About the reforms

Australia’s economy continues to be exploited by serious and organised crime. 

These criminals exploit services provided by legitimate businesses to help disguise the illicit origins of their funds. Laundered funds are reinvested in further criminal activity, including child exploitation, drug and sex trafficking, scams, fraud, terrorism and the proliferation of weapons of mass destruction. 

To keep up with an ever-changing criminal environment, the Australian Government has recently reformed Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). 

Australia’s anti-money laundering, counter-terrorism financing, and counter-proliferation financing (AML/CTF) regime includes the AML/CTF Act, the Anti-Money Laundering and Counter-Terrorism Financing Rules 2007 (the Rules) and associated regulations. It is a central part of our efforts to prevent criminals from enjoying the profits of their illegal activity and stopping funds from falling into the hands of terrorists.

Businesses are at the frontline in the fight against serious financial crime. 

The AML/CTF regime helps businesses to identify risks and prevent or disrupt criminal activities. It also provides law enforcement with valuable intelligence in the fight against serious and organised crime. This helps to protect the Australian community and businesses from serious harm.

On this page 

New AML/CTF laws

On 29 November 2024, the Parliament of Australia passed the AML/CTF Amendment Bill 2024 (the Bill), amending the AML/CTF Act. 

The new laws reform Australia’s AML/CTF regime to ensure it continues to effectively deter, detect and disrupt money laundering, terrorism financing and proliferation financing. They also ensure our laws meet international standards set by the Financial Action Task Force, the global financial crime watchdog and standard-setter.

Find out more about AML/CTF laws at the following links: 

Key changes under the new laws

Regulation of high-risk services 

The new laws will expand AUSTRAC’s regulation into new industries that are recognised domestically and globally as high-risk for criminal exploitation.

This includes certain designated services that are typically provided by the following businesses (tranche 2 entities): 

  • real estate professionals
  • dealers in precious stones, metals and products
  • professional service providers such as lawyers, conveyancers, accountants, and trust and company service providers.

Businesses that provide these services will be regulated by AUSTRAC from 1 July 2026. 

The current regulation of digital currency to fiat currency exchanges will also be expanded to include additional services provided by virtual asset service providers. 

Businesses that provide these additional services will be regulated from 31 March 2026. 

Use the online tool to find out if you might be regulated. 

Changes for current reporting entities

The new laws will see changes to obligations for current reporting entities. 

This includes: 

  • changes for the financial services sector relating to value transfer obligations and the definition of bearer negotiable instruments
  • changes to AML/CTF program requirements and customer due diligence.

These reformed obligations will apply to current reporting entities from 31 March 2026. 

Changes to the tipping off offence came into effect on 31 March 2025. The changes focus on whether disclosing information protected by the tipping off offence would or could reasonably be expected to prejudice an investigation. For more information, read the tipping off guidance.

Changes for businesses regulated under the Financial Transaction Reports Act 1988

The Financial Transaction Reports Act 1988 (FTR Act) was repealed on 7 January 2025. 

Affected businesses include: 

  • solicitors
  • businesses that buy and sell traveller’s cheques
  • motor vehicle dealers who act as insurance providers or intermediaries 
  • online remitters which do not provide designated services at or through a permanent establishment in Australia.

Your business is no longer required to make reports under the FTR Act for transactions occurring from 7 January 2025, but you may still have ongoing confidentiality and record-keeping obligations. AUSTRAC may also request further information about reports you submitted before the FTR Act was repealed.

Learn more about your ongoing obligations following the FTR Act repeal. 

Important dates

Key dates related to the reforms: 

2024/25

  • 29 November 2024: Passage of the AML/CTF Amendment Bill
  • 10 December 2024: AML/CTF Amendment Act receives Royal Assent
  • November 2024 to May 2025: Consultation on AML/CTF Rules 
  • 11 December 2024 to 14 February 2025 – First exposure draft consultation on AML/CTF Rules
  • 7 January 2025: Repeal of Financial Transaction Reports Act 1988 
  • 31 March 2025: Commencement of changes to the tipping off offence
  • July to August 2025: Public consultation on draft core guidance 
  • July 2025: Finalisation of AML/CTF Rules
  • September 2025: Finalisation of core guidance

2026

  • January 2026: Finalisation of tranche 2 sector-specific guidance
  • 31 March 2026: Changes to obligations for current reporting entities and virtual assets service providers
  • 1 July 2026: AML/CTF obligations commence for tranche 2 entities 
  • 2026: Ongoing enhancements to the sector-specific guidance for current reporting entities in partnership with industry
  • Post 2026: International value transfer service reporting will commence under transitional arrangements (previously referred to as ‘international funds transfer instruction’ reporting).

AML/CTF Rules consultation

Further detail on the practical application of the AML/CTF regime will be set out in the AML/CTF Rules. We are working closely with industry, government agencies and other stakeholders to develop the new AML/CTF Rules. 

The first round of public consultation on the draft AML/CTF Rules has now closed, however you can still view the draft AML/CTF Rules. A second round of consultation will take place before the Rules are finalised in July 2025. 

Consultation on the new laws

The development of the Bill was informed by 2 rounds of consultation led by the Attorney-General’s Department (AGD). From April 2023 to June 2024, AGD received over 270 submissions and held over 100 stakeholder meetings.

For more information on these consultations and industry feedback, go to the Consultation Hub – Modernising Australia’s AML/CTF regime.

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The content on this website is general and is not legal advice. Before you make a decision or take a particular action based on the content on this website, you should check its accuracy, completeness, currency and relevance for your purposes. You may wish to seek independent professional advice.

Last updated: 31 Mar 2025
Page ID: 1154

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