Fiducie, treuhand and fideicomisio are some words that property lawyers will soon need to learn to pronounce, spell, understand and apply.
These three words were introduced at Friday’s Queensland Law Society Property Law Conference Anti-Money Laundering – Know where you client’s money is coming from session in Brisbane.
MinterEllison Partner (Financial Services and Funds) Ian Lockhart and QLS CEO Matt Dunn presented the timely and updated session after the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 was introduced in Federal Parliament on 11 September.
“This will have significant consequences for property law practitioners,” Matt said.
The three unfamiliar words are part of the definition of “legal arrangement” when referring to Professional Services and now are Ian’s “favourite phrase in the whole of the Act”.
“I can’t even say it,” Ian joked. “We are all going to have become experts in concepts of law that are completely foreign to us.
“We are all going to have to know because we have to know what a legal arrangement is.”
The session focused on three key elements of the bill – the extended coverage to include new designated services in the real estate and professional services space; a simpler and clearer compliance scheme; and implementing new business technologies and AML methods.
Rukshana Sashankan, Ian Lockhart and Matt Dunn
discuss compliance issues. Photo: Natalie Gauld
Both speakers stressed that lawyer education is critical in understanding and complying with the new requirements on 31 March 2026 when the schedule extending to real estate professionals and professional advisors starts. There will be a delayed application of parts of the Act until 1 July 2026.
“We are not looking at something to hit you next week which is a good thing,” Matt said.
“Having said all that, our understanding is the government is absolutely intent on pushing the legislation through by the end of this calendar year … this is coming on like an absolute freight train.”
Fortunately, Queensland law firms can learn from the New Zealand experience and Ian said he had discussions with colleagues in larger firms there.
“The day is coming,” he said. “The days of arguing about it are pretty much gone so concentrate on getting ready for compliance. It will take more effort and time and cost than you think. Some people I spoke to said there was a factor of three times what they had originally thought. So this is going to have a significant impact on all of us.”
Ian shared tips from New Zealand. Event Photos
Ian shared some “tips from across the ditch” such as encouraging dialogue with like firms; exploring outsourcing early on and being prepared to discuss with clients as it is new for them too.
He said it was critical that organisations and law staff were aware of the changes.
“Again lawyers like to argue. They will probably try to argue the toss – ‘I shouldn’t have to do this’. Those days are gone. You have to set clear expectations and rules, and just impose it in some ways.”
Matt said there was guidance for lawyers and firm on the QLS website, from the QLS Ethics Centre and Law Council of Australia.
“Start to think about building a budget and planning some resources to tackle this,” Matt advised, “rather than do it on the side of your desk at the very last minute.”
And Ian’s final word of warning was “you don’t want to become the lawyer who’s known for lax compliance”.
Three key elements of the amendment bill were
discussed. Photo: Natalie Gauld
“You become known and you attract the wrong kind of client, and they told me a very sad tale about a very well-meaning lawyer in New Zealand who is now in jail.”
The AML session was supported by principal partner PEXA.
Presentations from the conference will become available on the QLS Shop.
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