About AUSTRAC
The Australian Transactions Reports and Analysis Centre (AUSTRAC) is Australia’s anti-money laundering and counter-terrorism financing regulator and financial intelligence service. It ensures that businesses are compliant with their report and risk management obligations, and also analyses and provides law enforcement authorities (as well as national security partners) with data that assists them in their investigations and operations.
AML/CTF reforms and goals
To better combat organised crime and meet the international standards set by the Financial Action Task Force (FATF), the Australian Parliament amended the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) in 2024 to modernise the country’s AML/CTF regime and better regulate those industries which are at a higher risk of criminal exploitation.
In response to the AML/CTF Act being amended, AUSTRAC, following two rounds of public consultation, have provided updated information on its AML/CTF rules, including key milestones and guidance for both current and new reporting entities.
Primary changes
As stated by AUSTRAC, the changes “impact high-risk services and current reporting entities”.
Current reporting entities
Current reporting entities will undergo changes to their AML/CTF program requirements and due diligence obligations as well as their value transfer obligations and definition of bearer negotiable instruments, among other changes.
High risk services
Due to an increased risk of criminal exploitation, businesses that provide certain designated services (called tranche 2 entities) will now be regulated by AUSTRAC. This includes:
- Real estate professionals
- Dealers in precious stones, metals and products
- Lawyers
- Conveyancers
- Accountants
- Trust and company service providers
Businesses that provide virtual asset services will also be regulated by AUSTRAC (as of 31 March 2026).
Other changes
Any business that provides a designated service and has a geographic link to Australia will be expected to meet AUSTRAC’s AML/CTF obligations. Changes have also been made to international and domestic value transfer services, bearer negotiable instruments, legal professional privilege, and the requirements for reporting entities with foreign branches and subsidiaries.
Further, despite the repeal of the Financial Transactions Reports Act 1988, businesses are expected to meet some confidentiality and recording keeping obligations, and reporting entities are reminded that they are expected to observe tipping off rules, which were updated in 2025.
Key obligations
High risk services, current reporting entities, and newly regulated industries will all be affected and have to meet the following obligations as reporting entities:
- Enrol and register with AUSTRAC
- Develop and maintain an AML/CTF program tailored to the business
- Ensure staff can meet all compliance obligations and also have a governance and/or compliance officer
- Conduct both initial and ongoing customer due diligence
- Report certain transactions and suspicious activities
- Make and keep accurate records
Alongside the six key obligations that AUSTRAC expects all reporting entities to meet, current reporting entities have several other requirements expected of them:
- Risk assessments: identifying and assessing money laundering and terrorism financing (ML/TF) risks
- Updating their enrolment and registration details if they provide newly designated services that fall under the remit of the act
Key dates
There are several dates that AUSTRAC has identified as being important for all businesses that now fall under AML/CTF regulation:
End of January 2026: By the end of January 2026, AUSTRAC will release sector-specific guidance in the form of program starter kits for small, low-complexity tranche 2 businesses, designed to help develop AML/CTF programs
31 March 2026: Enrolment will open for tranche 2 entities and AML/CTF obligations will begin for current reporting entities as well as newly regulated virtual asset providers
1 July 2026: AML/CTF obligations will commence for tranche 2 entities, and AUSTRAC will begin engaging in enforcement efforts with any entity that has ignored its enrolment obligations or is “complicit with, or wilfully blind to, ML/TF in their business”
29 July 2026: Both new and existing businesses that fall under the remit of the act are expected to be enrolled by this date and have established AML/CTF programs in place
Resources for newly regulated businesses
To assist businesses that are unfamiliar with these new rules and regulations, AUSTRAC has prepared numerous resources, including reform guidance which explains what is expected or organisations, how AUSTRAC interprets those obligations, and the steps businesses are expected to take to meet them, risks insights and indicators, webinars, a glossary of key terms, factsheets, a regulation check, as well as a newsletter.
Key takeaways
In light of the changes made to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, AUSTRAC has prepared new rules, guidance, and milestones for businesses, organisations, and individuals across Australia to ensure they are compliant with all new AML/CTF obligations and expectations, and thus better equipped to deal with and combat organised crime.
