Australia Implements New Anti-Money Laundering Law to Strengthen AUSTRAC's Investigative Powers

A sweeping new law granting Australia’s financial crime regulator, AUSTRAC, significantly expanded investigative authority came into effect on January 7, 2025. The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 marks a major shift in the nation’s regulatory framework, as AUSTRAC’s oversight expands from approximately 17,000 businesses to nearly 100,000.

The legislation equips AUSTRAC with several powerful tools to combat financial crime. Key provisions include the ability to compel individuals to provide documents or appear for questioning. Those who refuse to comply face severe penalties, including up to two years in prison or fines of $33,000. Furthermore, AUSTRAC now has the authority to seek information without needing a suspicious transaction report, allowing it to broaden its intelligence-gathering capabilities.

The new measures also empower the agency to issue notices to any individual or entity with information relevant to crimes such as money laundering, bribery, and trafficking—not just regulated businesses. Additionally, the law introduces new offences, including failing to comply with examination notices, refusing to answer questions, and misusing examination records. Penalties for these offences range from monetary fines to imprisonment.

The amendments aim to align Australia more closely with international standards set by the Financial Action Task Force (FATF). While the FATF has deemed Australia technically compliant with Recommendation 29, which pertains to financial intelligence units, strengthening AUSTRAC’s enforcement powers has been a long-standing objective for the country.

In November 2024, when the legislation was first announced, AUSTRAC CEO Brendan Thomas emphasized its significance in tackling financial crime. “The money being laundered is generated from illegal activities that cause up to $60 billion in harm to the Australian community, through crimes such as drug trafficking [and] scams,” Thomas said. He added, “This [law] will strengthen the integrity of the regime, enhance our compliance internationally and protect Australians by disrupting financial crime.”

The new law represents a crucial step in Australia’s efforts to detect, deter, and disrupt financial crimes that undermine economic and social stability.

By fLEXI tEAM