Overview of exemptions

In certain circumstances, reporting entities can be exempt from some of their AML/CTF compliance and reporting obligations. 

Exemptions can be made in three ways.

  1. They are set out in the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (the Act). These exemptions apply to all reporting entities that meet the criteria.
  2. A reporting entity, group of reporting entities or an industry association can apply to AUSTRAC to create a new exemption through the Anti-Money Laundering and Counter-Terrorism Financing (Class Exemptions and other Matters) Rules 2007 (the Exemption Rules). AUSTRAC consults with industry and other government agencies before making such an exemption, which is then registered and tabled in Parliament. These exemptions apply to all reporting entities and/or designated services that fit the criteria.
  3. A reporting entity can apply to AUSTRAC to have exemptions or modifications granted specifically to them. Find out how to apply for exemptions and modifications.

Exemptions are not a way for you to avoid meeting your obligations. We will only grant an exemption where it is clearly required. Factors that we will take into account in assessing any application include:

  • the business or organisation covered is at low risk of being exploited for money laundering or terrorism financing purposes
  • the Act was not intended to apply to the particular type of business or organisation when the Act was developed
  • the costs and effort of complying would be unreasonable compared to the risks the business or organisation faces
  • the business or organisation would suffer a competitive disadvantage if it was required to comply with the Act.

The exemptions listed on this page are those set out in the Rules and apply to all reporting entities that meet the relevant criteria.

You can also see lists of exemptions and modifications granted to specific reporting entities.

List of exemptions by designated service

The following list sets out those exemptions that apply to specific designated services, as defined in section 6 of the Act, and which are set out in the Exemption Rules.

In addition to links to the explanatory statements for the current Exemption Rules, we have provided a link to the original explanatory statements under former AML/CTF Rules under which the exemptions were originally made. Explanatory statements set out a Rule’s purpose, the reasons behind the Rule, its potential impact and how it will operate.

The original explanatory statements provide additional context and reasons behind these exemptions.

You should make sure you fully understand the legislation before deciding that an exemption applies to you. If you’re not sure whether a particular exemption applies in your circumstances, you should seek independent legal advice.

Financial services

Items 6 and 7 of Table 1 in section 6 of the Act

Item 8 of Table 1 in section 6 of the Act

Item 29 and 30 of Table 1 in section 6 of the Act

  • Chapter 5: Exemption from initial CDD—transfer of value using gift card issued by reporting entity – explanatory statement 

Item 30 of Table 1 in section 6 of the Act

  • Chapter 3: Exemption from initial CDD—automatic teller machines – explanatory statement
  • Chapter 4: Exemption from initial CDD—transfer of value to self-hosted virtual asset wallet – explanatory statement

Item 29 and 30 of Table 1 in section 6 of the Act 

Items 33 and 35 of Table 1 in section 6 of the Act

Item 33 of Table 1 in section 6 of the Act

Item 35 of Table 1 in section 6 of the Act

Items 37, 38 and 39 of Table 1 in section 6 of the Act

Items 42(a) and 43(a) of Table 1 in section 6 of the Act

Item 46 of Table 1 in section 6 of the Act

Item 48 of Table 1 in section 6 of the Act

Item 50 of Table 1 in section 6 of the Act

Professional services

All services listed in Table 6 in section 6 of the Act (professional services)

Items 1, 3 and 4 of Table 6 in section 6 of the Act 

Item 3 of Table 6 in section 6 of the Act 

Related pages

This guidance sets out how we interpret certain Australian legislation, along with associated Rules and regulations. Australian courts are ultimately responsible for interpreting these laws and determining if any provisions of these laws are contravened. 

The examples and scenarios in this guidance are meant to help explain our interpretation of these laws. They’re not exhaustive or meant to cover every possible scenario.

This guidance provides general information and isn't a substitute for legal advice. This guidance avoids legal language wherever possible and it might include generalisations about the application of the law. Some provisions of the law referred to have exceptions or important qualifications. In most cases your particular circumstances must be taken into account when determining how the law applies to you.

Last updated: 31 Mar 2026

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