AML Amendment 2024: A New Era for Financial Crime Prevention in Australia
#AMLinAustralia #Tranche2 #AMLReforms
December 9, 2024
3 Minutes
The AML Amendment Bill 2024, passed by the Australian Parliament on 29 November 2024, marks a major milestone in Australia’s efforts to combat financial crime. The amendment sends a strong message that Australia is serious about protecting its financial system and communities from money laundering, terrorism financing, and organised crime. It aligns Australia's regime more closely with global standards and strengthens its capacity to deter, detect, and disrupt financial crime.
This legislative reform strengthens the AML/CTF Act 2006 by:
Professionals in the forecited industries must understand their new duties and develop a strong, risk-based AML programme.
Key obligations include:
New legislation (Tranche 2) will extend AUSTRAC’s AML obligations to Tranche 2 entities, starting 1 July 2026, with enrolment from 31March 2026.
The Tranche 2 Reforms are a set of proposed legislative reforms aiming at broadening the scope of Australia's Anti-Money Laundering and Counter-Terrorism Financing laws to include more businesses and professions.
The Tranche 2 Reforms will affect real estate agents, precious metals dealers, lawyers, trust and company service providers, and accountants.
The Tranche 2 Reforms are required to align with global standards established by the Financial Action Task Force (FATF), which recommends that countries regulate DNFBPs within their AML/CTF frameworks and to strengthen Australia's ability to detect, prevent, and combat money laundering and terrorism financing activities.
Regulated entities must conduct detailed risk assessments, develop and implement strong AML/CTF programs, ensure that employees receive adequate training on AML/CTF obligations and the entity's compliance program, establish systems for reporting suspicious activities and keeping records in accordance with regulatory requirements.
New legislation (Tranche 2) will extend AUSTRAC’s AML obligations to Tranche 2 entities, starting 1 July 2026, with enrolment from 31March 2026.
Australia’s real estate industry is facing a significant regulatory shift. Under the upcoming Tranche 2...
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