Key dates for the reforms
The AML/CTF reforms are set out in stages, affecting both existing and newly regulated entities. As a reminder:
- Existing providers: Changes to your obligations will come into effect on 31 March 2026.
- Newly regulated entities (Tranche 2): Businesses in the legal, accounting, real estate and precious metals and stones industries will be regulated from 1 July 2026. This includes a key preparatory date: enrolment with AUSTRAC opens 31 March 2026.
Summary of the Changes
The reforms aim to simplify and modernise Australia’s AML/CTF regime, bringing it in line with international standards set by the Financial Action Task Force.
- The regime is expanding to cover new designated services, which will bring thousands of new entities, including certain professional service providers, into the fold (like accountants, lawyers, conveyancers, and real estate agents).
- The new laws will simplify and clarify AML/CTF requirements, moving from a prescriptive, box-ticking approach to a more risk-based, outcomes-oriented framework.
- The previous separation of programs into Part A and Part B will no longer be a requirement. The new framework will place greater emphasis on governance, with governing bodies and senior management being required to take reasonable steps to ensure their business is appropriately identifying, assessing, and managing risks.
- Obligations for both initial and ongoing CDD will be redesigned to be more targeted and flexible, focusing on higher-risk customers and transactions.
- The ‘tipping off’ offense has been amended to facilitate better information sharing to manage financial crime risks.
What you can do now
- Stay informed and subscribe for updates to AUSTRAC for the latest on their education resources, events, and guidance.
- Continue to manage your existing controls to prevent money laundering and terrorism financing.
Kit Legal has a custom AML/CTF framework for Wealth Advice, Accountancy and Legal firms. Please contact us via the contact form for more information.