On 11 September 2024 the (Bill) was introduced to the House of Representatives.[1] The Bill will amend the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AML/CTF Act) to include provisions regarding deterrence, detection and disruption of money laundering and terrorism financing.[2] Most changes will take effect from 31 March 2026.
Objectives of the Anti-Money Laundering Bill
The Bill has three (3) objectives:
- allowing the AML/CTF Act to account for high-risk services provided by tranche two (2) entities which are lawyers, accountants, real estate agents, and property managers in Schedule 1 Division 2 section 26C;[3]
- simplification and clarification of the AML/CTF Act so that businesses have better flexibility and less regulatory impact when attempting to prevent and detect financial crimes in Schedule 5;[4] and
- modernising the regulation of digital currency, as well as virtual asset and payments technology in Schedule 6.[5]
Key changes in the Bill
The Bill’s nine (9) key changes include:
- Changes to AML/CTF program requirements: This includes risk assessment to consider money laundering, terrorism financing and proliferation financing risks the reporting entity may reasonably face, proportionate risk mitigation measures to respond to the risk assessment, a new simplified reporting group concept to allow reporting entities to manage and mitigate common risks more efficiently, roles and responsibilities of a reporting entity’s governing body and AML/CTF compliance officer in Schedule 1.[6]
- Changes to customer due diligence: Includes reporting entities being required to identify and verify the identity of their customer and certain associated persons, and understand the money laundering, terrorism financing and proliferation financing risks associated with providing designated services to the customer and take steps to mitigate these risks, as well as changes to the customer due diligence exemption for assisting investigation of certain offences, and the exemption for the gaming and gambling sector in Schedule 2.[7]
- Regulating additional high-risk services: The Bill will extend the AML/CTF regime to certain higher risk services provided by gatekeeper professions such as estate professionals, dealers in precious stones and precious metals, and professional service providers such as lawyers, conveyancers, accountants, and trust and company service providers in Schedule 3.[8]
- Legal professional privilege includes privilege under Division 1 of Part 3.10 of the Evidence Act 1995 where legal professional; privilege is defined in section 242 and the guidelines in relation to legal professional privilege are provided in section 242A in Schedule 4.[9]
- Changes to the tipping off offence in Schedule 5.[10]
- Changes for the virtual assets sector: This includes exchanges between virtual assets, transfers of virtual assets of behalf of customers, safekeeping or administration of virtual assets, and participation in and provision of financial services related to an issuer’s offer and, or the sale of a virtual asset in Schedule 6.[11]
- Changes for the financial sector: This includes value transfer obligations and international value transfer service reporting, and bearer negotiable instruments in Schedule 7, and Schedule 8.[12]
- AUSTRAC information-gathering powers: This includes a new examination power, notice to produce power, and ‘authorisation to produce’ in Schedule 9.[13]
- Repeal of the Financial Transaction Reports Act 1988: This is located in Schedule 11.[14]
Customer due diligence standards substantially updated
The Explanatory Memorandum to the Bill clarifies that customer due diligence should be focused on the outcomes to be achieved.[15]
Key obligations for reporting entities
If the Bill is passed, reporting entities under the AML/CTF Act will be obligated to:
- enrol with AUSTRAC;
- develop and maintain an AML/CTF program tailored to their business;
- conduct initial consumer due diligence;
- conduct ongoing customer due diligence;
- report certain transactions and suspicious activities; and
- make and keep records.[16]
Links and further references
Legislation
Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024
Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 Explanatory Memorandum
Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1)
Further information about anti-money laundering compliance
If your business needs advice on any aspect of anti-money laundering compliance, contact us for a confidential and obligation-free discussion:
Malcolm Burrows B.Bus.,MBA.,LL.B.,LL.M.,MQLS.
Legal Practice Director
T: +61 7 3221 0013 (preferred)
M: +61 419 726 535
E: mburrows@dundaslawyers.com.au
Disclaimer
This article contains general commentary only. You should not rely on the commentary as legal advice. Specific legal advice should be obtained to ascertain how the law applies to your particular circumstances.
[1] Anti-Money Laundering and Counter Terrorism Financing Amendment Bill 2024 (Cth).
[2] Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth).
[3] Anti-Money Laundering and Counter Terrorism Financing Amendment Bill 2024 (Cth) Schedule 1 Division 2 section 26C.
[4] Anti-Money Laundering and Counter Terrorism Financing Amendment Bill 2024 (Cth) Schedule 5.
[5] Anti-Money Laundering and Counter Terrorism Financing Amendment Bill 2024 (Cth) Schedule 6.
[6] Anti-Money Laundering and Counter Terrorism Financing Amendment Bill 2024 (Cth) Schedule 1.
[7] Anti-Money Laundering and Counter Terrorism Financing Amendment Bill 2024 (Cth) Schedule 2.
[8] Anti-Money Laundering and Counter Terrorism Financing Amendment Bill 2024 (Cth) Schedule 3.
[9] Anti-Money Laundering and Counter Terrorism Financing Amendment Bill 2024 (Cth) Schedule 4 section 242, section 242A.
[10] Anti-Money Laundering and Counter Terrorism Financing Amendment Bill 2024 (Cth) Schedule 5.
[11] Anti-Money Laundering and Counter Terrorism Financing Amendment Bill 2024 (Cth) Schedule 6.
[12] Anti-Money Laundering and Counter Terrorism Financing Amendment Bill 2024 (Cth) Schedule 7; Schedule 8.
[13] Anti-Money Laundering and Counter Terrorism Financing Amendment Bill 2024 (Cth) Schedule 9.
[14] Anti-Money Laundering and Counter Terrorism Financing Amendment Bill 2024 (Cth) Schedule 11.
[15] Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 (Cth) Explanatory Memorandum.
[16] Anti-Money Laundering and Counter Terrorism Financing Amendment Bill 2024 (Cth) Schedule 1.
Related insights about anti-money laundering compliance
-
WIJOAV v Goldstone – shareholder oppression in a private equity context
The recent case of WIJOAV Services Pty Ltd v Goldstone Private Equity Pty Ltd [2025] FCA 622 (WIJOAV v Goldstone) involved a claim of shareholder oppression under section 232 of the Corporations Act 2001 (Cth) (Corporations Act). The case established that a shareholder in a private equity fund may be oppressed by a co-investor where…
-
Federal Court dismisses continuous disclosure claim
The Federal Court recently dismissed Australia Securities and Investment Commission’s (ASIC) claim in Australian Securities and Investment Commission v Nuix Limited [2026] FCA 490 (ASIC v Nuix) that Nuix Limited breached its obligations under section 674 of the Corporations Act 2001 (Cth) (Corporations Act). Nuix Limited (Nuix) successfully contested ASIC’s allegation that it had breached…
-
Does your start-up meet the ESIC tax-offset criteria?
Federal government introduced the Tax Laws Amendment (Tax Incentives for Innovation) Act 2016 (Cth) to provide tax incentives for investors in an eligible early stage innovation company (ESIC), including 20% up-front non-refundable tax offset and capital gains tax (CGT) exemption for all types of investors meeting criteria.
-
Valuing ESS Interests
A company, whether listed or unlisted, can grant its employees an interest in its equity (ESS Interest), including through an employee share scheme (ESS) or employee share option plan (ESOP). There are restrictions contained in both the Corporations Act 2001 (Cth) (Corporations Act) and Income Tax Assessment Act 1997 (Cth) (ITAA) that determine the price…
-
ESS vs ESOP – what’s the difference?
Employee share schemes (ESS) and employee share option plans (ESOP) are commonly used by corporations to incentivise employees and align performance with company growth by providing them with an interest in the company. While the terms are often used interchangeably, they have distinct legal and structural differences under Australian law. This article explains the key…
-
Disputed ESOP – Selak v National Tiles Co Pty Ltd
In the case of Selak v National Tiles, the Vic Supreme Court considered whether a company breached an option agreement governed by the terms of an Employee Share Option Plan (ESOP) by requiring an option holder to execute an undisclosed shareholders’ agreement as a condition of exercising vested options.
-
Can a unit trust be wound up by the oppression remedies
The Corporations Act 2001 (Cth) (Corps Act) grants the Courts the power to award remedies under section 233, specifically designed to address situations of oppression within corporate entities under section 232. These remedies, also known as the “Oppression Remedies”, aim to resolve situations where a company’s conduct unfairly prejudices its members or shareholders. While primarily…
-
Directors’ obligations to comply with Accounting Standards
Directors are personally liable for ensuring their company operates in accordance with corporate governance and accounting standards. Obligations contained in part 2M.2 and 2M.3 of the Corporations Act 2001 (Cth) (Corporations Act) outline obligations for companies to keep financial records and prepare annual financial and director’s reports. Sections 180 and 344 of the Corporations Act…
-
Accounting standards matter: the company’s obligation
Australian accounting standards (Accounting Standards) are often considered solely the domain of auditors and accountants. However, they are a crucial aspect of corporate law and governance in Australia. For directors, officers, and their professional advisers, the key issue is not the technical details of the Accounting Standards, but rather their legal enforceability. A failure to…
