Key Takeaways
- Significant changes are coming for Australia’s anti-money laundering (AML) and counter-terrorism financing (CTF) legislation
- AML/CTF reporting entities now include Lawyers, Conveyancers and Real Estate Agents
- Reformed AML/CTF laws come into effect 1 July 2026
A new era for Australia’s AML/CTF Laws
Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime is undergoing its most significant transformation since the original legislation came into force in 2006.
With the passing of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 and Tranche 2 rules being finalised, reporting entities both existing and new must prepare for substantial operational changes.
If you’re now a reporting entity, it’s important to start preparing early.
Here’s what you need to know
The following material changes will reshape governance, compliance, and day-to-day operations:
1. Oversight and Governance:
Boards and senior management will be explicitly required to take reasonable steps to ensure their organisation is effectively identifying, assessing, managing and mitigating risks related to money laundering, terrorism financing, and proliferation financing.
2. Risk Assessment Obligations
New reporting entities will be required to conduct an AML/CTF risks assessment, tailored to the entity’s services and customer profiles. These are not box ticking exercises.
3. Customer Due Diligence (CDD)
Before providing any designated services, initial CDD checks need to be carried out – both at onboarding and throughout the customer relationship. This includes initial verification before services are provided, as well as ongoing monitoring for suspicious activity or changes in risk profile.
4. Information Sharing and Tipping Off
To improve coordination against financial crime, the tipping off offence has been altered to allow greater information sharing in property related transactions. In certain circumstances, disclosures that would previously have breached the law may now be allowed unless they risk prejudicing an active law enforcement investigation.
AML/CTF Rules are here. PEXA, helping you prepare.
AUSTRAC has released the updated AML/CTF Rules, providing detailed guidance on how to implement the new legal obligations. PEXA is hosting AML/CTF webinars with industry experts to dive deeper into key topics, AML/CTF rules to help you prepare.
With Australia’s new anti-money laundering laws taking effect in 2026, businesses must begin preparing now. The scope and depth of these reforms mean compliance functions will need updating, governance frameworks will need to be revisited, and internal education will need to be ramped up to meet the new standards.
Together with industry, PEXA is working on a PEXA AML solution that will enable a simple due diligence and standard customer due diligence for the compliance date of 1 July 2026.
