Reforming Australia’s anti-money laundering and counter-terrorism financing regime

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.