Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime has undergone significant changes for the first time in almost 20 years.
From 1 July 2026, thousands of businesses that have never previously been subject to AML/CTF regulation are now legally required to comply with the expanded regime.
If your business operates in real estate, law, accounting, conveyancing, trust and company services, or deals in precious metals or stones, it’s imperative you understand your new obligations.
Why are the laws changing?
The reforms are designed to close long-recognised gaps in Australia’s financial crime framework.
For many years, banks and financial institutions have been subject to AML/CTF obligations. However, organised crime has increasingly exploited other industries, particularly property transactions, company structures and professional advisory services, to move and conceal illicit funds.
The expanded laws bring Australia more closely into line with international standards set by the Financial Action Task Force (FATF) and strengthen the country’s ability to detect and prevent money laundering, terrorism financing and other serious financial crime.
Throwback to when the Hume Bank Albury team delivered a seminar on Financial Crime at our Litton Legal office.
Which businesses are now covered?
The reforms extend AML/CTF obligations to many businesses that provide designated services, including:
- Real estate agents and property developers
- Lawyers
- Conveyancers
- Accountants
- Trust and company service providers
- Dealers in precious metals, precious stones and jewellery
Importantly, not every business within these professions will automatically be regulated. The obligations apply where a business provides specific “designated services” under the legislation.
What do newly regulated businesses need to do?
Businesses captured by the reforms must implement an AML/CTF compliance framework appropriate to the level of risk within their business.
While the exact requirements differ depending on the services provided, businesses may need to:
- Enrol with AUSTRAC as a reporting entity.
- Conduct a money laundering and terrorism financing risk assessment.
- Develop and maintain an AML/CTF Program.
- Appoint an AML/CTF Compliance Officer.
- Verify the identity of clients before providing designated services.
- Monitor customer activity and report suspicious matters.
- Maintain appropriate records.
- Provide ongoing staff training.
Rather than adopting a “one-size-fits-all” approach, the new regime places greater emphasis on managing risk based on the nature, size and complexity of each business.
AUSTRAC’s approach
Recognising that these obligations are new for many industries, AUSTRAC has indicated it expects businesses to make genuine efforts to comply from commencement.
Its focus will initially be on businesses that deliberately ignore their obligations or fail to enrol where required, rather than those acting in good faith while implementing appropriate compliance measures.
However, businesses should not mistake this for a grace period. AUSTRAC has made it clear that organisations are expected to have appropriate systems, policies and procedures in place now that the reforms have commenced.
What should businesses do next?
If you think your business may be affected, it’s worth reviewing your services sooner rather than later.
Practical first steps include:
- Determining whether you provide designated services under the legislation.
- Understanding your AML/CTF obligations.
- Completing a business risk assessment.
- Developing an AML/CTF Program.
- Training relevant staff.
- Reviewing client onboarding and identification processes.
Taking proactive steps now can help reduce compliance risks and ensure your business is well prepared for ongoing regulatory obligations.
Need advice?
The expanded AML/CTF regime represents a significant compliance shift for many Australian businesses. Whether you’re unsure if the reforms apply to your business or need assistance developing an AML/CTF Program, obtaining legal advice early can help ensure you’re meeting your obligations with confidence – and here at Litton Legal, we can help!
Head to our contact page here.
