Australia’s Attorney-General outlined significant reforms to the country’s AML/CFT regime, with legislation expected by 2024. The proposed changes are aimed at closing regulatory gaps, particularly around designated non-financial businesses and professions (DNFBPs), and aligning the country more closely with FATF recommendations.

Key components of the roadmap include extending AML obligations to lawyers, accountants, real estate agents, and trust and company service providers. These sectors have been identified as vulnerable to abuse by money launderers and tax evaders, yet they currently operate outside the scope of Australia’s AML laws. The reform also proposes stronger customer due diligence (CDD) requirements and broader enforcement powers for AUSTRAC, Australia’s financial intelligence unit.

For compliance professionals, the roadmap signals the need for immediate preparedness. DNFBPs will need to establish AML compliance programs from scratch, including appointing compliance officers, conducting risk assessments, and training staff. Financial institutions should also expect increased scrutiny of their interactions with these newly regulated entities.

The reform is expected to increase reporting volumes, introduce new typologies for money laundering risk, and strengthen Australia’s global compliance standing. Organizations should begin engaging with legal advisors and industry associations to anticipate changes and mitigate compliance costs. Australia’s reform mirrors global trends toward AML convergence and signals a more aggressive regulatory posture in the Asia-Pacific region.

Source: Anti-money laundering and counter-terrorism financing, AML/CTF Reform and Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024
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