The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth) will come into force in March 2026 and is designed to enhance compliance, reduce the risk of financial crime and adhere to global compliance standards
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Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 (Cth) 10 December 2024 (“Anti-Money Laundering/Counter-Terrorism Financing Amendment Bill“) received Royal Assent. The legislation substantially amends the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (“Anti-Money Laundering/Counter-Terrorist Financing Law”) and bring significant reforms to Australia’s anti-money laundering and counter-terrorism financing (“Anti-Money Laundering/CTF“)regime.
The amendments aim to close key legislative gaps and better align Australia’s AML/CFT regime with international standards set by the Financial Action Task Force (financial action task force). Brendan Thomas, Australian Transaction Reports and Analysis Center (Australian Transaction Reports Analysis Center) CEO said the Anti-Money Laundering/Counter-Terrorism Financing Amendment Bill would “close these gaps and minimize the regulatory burden on currently regulated businesses”.
Most of these amendments will not come into effect until March 2026, allowing businesses currently within the scope of the new designated service category legislation, as well as existing reporting entities, to review and update their plans and policies to ensure compliance with the AML/CTF framework.
Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 (Cth) 10 December 2024 (“Anti-Money Laundering/Counter-Terrorism Financing Amendment Bill“) received Royal Assent to amend the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (“Anti-Money Laundering/Counter-Terrorist Financing Law“).
Before the Anti-Money Laundering/Counter-Terrorism Financing Amendment Act came into force, Australia was one of five jurisdictions that did not regulate “stage two” entities. In 2015, the FATF reviewed Australia’s failure to comply with international AML/CTF standards, noting a lack of regulation of “high-risk” services (also known as “stage two” entities) such as real estate professionals, professional service providers and Gem and metal dealer. The 2016 statutory review of Australia’s AML/CTF regime recognized this shortcoming, leading to the development of the AML/CTF Amendment Act.
The Anti-Money Laundering/Counter-Terrorism Financing Amendment Bill addresses three main objectives:
- Expand the scope of the AML/CFT regime to include certain “high risk” services or “Part 2 entities” that do not fall within the scope of the current regime, such as real estate professionals, professional service providers including lawyers, accountants , trust and corporate service providers and gem and metal dealers;
- Simplify the AML/CFT regime to increase effectiveness and provide clarity for businesses to comply with their obligations; and
- Update the system to reflect contemporary business structures, technology and illicit financing methods.
For more information on the inclusion of Tier 2 entities under the Anti-Money Laundering/Counter-Terrorism Financing Act, please see our previous client alert.
The table below sets out the amendments to the Anti-Money Laundering/Counter-Terrorism Financing Act and the effective date of each schedule.
| Terms | summary of regulations | Date/Details |
| Schedule 1 – AML/CTF Program and Business Group | Establish the reporting entity framework and define the entities that make up the “reporting group”. Provide an overview and establish the requirements for reporting entities to maintain and comply with the AML/CTF program. Reporting entities must also conduct assessments to determine the risks of money laundering and terrorism financing. The amendments also set forth establishment, compliance and recordkeeping requirements related to the AML/CTF program. | March 31, 2026 |
| Schedule 2 – Customer Due Diligence | Clarifies the requirements and processes that reporting entities must follow when conducting initial and ongoing customer due diligence. | March 31, 2026 |
| Schedule 3 – Regulation of additional high-risk services | Expands the scope of the Anti-Money Laundering/Counter-Terrorist Financing Act to include new designated services, namely “high-risk” services or “Part II” entities, such as real estate professionals, dealers in precious metals and gemstones, and professional service providers. | March 31, 2026 |
| Schedule 4 – Legal professional privilege | Clarifies the information required on how AML/CTF should be dealt with when it may be subject to legal professional privilege. | July 1, 2026 |
| Schedule 5 – Reporting breaches and disclosing AUSTRAC information to foreign countries or agencies | Reform current regulations to prevent entities from “reporting” suspicious behavior related to their behavior to their customers. Instead, the criminal focus has shifted to preventing the disclosure of information that could hamper investigations. Two exceptions are provided for appropriate disclosure of information. | Item 1 of Schedule 5 commences on 31 March 2026. Item 2 of Schedule 5 commences on 31 March 2025. Division 2 of Part 1 of Schedule 5 starts on 31 March 2026. Part 2 of Schedule 5 comes into force on the later of item 2 of Schedule 5 and item 94 of Schedule 1 to the Intelligence Services Legislation Amendment Act, whichever is later, in 2024. |
| Schedule 6 – Services related to virtual assets | Replace the term “digital currency” with “virtual assets” and expand the Anti-Money Laundering/Counter-Terrorist Financing Act to include virtual asset-related services. The definition of virtual assets has been revised to cover a broader range of “virtual assets”. | Part 1 of Schedule 6 comes into force on 31 March 2026. Part 2 of Schedule 6 comes into force on the commencement of Part 1 of Schedule 6 of the Crime and Other Legislation Amendment (Consolidation No. 1) Act 2024 and immediately after the commencement of Schedule 2. |
| Schedule 7 – Definition of bearer negotiable instrument | Clarifies the definition of “bearer negotiable instrument.” | July 1, 2026 |
| Schedule 8 – Value Transfer and International Value Transfer Services | Simplify terminology and concepts related to regulation of wire transfers, remittances, and virtual asset transfers. Revise the reporting system for international funds transfer instructions. | March 31, 2026 |
| Schedule 9 – Powers and Definitions | Establish new information collection powers to enable AUSTRAC to obtain information and documents to assist law enforcement decision-making and intelligence purposes. | Parts 1 to 3 of Schedule 9 come into effect on 7 January 2025. Part 4 of Schedule 9 comes into force on the later of Parts 1 to 3 of Schedule 9 and immediately upon the commencement of item 94 of Schedule 1 to the Intelligence Services Legislation Amendment Bill 2024. |
| Schedule 10 – Exemptions | Transfer exceptions to certain AML/CTF obligations from the AML/CTF Rules to the AML/CTF Bill to enable greater parliamentary oversight of appropriate exemptions for designated services. | March 31, 2026 |
| Schedule 11 – Repeal of the Financial Transactions Reporting Act 1988 | Complete repeal of the Financial Transactions Reporting Act 1988 (Cth). | January 7, 2025 |
| Schedule 12 – Transitional Rules | Enables the Minister to adopt a legislative instrument to establish transitional rules related to amendments to the Anti-Money Laundering/Counter-Terrorism Financing Act. The Schedule also contains a “Henry VIII Clause” under which rules made within four years of the commencement of the AML/CFT Act can modify the operation of the main AML/CFT Act. | January 7, 2025 |
Due to the significant amendments to the Act, reporting entities should review the amendments to the AML/CTF Act to consider how their operations will be affected and consider whether new policies and procedures are required to fully comply with their obligations under the Act. Anti-money laundering/counter-terrorist financing framework.
AUSTRAC reports that it has been working closely with industry representatives to provide education and guidance to ensure reporting entities clearly understand and meet their reporting obligations. AUSTRAC has released its first public consultation on the development of proposed new AML/CFT rules since the publication of the Anti-Money Laundering/Counter-Terrorist Financing Amendment Bill (“rule”). AUSTRAC invites industry submissions on the rules and consultation documents. The first of two rounds of consultation will close at midnight on 14 February 2025. We will provide an in-depth update on the first round of consultation in early 2025.
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