Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) contains the statutory laws, regulations, and procedures designed to prevent illicit funds from being integrated into the
legitimate financial system.
In Australia, AUSTRAC operates as both the primary regulator and the financial intelligence unit tasked with detecting, deterring, and disrupting money laundering, terrorism financing,
proliferation financing, and organized crime. Regulated entities are obligated to comply with strict risk management responsibilities to protect their businesses and the broader community from
financial crime.
To strengthen this framework, AUSTRAC has introduced comprehensive updates to the AML/CTF regime. Regulated entities are now strictly required to proactively manage money laundering and
terrorism financing (ML/TF) risks, maintain a robust and effective AML/CTF program, and report all suspicious matters.
Expansion of the AML/CTF Regime (Effective 1 July 2026)
Beginning 1 July 2026, the AML/CTF regime expands significantly. Legal firms, accounting practices, and other professional services providing any of the following “designated services” will be
legally required to comply with the updated regulations:
- Real Estate Transactions: Assisting in the planning, execution, or legal transfer of real estate buying and selling.
- Body Corporate Transactions: Assisting in the planning, execution, or representation of individuals in transactions involving the sale, purchase, or transfer of a body corporate or legal arrangement.
- Asset and Fund Management: Receiving, holding, disbursing, or managing client accounts, virtual assets, or other properties during the planning or execution of a transaction.
- Equity and Debt Financing: Assisting in organizing, planning, or executing financing transactions for a body corporate, legal arrangement, or commercial business.
- Shelf Companies: Facilitating the sale or transfer of shelf companies.
- Corporate Creation and Restructuring: Assisting or acting on behalf of an individual to establish, structure, or restructure a body corporate or legal arrangement in the ordinary course of business.
- Fiduciary and Executive Roles: Acting as a director, company secretary, holder of power of attorney, or filling other formal legal capacities in the course of carrying on a business (excluding exceptions covered under subsection 5E).
- Nominee Shareholding: Acting—or arranging for another individual to act—as a nominee shareholder for a body corporate or legal arrangement.
- Registered Office Services: Providing a registered office or business address for a corporate entity.
Next Steps for Professionals
Given the complexity of these regulatory shifts, it is critical to thoroughly review AUSTRAC’s updated programs and guidance materials to determine your specific compliance obligations.
AUSTRAC expects solicitors, accountants, conveyancers, and real estate agents to take proactive ownership of their compliance posture by clearly defining their internal roles, risks, and
responsibilities.
Need assistance?
For comprehensive guidance, updates, and compliance resources, please visit the official AUSTRAC website.
