OVERVIEW OF AML/CTF LAW REFORMS
Australia’s AML/CTF regime has undergone significant reform through the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024, introducing a more risk-based and outcomes-focused approach to regulation. These changes are essential for all AUSTRAC reporting entities and will be phased in between March 2025 and July 2026.
Key Changes and Commencement Dates:
Tipping Off Offence (From 31 March 2025):
The offence has been redefined to focus on whether disclosure could reasonably prejudice an investigation. Updated guidance helps entities navigate this change >>> Read the tipping off guidance.
AML/CTF Program Requirements (Effective 31 March 2026):
The new requirements include:
- ML/TF/PF risk assessment:You must identify and assess risks related to money laundering.
- AML/CTF policies:You must create and maintain appropriate AML/CTF policies to manage and mitigate the money laundering and ensure compliance with the general requirements of the AML/CTF Act and Rules.
- Roles and responsibilities: The new framework emphasises the role of governing bodies and senior management in overseeing AML/CTF compliance. It is now an explicit requirement to appoint a fit and proper AML/CTF compliance officer responsible for implementing the AML/CTF program.
Customer Due Diligence (CDD) (Effective 31 March 2026):
CDD divided into initial and ongoing phases, with simplified or enhanced approaches depending on assessed risk.
Screening for sanctions and politically exposed persons (PEPs) is part of initial CDD.
CDD exemptions streamlined, including Keep Open Notices and a lower gambling threshold ($5,000) to meet international standards.
AUSTRAC will release further guidance in mid-2025 to assist entities in meeting updated obligations for our gaming industry.
You can subscribe for updates to remain compliant throughout the transition at the following link >>> Summary of changes for current reporting entities | AUSTRAC
