Legal professionals must move quickly on hiring for AML compliance ahead of the July 2026 deadline, one expert has said.
A specialist recruiter has warned law firms to act now on hiring staff to meet new Anti-Money Laundering/Counter Terrorist Financing (AML/CTF) requirements amid a shortage of skilled professionals.
“It’s a new skill set for most Tranche 2 entities,” said Sophie Watson, managing consultant for risk, compliance, and financial crime at TOM People.
“Global law firms are likely to already have some form of an AML program in place, particularly those operating in jurisdictions like the UK, where such measures are mandated.”
She said the most significant changes will be required from large national and smaller domestic law firms, as they will need to make the greatest adjustments to their current workflows to meet evolving AML requirements.
“Firms must clearly define what skills they need from this person and then work through how to attract the right candidate,” she said.
With the new Tranche 2 compliance deadline fast approaching, Watson, who has recruited in compliance and financial crime for a decade, said demand has surged. “If a compliance team had 15 members before, they might have 60 now,” she said.
“There’s already a shortage of quality candidates, especially those who can think strategically, liaise with regulators, and build a tailored, fit-for-purpose program rather than just copy and paste.”
While she notes law firms are generally ahead of other Tranche 2 entities, Watson said that moving early is still essential, especially as banks and other major employers continue to recruit.
“There’s a lot of work to do, and it can either be done well or rushed. The later firms leave it, the less attractive these roles become to candidates,” she said.
“If you’re hiring in January and expecting someone to stand up a compliant program by July, that’s a lot of pressure. If they aren’t supported with the right technology and business engagement, they will be set up to fail.”
“The longer you wait, the fewer top candidates will be available.”
Watson will speak at AML Edge 2025 in Sydney on Tuesday, 21 October, addressing how firms can build and train effective AML/CTF teams.
Do I need to hire?
Whether a firm needs to hire depends on its size and complexity.
“Smaller firms may be able to fold the role into someone already doing compliance work,” Watson said.
It also depends on the organisation’s risk profile. Firms handling larger transactions or higher-risk clients should consider a dedicated hire, ideally someone senior enough to challenge decisions and experienced enough to embed best practice.
“Firms should look for someone who understands the business and can offer an understanding as to how this can be a competitive advantage,” she said.
Where to find strong candidates
Firms hiring externally are looking to overseas markets where AML is more mature. But attracting those candidates isn’t easy.
“Australian salaries are lower than in Europe, the US or Asia; lifestyle becomes a key selling point,” said Watson.
She also recommends considering New Zealand, where similar AML legislation is already in place.
“There’s strong interest from candidates in that market. There are different nuances and a different pace in Australia, but it’s still a good option,” she said.
Suggested salary depends on the size and complexity of a firm, but between $170,000 and $250,000 plus super would be the right starting point.
For law firms specifically, Watson said some of the best candidates are former lawyers who’ve moved into AML/CTF and are keen to return to a legal setting.
“They understand law firms, their workflows, the demands of their clients and so on,” she said.
Her final advice is to look at the bigger picture.
“Have you thought about how to retain that person? How to shift mindsets across the business? Whether you need change or project managers alongside them? It’s not just about hiring one person and hoping they can do it all,” Watson said.
Back by popular demand, AML Edge 2025, Second Edition will take place on 21 October at Watersedge, Sydney. Secure your earlybird tickets before 15 August and save $400.
