What does KYC stand for?

Know Your Customer — verifying who your client actually is before providing certain services, using government-issued ID.

Is a scanned copy of someone's licence enough for KYC?

Not on its own. The document needs to be verified as genuine — either checked in person or run through a digital verification tool against government records.

Do I need KYC for every client, even ones I've known for years?

Yes. The requirement applies to the relationship and the service provided, not how well you personally know the client.

What Is KYC? A Simple Explanation

KYC gets thrown around a lot in compliance conversations. Here's what it actually means, without the jargon.

KYC just means "Know Your Customer"

That's it. Before you do certain kinds of work for a client, you need to confirm they're really who they say they are.

What do I actually need to collect?

For an individual person, generally:

Full legal name
Date of birth
Residential address
A government-issued photo ID to verify all of the above — a driver's licence or passport

For a company or trust, it's a bit more: you also need to identify the directors, and anyone who ultimately owns or controls the entity (more on that in beneficial ownership).

Does a photocopy of their licence count?

Not on its own. You need to actually verify the document is genuine — either checking the original in person, or using a digital verification tool that checks it against government records. A scanned photo someone emails you, with no further check, isn't considered reliable on its own.

Do I need to do this for every single client?

Yes — anyone you provide a designated service to needs to go through this, regardless of how well you know them personally. It feels awkward asking a long-time client for ID, but it's not optional, and most clients understand once you explain it's a legal requirement, not a judgement about them.

What if something looks off?

That's when you move from basic KYC into deeper checks — verifying source of funds, asking more questions, maybe even declining to act for them. Most clients sail through with no issues at all.

The easy way to actually do this

Doing KYC manually — collecting documents, checking them, filing them somewhere safe for 7 years — gets old fast once you have more than a few clients. CompliDesk handles the whole thing: client uploads their ID, it's verified automatically, and it's securely stored and ready if AUSTRAC ever asks.

Ready to simplify your AML compliance?

CompliDesk guides lawyers, accountants, real estate agents, conveyancers, TCSPs, precious metals dealers and VASPs through every AUSTRAC obligation. Sign up free today.

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Frequently Asked Questions

What is the difference between Tranche 1 and Tranche 2 under Australia's AML/CTF Act?

Tranche 1 (passed in 2006) applied only to the financial services, gambling, and bullion sectors. Tranche 2 extends these anti-money laundering and counter-terrorism financing (AML/CTF) obligations to designated non-financial businesses and professions (DNFBPs), including lawyers, accountants, real estate agents, conveyancers, trust and company service providers, and precious metals/stones dealers.

Do all lawyers, accountants and real estate agents need to register with AUSTRAC?

No, only those who provide 'designated services' as defined in Schedule 1 of the AML/CTF Act. For example, a litigator who only represents clients in court is generally not captured, whereas a lawyer who assists with property transactions, company formations, or managing client trust accounts is. Similarly, accountants providing tax advice or basic bookkeeping are not captured unless they manage client funds, set up companies, or act as trustees.

What is the AUSTRAC enrolment deadline for Tranche 2 entities?

Under the transitional arrangements, Tranche 2 entities were required to enrol with AUSTRAC by 29 July 2026, following the official commencement of the reforms on 31 March 2026.