New AML Rules

If your business provides certain 'designated services' in Australia, you will likely have heard about the upcoming changes to anti-money laundering and counter terrorism financing regulation. The reforms are being driven by the need to update the regulatory framework and bring in new sectors under oversight. These changes are set out in the new Anti‑Money Laundering and Counter‑Terrorism Financing Rules 2025 (the “Rules”) that were tabled in Parliament on 29 August 2025.

In plain terms: the law has been changed, the rules that support the law have been updated, and more businesses will soon fall under the system. Here’s what you need to know.

Why the Reforms Matter

Why bother with all this? Because money-laundering, terrorism financing and what’s called proliferation-financing (the financing of weapons of mass destruction) pose serious threats. The system aims to stop criminals from moving and hiding money, to protect business integrity and the community.

For many businesses, especially those not previously regulated in this way, the reforms mean they will need to adopt new procedures, do more checks and submit certain reports.

Who Will Be Affected & When

There are two kinds of businesses:

1. Current reporting entities: those already covered by the existing AML/CTF regime.

2. Newly-regulated sectors (commonly called Tranche 2): including professions such as real-estate agents, conveyancers, lawyers, accountants and dealers in precious metals and stones.

Key dates to keep in mind:

• For current reporting entities: major changes start 31 March 2026.

• For the newly-regulated sectors: enrolment opens 31 March 2026, and full obligations kick in 1 July 2026.

It’s important: these dates are fixed and businesses need to get ready ahead of time.

What’s New: Key Elements of the Rules

Here are some of the major changes that the Rules bring, described in plain language.

Risk-based compliance

Businesses must now place risk assessment at the core of their AML/CTF program. That means you identify what kinds of money-laundering or terrorism financing risks your business faces (based on your services, customers, geography, value of transactions) and tailor your controls accordingly.

Customer-due-diligence

The rules around checking your customers (what you know about them and what you monitor over time) have been updated. That includes:

• Initial checks when onboarding a customer.

• Ongoing monitoring of the customer’s transactions and risk profile.

• Enhanced checks for higher-risk customers.

• Simpler checks for low-risk customers in some cases (so you’re not over-burdened).

Reporting changes

There are changes to the information you’ll need to include when submitting the equivalent of a suspicious matter report or threshold transaction report. Also, the so-called travel rule (which means that when value is transferred, certain information must “travel” with it) is now part of the framework.

New structure for compliance programs

The “program” you run, being the set of policies, procedures, training, monitoring must now reflect your actual risk environment and be approved and overseen by your senior management. It’s less about ticking boxes and more about genuine outcomes.

What This Means for Your Business

If your business is or will be regulated, this means a few practical things:

• You’ll need to check whether you’re caught by the new regime (especially if you’re in a newly regulated sector).

• Start gathering or updating your risk assessments: what kinds of customers you have, what services you provide, where the risks lie.

• Review your customer identification procedures, transaction monitoring, staff training and governance oversight.

• Ensure you have someone responsible for AML/CTF compliance (called a Compliance Officer) and that senior management is aware of their obligations.

• Keep documentation: your policies, your risk assessments, your training records, your reporting frameworks.

What AUSTRAC Expects Now

The regulator acknowledges that businesses cannot “flip a switch” overnight and become fully compliant from day one. But it expects realistic plans, ongoing progress and proactive effort.

For newly-regulated entities, by 1 July 2026 you must be enrolled, have an AML/CTF program, have trained staff and be ready to satisfy your obligations.

For current reporting entities: keep managing your existing risks, while also preparing the transition to the new framework.

How to Prepare (and Why Now is the Time)

Even if your obligations start in 2026, the preparation should begin now. Here’s what to do:

• Read the guidance released by AUSTRAC to understand what the law will expect.

• Map out your business: what services you provide, who your customers are, what risks you face.

• Document your plan: what you will change, when you will change it, who will oversee it.

• Train your staff: awareness of AML/CTF risk is critical.

• Use the time to get your systems and processes refined, so when the obligations kick in you are ready.

Why act now? Because protracted delays can mean you fall behind, your risk profile is unmanaged, and you may face regulatory scrutiny. Being ahead gives you time to “bed in” your compliance framework rather than scrambling under pressure.

Final Word

The reforms introduced by AUSTRAC and codified in the AML/CTF Rules 2025 are significant. They reflect a shift to more modern, risk-focused regulation and bring more businesses into the fold. For many businesses, especially those newly regulated, this is a substantial change.

But it doesn’t have to be overwhelming. With the right plan, the right mindset and early action, businesses can meet their obligations, manage their risks and perhaps find that the process strengthens their operations rather than simply being a regulatory burden.

If you’re in one of the newly-regulated sectors (or you already are regulated), now is the time to use the transition period wisely. Understand your role, document your program, train your people and embed good practices. The law might change the obligations, but you retain control over how your business manages them.

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