AML Compliance Cost for Australian Law Firms (2026)
Legal services were the first Tranche 2 cohort with a 29 July 2026 enrolment deadline. Use the calculator below to estimate your costs, then check the triggers to confirm you're captured.
Upfront breakdown
Free — but mandatory (deadline for new entities was 29 July 2026)Free
$500–$2,000
$100–$800
$0–$500
Annual breakdown
~$59–300/month per vendor claims$708–$3,600
$100–$600
Periodic — amortised annually$800–$3,000
AUSTRAC reporting, record-keeping, SMR/ITR lodgement$500–$2,000
AML SaaS (KYC checks, program templates, reporting) — vendors advertise from ~$59/month.
What triggers AML obligations
- Handling client money or operating a trust account
- Conveyancing and property transactions
- Drafting financial agreements
- Trust account transactions on behalf of clients
Sector specifics
- Law societies have issued practice guidance — check your state law society AML resources before engaging consultants.
- Trust account practices face the highest CDD workload: every matter with client money needs identification and ongoing monitoring.
- Small firms (under $200k turnover) fall in the government low-cost band (~$4,040 upfront / ~$6,020/year).
Full obligations and designated services: Tranche 2 guide.
What law firms actually pay (2026)
A sole practitioner who never touches client money and provides no listed designated service may sit outside Tranche 2 entirely — always map your services before buying compliance. A sole practice that does conveyancing, however, is squarely captured: expect roughly $2,000-$4,000 upfront and $3,000-$7,000 a year with template-based compliance plus pay-per-check KYC.
Trust account practices pay the most. Every matter touching client money needs customer identification and ongoing monitoring, and the risk assessment must document exactly how your trust work could be exploited. Mid-size firms (11-50 staff) with high conveyancing volume typically land at $12,000-$25,000 in year one including a consultant-drafted program and the first independent review.
The single biggest cost lever for firms is the practice management system. If your PMS already captures identity documents against matters, compliance is mostly process, training and reporting. If it does not, expect a data-mapping project before your AML program can even describe your client base.
Why legal was first in the queue
Lawyers were the first Tranche 2 cohort with the 29 July 2026 enrolment deadline, ahead of the broader September transitional dates for other professions. AUSTRAC’s reasoning is consistent: legal trust accounts and conveyancing have been cited in every major AUSTRAC typology report as channels for laundering. Expect enforcement attention to be firmest exactly where client money flows.
State law societies have published practice guidance — check yours before engaging consultants, because several recommended Part A program templates are free to members.
FAQ
Does every law firm need an AML program under Tranche 2?
No — the trigger is providing a designated service, not being a law firm. Litigation-only practices without client money may fall outside the listed services. Practices handling trust account transactions, conveyancing or drafting financial agreements are captured. Map your services against AUSTRAC’s designated services list before spending anything.
What is the cheapest compliant path for a small firm?
Enrolment is free; a template-based Part A and Part B program costs $2,000-$4,000 in your time or with light guidance; KYC runs $2-$8 per check; staff training via law society modules is often free to members. Most sole and small practices reach defensible compliance for under $7,000 in year one.
Do we need an independent review of the AML program?
Yes, periodic independent reviews are part of the obligations, and they are the line item firms most often forget to budget. Expect $1,500-$4,000 depending on firm size and trust volume — a fraction of the penalties for an undocumented program.