Major reforms to Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime have been passed which intend to bring Australia’s legislation in line with international standards. These reforms commence from March 2026.
We have put together a summary of each of the changes and how they will impact your business. The reforms are divided into two parts:
From 31 March 2026, there will be changes to streamline various AML/CTF requirements such as:
The structure of the AML/CTF Program
The structure of Reporting Groups
AML/CTF Compliance Officers
Customer Due Diligence Requirements
Travel Rule Obligations
Changes have also been made to the offence of tipping off, which have come into effect since 31 March 2025.
Additionally, since January 2025, AUSTRAC has gained new examination and information-gathering powers to assist with their enforcement and intelligence capabilities.
From 1 July 2026, the new regime will expand the list of designated services, thereby regulating additional high-risk professions. These are known as ‘Tranche Two’ entities and include:
Additional designated sevices associated with virtual assets will also be regulated from 31 March 2026.
A number of factors have led to the Australian Government’s decision to extend the AML/CTF regime. Firstly, the Australian Government has been hit with significant damage from money laundering and exploitative practices, which has led to the widening of social inequities*. Secondly, with the lack of robust AML/CTF measures, Australia faces being grey listed by FATF. Being grey listed would have negatives impacts on Australia’s reputation in the global economy and could impact GDP by up to 7.6%.
If your business provides one or more designated services that have a geographical link to Australia, you will have AML/CTF Obligations. These include:
If you are currently involved in one of the Tranche Two industries, the reforms could have significant impacts on your business. Sophie Grace can help. Sign up to receive updates on the Tranche Two Reforms as they are released as well as updated documents that will comply with the new regime.
Sophie Grace can provide you with an AML/CTF Program and can assist you to tailor it to your business’ needs. We have three different options available to suit your business and finance needs.
You can purchase template documents from our online shop. The template is an instant download and includes prompts to help you tailor the document yourself. We have template documents for:
Sign up to the Compliance Portal and receive the template AML/CTF Program Package, and obtain access to updated documents in light of any updates we make as new guidance or amended legislation is released. Choose between:
Sophie Grace can assist you to prepare the AML/CTF Program package based on your business’ specific requirements. Contact us to discuss further.
Find everything you need in relation to the AML/CTF Reforms
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