AML Software for Accountants Australia

Why Do Accountants Need AML Software?

From July 1, 2026, accountants become "reporting entities" under Australia's AML/CTF Act (Tranche 2). This means:

✅ Customer Due Diligence (CDD) for designated services
✅ AML/CTF Program approved by partners/directors
✅ Suspicious transaction reporting to AUSTRAC
✅ Record-keeping for 7 years
✅ Staff training on AML obligations
✅ AUSTRAC enrolment before July 1, 2026

Penalties: Up to $31.25 million for corporate entities, plus criminal prosecution for individuals (2 years jail). Non-compliance is not an option.

When Do Accountants Need AML Checks?

You must verify client identity when providing:

✅

Trust Formation Services
Setting up discretionary trusts, unit trusts, hybrid trusts

✅

Company Formation
Incorporating companies, appointing directors, share issuance

✅

SMSF Setup & Administration
Establishing SMSFs, trustee changes, member additions

✅

Acting as Nominee/Trustee
Holding assets, signing documents on behalf of clients

Note: Standard tax returns, BAS, bookkeeping don't trigger AML obligations. Only "designated services" listed above.

What AML Software Features Do Accountants Need?

1. Client Verification (KYC)

Verify individual and entity clients (companies, trusts, SMSFs) + beneficial owners. Must include government ID verification + AML screening.

Try free KYC check →

2. Entity Verification

Extract beneficial owners from ASIC company extracts, trust deeds, SMSF deeds. Verify ownership structures, identify UBOs (25%+ shareholders/beneficiaries).

Learn about entity verification →

3. AML/CTF Program Template

Board-ready AML Program customised for accounting firms. Covers trust/company formation, SMSF services, risk assessment, suspicious transactions.

Download program template →

4. Risk Assessment Generator

AI-powered ML/TF risk assessment for your practice. Required by AUSTRAC. 5-minute quiz → 20-page compliant report.

Generate risk assessment →

5. AUSTRAC Reporting Tools

File SMRs (Suspicious Matter Reports) and IFTIs (International Funds Transfer Instructions) directly to AUSTRAC. Pre-filled forms, guided wizards.

See reporting tools →

6. Compliance Dashboard

Track all verified clients, pending verifications, expiring reviews (12/24/36 months based on risk). Audit-ready compliance log.

View dashboard features →

FreeAML vs Paid AML Software for Accountants

Feature	FreeAML	Typical Software
Monthly subscription	$0	$100-500/mo
Setup fee	$0	$500-2,000
Per-check cost (KYC)	$15 (free for first 50/mo)	$2-8 each
Entity verification (KYB)	$35 (includes UBO)	$20-50 each
AML Program template	✅ Free	$500-3,000
Training courses	✅ Free	$50-200/person

For a 5-person accounting firm doing 20 entity setups/month:
FreeAML: $700/mo | Typical software: $1,200-2,500/mo

🚩 Red Flags for Accountants

You must report suspicious transactions to AUSTRAC. Watch for:

✓ Client wants to set up trust/company with no clear business purpose

✓ Complex ownership structure designed to obscure beneficial owners

✓ Client insists on nominee directors/shareholders (hiding real owners)

✓ Client provides false/misleading information about business activities

✓ SMSF setup with unusual asset classes (e.g., art, crypto, overseas property)

✓ Client refuses to provide source of funds for large trust/SMSF contributions

✓ Frequent changes to trust beneficiaries or company directors

✓ Client requests backdating of documents or false records

If you see these, file a Suspicious Matter Report (SMR) with AUSTRAC within 24 hours. Use our free SMR tool.

Common Questions from Accountants

Do I need AML software for all my clients?

No. Only clients receiving "designated services" — trust/company formation, SMSF setup, acting as nominee/trustee. Standard tax/BAS/bookkeeping don't trigger AML obligations.

What if I outsource trust/company setup to a lawyer?

If you're facilitating or coordinating the service, you still need to verify the client. The lawyer does their own CDD; you do yours.

Do I need to verify existing clients?

Yes. By July 1, 2026, you must verify all clients receiving designated services — even long-standing clients. Use the transition period to catch up.

Can I integrate FreeAML with my practice management software?

Yes. We offer API integration and Zapier webhooks for Xero Practice Manager, MYOB AE/AO, Ignition, Karbon. See API pricing.

How long is FreeAML free?

Forever. First 50 checks/month are free permanently. After that, $15/check (individual) or $35/check (entity). No subscription, no contract.