Australia has strengthened its anti-money laundering and counter-terrorism financing (AML/CTF) regime with the passage of the AML/CTF Amendment Bill 2024 through Parliament. This legislation is intended to modernise Australia’s fight against financial crimes.
Key features of the legislation
- Expansion of AML/CTF coverage: High-risk services provided by, amongst others, lawyers, accountants, trust and company service providers and real estate professionals, (referred to as ‘tranche 2’ entities) are now regulated under the AML/CTF regime.
- Simplification and clarity: The bill streamlines compliance requirements to reduce regulatory burdens while ensuring obligations are clearer for businesses.
- Modernization: Updates to the regime reflect evolving business structures, technologies, and illicit financing methods, aligning with the increasingly digital and instantaneous nature of global financial systems.
Impact and objectives
The bill is designed to address gaps in the current regime, improve financial intelligence collection, and enhance Australia’s international compliance standards.
Collaboration with industry
AUSTRAC has committed to working closely with the newly regulated sectors to ensure a seamless transition. This includes:
- Developing targeted guidance and educational resources to help industries understand and meet their obligations.
- Minimizing compliance costs while preparing industry bodies for the legislation’s commencement.
This collaborative approach aims to ensure the regime’s effectiveness in mitigating risks and protecting Australians from financial crimes while strengthening international confidence in Australia’s AML/CTF framework.