---
title: "Client letter: why we need to verify your identity (AML/CTF obligations)"
url: "https://ailawframework.com/precedents/aml-ctf-the-practice-as-a-reporting-entity/client-aml-identification-letter"
type: "precedent"
site: "AI Law Framework"
id: "a52ob-client-aml-identification-letter"
area_id: "A52OB"
kind: "letter"
ai_level: "green"
version: 1
law_stated_as_at: "2026-10-17"
---

# 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…

Canonical page: https://ailawframework.com/precedents/aml-ctf-the-practice-as-a-reporting-entity/client-aml-identification-letter  
Law stated as at: 2026-10-17

Site index for agents: https://ailawframework.com/llms.txt

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.

## Key facts

- Kind: Letter. A letter or email you adapt and send.
- Practice area: [AML/CTF — the practice as a reporting entity](https://ailawframework.com/precedents/aml-ctf-the-practice-as-a-reporting-entity.md)
- Jurisdictions: Australia
- AI level: Green. AI can do most of the drafting. A lawyer still reviews the result.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the 5 authorities it cites, for Australia.

## 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.

## Authorities

- [Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) s 28 (initial customer due diligence before a designated service starts)](https://www.legislation.gov.au/C2006A00169/latest/text)
- [Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) ss 30 and 35A (ongoing CDD; verification through credit reporting bodies with consent)](https://www.legislation.gov.au/C2006A00169/latest/text)
- [Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) s 111 (retention of CDD records)](https://www.legislation.gov.au/C2006A00169/latest/text)
- [Privacy Act 1988 (Cth) Sch 1 APP 5.2(c) (notice that collection is required by an Australian law, naming the law)](https://www.legislation.gov.au/C2004A03712/latest/text)
- [AUSTRAC, Overview of customer due diligence](https://www.austrac.gov.au/industry-and-business/obligations-and-guidance/your-amlctf-program/customer-due-diligence/overview-customer-due-diligence)

## Official form

[Official form](https://www.austrac.gov.au/industry-and-business/obligations-and-guidance/your-amlctf-program/customer-due-diligence/overview-customer-due-diligence)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/aml-ctf-the-practice-as-a-reporting-entity/client-aml-identification-letter and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*