Episode Summary: The Financial Action Task Force, or FATF, may be the most important organisation Australian lawyers have never heard of. Its global standards underpin Australia’s AML/CTF Tranche 2 reforms, shaping how legal practices onboard clients, assess risk and help prevent financial crime. This episode explains why the regime exists, how Australia fell behind its global counterparts and the practical steps lawyers need to be taking as the reforms come into effect from 1 July 2026. Guest: Tim Goodrick, Partner, Financial Crime, KPMG AustraliaFormer Acting Director of the FATF Training and Research Institute and former financial crime policy lead at the Attorney-General’s DepartmentSpecialist in AML/CTF system design, financial crime policy and global AML standardswww.kpmg.com/au/en/contacts/g/timothy-goodrick.htmlwww.au.linkedin.com/in/timothygoodrick Host: Artemis Evangelidis, Law Institute of Victoriapodcasts@liv.asn.au | www.linkedin.com/company/law-institute-of-victoria Episode Overview: The Financial Action Task Force, or FATF, is the global standard-setter behind anti-money laundering and counter-terrorism financing laws, but its influence is often invisible to legal practitioners. This episode explains how FATF reshaped the global financial crime system, why Australia’s Tranche 2 reforms now extend AML/CTF obligations to designated services provided by lawyers, and what this means for everyday practice. Tim Goodrick outlines the practical impact of risk-based AML/CTF compliance on customer due diligence, beneficial ownership checks, suspicious matter reporting and legal professional privilege. The discussion is designed for practitioners who need to understand why the regime exists, whether they provide designated services, how to identify risk in routine work and practical steps to implementation. Topics & Timestamps: [00:04] Welcome to Cross-Examined[00:12] Episode introduction and AML/CTF Tranche 2 overview[00:54] Why lawyers need to understand FATF[01:14] FATF – the most important body you’ve never heard of[03:24] How Australia moved from model jurisdiction to compliance gaps[07:05] Real-world harms the AML/CTF regime is designed to prevent[09:06] What Tranche 2 means in practice for lawyers[12:24] Professional resistance and lessons from New Zealand[15:22] Legal professional privilege and confidential instructions[18:10] What the regime means for sole practitioners and smaller firms[20:35] First steps for lawyers who have not started yet[22:50] Closing remarks[22:57] Resources, show notes and AML/CTF mini-series reminder Key Takeaways: FATF is not a domestic regulator. It is an inter-governmental standard-setter that assesses how countries combat money laundering, terrorism financing and proliferation financingAustralia helped build the global AML system but has fallen behind FATF standards in areas involving lawyers, accountants, real estate agents and other professional servicesAML/CTF compliance is not only about paperwork. The regime is designed to protect communities by helping law enforcement follow the money behind serious and organised crimeLawyers may be exposed to money laundering risk through ordinary work involving property, trusts, companies, client money and beneficial ownership structuresTranche 2 introduces practical obligations including AUSTRAC enrolment, risk assessments, AML programs, customer due diligence, ongoing monitoring and suspicious matter reportingLegal professional privilege remains important, but practitioners need to understand the distinction between privileged legal advice and transactional servicesThe first practical step is to identify whether the services provided fall under designated services, then map the regulated parts of the business and build the AML/CTF program into daily operations Resources & Links: LIV AML/CTF Hub – Guidance for legal practitioners on designated services, enrolment, AML/CTF programs and Tranche 2 obligations | www.liv.asn.au/web/content/resource_knowledge_centre/anti-money-laundering-and-counter-terrorism-financing-for-solicitors.aspxFollow the Money: Financial Crime, AML and Risk Series – LIV education series supporting legal practitioners to understand AML/CTF changes and compliance obligations | www.liv.asn.au/amlcpdEssential AML/CTF resources – Law Institute Journal resource article for practitioners preparing for the new AML/CTF obligations | www.liv.asn.au/web/law_institute_journal_and_news/web/lij/year/2026/06june/aml-ctf-resources.aspxFATF Australia Follow-Up Report 2024 – Australia’s current FATF technical compliance ratings and remaining deficiencies | www.fatf-gafi.org/en/publications/Mutualevaluations/Australia-fur-2024.htmlAUSTRAC AML/CTF Reform webpage – AUSTRAC information on reform, Tranche 2 entities, obligations and preparation resources | www.austrac.gov.au/amlctf-reform-webpage-home-everything-reformAUSTRAC AML/CTF Rules release and upcoming guidance – AUSTRAC update on 2025 Rules, commencement dates and guidance for newly regulated entities | www.austrac.gov.au/amlctf-rules-release-and-upcoming-guidanceAsia/Pacific Group on Money Laundering – Australia country page and mutual evaluation materials | apgml.org/about-us/members/members/australiaAnti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) – Principal legislation for Australia’s AML/CTF regime | www.legislation.gov.au/C2006A00169/latest/text About This Podcast: Cross-Examined is a new podcast from the Law Institute of Victoria. Tune in to hear experts discuss hot topics in the law and the changes shaping the legal profession. Regular episodes will cover everything from AI and cyber threats to ethical dilemmas, workplace taboos and practice management insights. This podcast is recorded on the traditional lands of the Wurundjeri people of the Kulin Nation. The Law Institute of Victoria acknowledges the Traditional Custodians of Country across Australia. We pay our respects to Elders past and present. Disclaimer: This podcast is for informational purposes only and is not intended to replace professional legal advice. The views expressed in this podcast do not necessarily reflect the views of the Law Institute of Victoria (LIV). The LIV is not responsible for any losses, damages or liabilities that may arise from the use of this podcast. Listeners should seek independent legal advice for their matters. Production Information: Produced by: The Law Institute of VictoriaProducer and audio editor: Garreth HanleyMusic: Garreth HanleyCopy and show notes: Louise Surette Connect With Us: Email: podcasts@liv.asn.auWebsite: www.liv.asn.auLinkedIn: www.linkedin.com/company/law-institute-of-victoriaApple Podcasts: podcasts.apple.com/au/podcast/cross-examined/id1858765728Spotify: open.spotify.com/show/0zvyk5xia4wYv9YWcXphgV