Australia Introduces New Bill to Strengthen Anti-Money Laundering and Counter-Terrorism Financing Framework

On Wednesday, the Australian Government introduced the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Amendment Bill 2024 into Parliament. This new legislation marks a significant step in enhancing Australia’s defenses against financial crimes. Its goal is to update and strengthen the existing framework to better address the growing threats posed by money laundering, terrorism financing, and other forms of serious organized crime.

The proposed Bill seeks to amend the current Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). If passed, it will revamp Australia’s AML/CTF regime, aiming to more effectively deter, detect, and disrupt financial crimes. The changes will also bring the country’s legislation in line with international standards set by the Financial Action Task Force (FATF), which is scheduled to conduct its next mutual evaluation of Australia in 2026.

According to the government’s media release, the Bill addresses key areas of concern, including extending the AML/CTF regime to cover 'tranche-two' entities such as lawyers, accountants, real estate professionals, and dealers in precious metals and stones—sectors that have been identified as particularly vulnerable to criminal exploitation.

In addition, the legislation seeks to modernize the regulation of virtual assets and payment technologies. One important change will be the introduction of a new definition of 'virtual asset' in the AML/CTF Act, replacing the existing terminology of 'digital currency'. This revision is intended to provide clarity and ensure that newer asset types, including stablecoins and non-fungible tokens (NFTs), are captured within the scope of the law.

The Bill also proposes significant changes to Customer Due Diligence (CDD) requirements. The government has indicated that the legislation would 'reframe and clarify the core requirements for reporting entities to carry out initial and ongoing CDD' and will 'clarify when enhanced CDD must be applied'. These measures are particularly aimed at the gaming and gambling sectors, including casinos, bookmakers, totalizator agency boards, and gaming machine operators. For these businesses, the threshold for triggering CDD obligations would be reduced from AU$10,000 ($6,700) to AU$5,000 ($3,300), bringing Australia in line with FATF recommendations and aligning with state-level regulations in New South Wales and Queensland.

If passed, this change will take effect on March 31, 2026, along with other adjustments outlined in the Bill. The legislation also aims to expand AUSTRAC’s 'information-gathering powers' to strengthen enforcement. These powers will allow AUSTRAC to 'obtain relevant information needed to make enforcement decisions and obtain evidence to be used in AML/CTF court proceedings'.

Beyond enhancing security measures, the Bill seeks to streamline and simplify the existing framework, making it more flexible for businesses while reducing their regulatory burden. The government expects these reforms to improve the quality of financial data and offer businesses greater protection from misuse by criminals.

The reforms are the result of extensive consultations held by the Attorney-General’s Department and AUSTRAC throughout 2023 and 2024. This included two formal consultation rounds and the release of seven detailed consultation papers. Over 100 meetings were held with industry stakeholders and government representatives, including industry roundtables, ensuring that a wide range of perspectives were considered in the drafting of the Bill.

AUSTRAC plans to start consultations on the draft bill later this year. If passed, the agency will work closely with industry stakeholders to develop sector-specific guidance on the new regime. AUSTRAC also plans to launch 'dedicated education products' and set up a call center to assist businesses with compliance.

The majority of the proposed changes would come into effect on March 31, 2026, while some adjustments, particularly those impacting the financial sector, would be delayed until July 1, 2026.

It’s worth noting that several major Australian gaming operators have previously faced penalties for failing to comply with anti-money laundering regulations. For example, in October 2022, Star Entertainment was fined AU$62 million for not preventing money laundering at its Sydney casino. Similarly, Crown Melbourne was fined in 2023 and subjected to stricter AML/CTF measures. If the new Bill is passed, gaming operators in Australia will likely need to update their compliance strategies, which could lead to increased costs for the industry.

By fLEXI tEAM