Consultation hub

We held a second round of consultation on reforming Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime between May and June 2024.

This second round of consultation built upon the first round of consultation undertaken in 2023. We considered feedback from the first round of consultation and used it to develop detailed reform proposals outlined over 6 consultation papers. 

We sought public input through written submissions and through virtual and in-person meetings with affected sectors.

We held over 40 targeted consultations with industry and government stakeholders, including roundtables with peak industry bodies, bilateral engagements with industry members and addresses at industry events. 

We received over 130 submissions from stakeholders across all affected sectors, as well as from government, academics, civil society and individuals. With consent, we have published 104 of these submissions.

Key themes

Reflecting similar feedback from the first round of consultation, there was broad support for the reforms. Submissions provided useful insights into how the AML/CTF regime could be strengthened to build Australia’s resilience against criminal exploitation and protect businesses that are at the frontline of financial crime prevention. Stakeholders noted several inefficiencies in the regime that limit the effectiveness of Australia’s response to transnational crime.

Overall, stakeholders supported the proposed reforms to simplify, clarify and modernise the existing regime to make it easier for regulated businesses to identify and mitigate illicit financing risks and to comply with their AML/CTF obligations. 

Current reporting entities welcomed proposals to expand the regime to address vulnerabilities in ‘gatekeeper’ professions, including lawyers, accountants, real estate professionals and dealers in precious stones and metals (also known as tranche two entities). There was also support for ensuring the regime keeps pace with the increasingly digital, instant nature of the global financial system, by updating digital and virtual asset services.

Most stakeholders demonstrated an understanding that the proposed reforms aim to improve Australia’s compliance with the global standards to combat money laundering and terrorism financing. Stakeholders sought additional details on the specific impacts on their businesses – this information will be set out in forthcoming consultations on amendments to the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) (AML/CTF Rules). 

Thank you to everyone who contributed valuable feedback to the consultation processes. 

Feedback from both rounds of consultation will inform government consideration of the final policy changes and legislation. Timing for any legislation is a matter for government. 

There will be ongoing opportunities to influence and work with government on the detailed impact of the reforms on businesses through upcoming consultation on the AML/CTF Rules led by AUSTRAC. AUSTRAC will also collaborate with industry on fit-for-purpose, tailored industry education and guidance, particularly for new tranche two entities.

On 27 February 2024, the Attorney-General released the Terms of Reference for a Review of Australia’s Credit Reporting Framework (the Review). The Australian Government appointed Ms Heidi Richards as the independent reviewer.

The Review is considering the overall efficiency and effectiveness of Australia’s Credit Reporting Framework in the Privacy Act 1988 and the National Consumer Credit Protection Act 2009.

On 26 April 2024, Ms Richards released an Issues Paper, which was open for written submissions until 31 May 2024. The issues paper set out key areas of focus for the independent review and included around 50 discussion questions.

The Review received 31 submissions from a broad range of stakeholders, including regulators, external dispute resolution services, credit providers, credit reporting bodies, consumer groups, industry peak bodies and others. Ms Richards has also undertaken bilateral discussions with stakeholders to support the findings of the Review. 

The Review is currently considering the submissions which will inform Ms Richard’s report to Government. The report will be provided to the relevant ministers no later than 1 October 2024. We have published submissions where consent has been given to do so.

On 3 April 2024, the Attorney-General published a draft of the Identity Verification Services Rules 2024 (the Rules) on the department’s website for a 28-day consultation period, as required under the Identity Verification Services Act 2023 (the Act).

The purpose of the Rules is to prescribe the following matters, which are needed to support the operation of the Act and the identity verification services:

• listing state and territory privacy laws and government authorities, which must be listed for the purposes of participation agreements
• listing state and territory privacy laws, which must be listed for the purpose of the NDLFRS hosting agreement
• setting fees that government authorities and non-government entities must pay to connect to, and request the use of, the identity verification services.

We received 8 submissions from advocacy groups and academia, government agencies, and industry organisations during the consultation period.

We also held targeted consultations with relevant industry organisations and Commonwealth, state and territory government authorities. This included:

• Commonwealth data holding agencies, and relevant state and territory government agencies
• Commonwealth law enforcement, intelligence and integrity agencies
• key industry stakeholders, in particular, Gateway Service Providers.

Most submissions provided feedback on the proposed fees and the timings for the commencement of the Rules. A submission also noted further privacy safeguards that could be included in the Rules. While out of scope of the Rules, respondents also provided technical suggestions on the operation of the identity verification services.

In accordance with paragraph 44(1B)(b) of the Act, the Attorney-General also consulted the Information Commissioner on the Rules in relation to privacy matters.

As required by paragraph 44(1B)(c) of the Act, the Attorney-General considered all submissions received during the consultation period.

In response to feedback received, a change was made to subsection 8(2) of the Rules to clarify the application of connection fees where a government authority or non-government entity is seeking to have multiple connections to the same approved identity verification facility. This amendment better reflects existing arrangements for certain government authorities. To support this change, minor and technical consequential amendments were made to subsection 8(3). 

We will continue to engage with relevant stakeholders to support the implementation of the Rules and will consider broader feedback as part of the review mechanisms under the Act.

The finalised Rules commenced on 14 June 2024. You can access the Rules and associated Explanatory Statement on the Federal Register of Legislation.

We thank everyone who engaged with this consultation process and provided a submission.