter kit adoption guide
- Designated services capture map and enrolment decision record (AML/CTF Act s 6(5B), table 6)
- Initial customer due diligence checklist for law practice designated services
- AI and automated tools in the AML/CTF program: control standard
- Suspicious matter escalation, reporting and legal professional privilege procedure
All precedents for AML/CTF — the practice as a reporting entity · Tasks and AI use in this area