What Do The New Anti-Money Laundering (AML) Changes Mean For My Business?

Summary

• Australia’s AML/CTF framework has been significantly reformed, expanding obligations to new sectors including real estate professionals, lawyers, accountants, and precious metal dealers.
• Newly regulated businesses must comply by 1 July 2026 and enrol with AUSTRAC by 29 July 2026.
• The reforms shift from a tick-box approach to a risk-based model, requiring tailored risk assessments and updated customer due diligence practices.
• This article is a plain-English guide to Australia’s reformed AML/CTF laws, written for business owners operating in newly or existing regulated sectors.
• It has been prepared by LegalVision, a commercial law firm that specialises in advising clients on financial crime compliance and regulatory obligations.

Tips for Businesses

Check whether your business now falls under the expanded AML/CTF regime. If so, begin developing your risk assessment and AML/CTF programme early. Review your customer due diligence processes and ensure you enrol with AUSTRAC before the 29 July 2026 deadline. AUSTRAC’s published guidance is a practical starting point.

Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws set out the rules businesses must follow to detect and prevent financial crime. New legislation first introduced on 11 September 2024 proposed the most significant overhaul of this framework in years. In this article, we explore:

• what the existing laws around AML/CTF look like;
• why the need for reform in this space; and
• what this new legislation mean for your business?

What is the Current Legal Framework for Preventing Money Laundering and Terrorism Financing?

Under Australian law, a business that provides certain ‘designated services’ must meet several obligations, including:

• enrolling their business with the regulator, which is the Australian Transactions Reports and Analysis Centre (AUSTRAC);
• developing and maintaining an AML/CTF program tailored to their business;
• conducting customer due diligence (also known as ‘know your client’ checks) at the beginning of the customer relationship and on an ongoing basis;
• reporting certain transactions and suspicious activities; and
• making and keeping records.

Examples of ‘designated services’ under the existing legal framework include:

• banking services;
• lending services;
• dealing in Australian Carbon Credit Units; and
• digital currency exchange services.

This legal framework’s purpose is to deter, detect, and disrupt money laundering and terrorism financing in Australia.

Why the Need for Reform?

The previous framework had several gaps, particularly in high-risk sectors where AML/CTF obligations are missing. These gaps gave criminals the chance to take advantage of the system. For your business, addressing these weaknesses is essential to reducing risks. The new legislation aims to close those gaps and modernise the framework to make it more risk-based rather than the current ‘check-box’ approach. 

What are the Changes and What Does This Mean for Your Business?

The new legislation has three main objectives:

1. Expand the AML/CTF regime to additional high-risk services, including:

• real estate professionals;
• precious stone and metal dealers;
• lawyers;
• conveyancers;
• accountants; and
• trust and company service providers, among other professional service providers.

2. Modernise the regulatory approach to digital currency, virtual assets (including stablecoins and NFTs) and payment technology.

3. Simplify the AML/CTF regime focusing on increasing flexibility and reducing regulatory impacts.

In addition to the changes highlighted above, the new legislation made changes, such as:

• making AML/CTF programs focus on real risk assessment and practical risk controls, instead of simply having a program on paper;
• updating customer due diligence rules so businesses know when to use basic checks and when stronger checks are needed;
• loosening the “tipping off” offence so related companies can share information more easily where they must comply with AML/CTF laws;
• repealing the Financial Transactions Reports Act 1988, removing some older rules for cash dealers, although many lawyers may still be covered under the new AML/CTF regime; and
• giving AUSTRAC stronger powers to request information or documents for investigations, enforcement decisions, and court proceedings.

When Do the Changes Take Effect?

Businesses newly captured by the changes have until 1 July 2026 to comply, and a hard deadline of 29 July 2026 to enrol with AUSTRAC. For businesses already subject to AML/CTF obligations, the reforms came into effect on 31 March 2026.

AUSTRAC have published a number of resources for newly-regulated businesses to help guide them through the compliance process and understand their AML/CTF obligations. 

Key Takeaways

The new legislation has reformed  Australia’s AML/CTF framework, expanding it to high-risk sectors and updating rules for digital currencies. It has introduced a risk-based approach and enhanced AUSTRAC’s powers. Newly-regulated businesses have until 1 July 2026 to become compliant, and until 29 July 2026 to enrol with AUSTRAC.

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