AML-CTF Rules in Australia Key Compliance Guide 2025

1. AML/CTF Rules in Australia: Key Compliance Guide 2025

2. Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime is entering a new phase in 2025. The reforms bring stricter obligations, expanded coverage of new industries, and updated requirements for reporting entities. For businesses, understanding and complying with the AML/CTF Rules in Australia is crucial to avoid penalties, maintain trust, and strengthen defenses against financial crime. • This guide outlines the key updates, who they affect, and practical steps to ensure your business is ready for the changes. • What’s Changing in 2025 • The Australian Government has introduced amendments to the AML/CTF Act and new AML/CTF Rules to bring the framework in line with international standards. The reforms: • Expand obligations to new sectors such as lawyers, accountants, real estate agents, and dealers in precious metals and stones (Tranche 2). • Regulate virtual asset service providers (VASPs) such as crypto exchanges, custodians, and wallet providers. • Strengthen requirements around customer due diligence, risk assessments, reporting, and record-keeping. • Clarify obligations for both existing reporting entities and new entrants to the regime. • Key dates: • For existing reporting entities, major obligations commence from 31 March 2026. • For Tranche 2 entities, obligations begin from 1 July 2026. • Certain virtual asset-related obligations apply earlier, from March 2026.

3. Core Obligations Under AML/CTF Rules in Australia • 1. Enrolment and Registration • Businesses providing a designated service must enrol with AUSTRAC. VASPs must also register before commencing operations. • 2. AML/CTF Program • Every business must implement a tailored AML/CTF program. This includes: • Documented policies and controls. • Senior management approval and oversight. • Independent review every three years. • Appointment of a compliance officer or manager. • 3. Customer Due Diligence (CDD) • Standard CDD: Verify customer identity and beneficial owners before providing services. • Ongoing CDD: Monitor transactions and update records regularly. • Enhanced CDD: Apply stricter checks to high-risk customers, such as politically exposed persons (PEPs). • Simplified CDD: Allowed in certain low-risk cases. • 4. Reporting Obligations • Businesses must file reports when certain conditions are met, including: • Suspicious Matter Reports (SMRs). • Threshold Transaction Reports (TTRs) for cash transactions of AUD 10,000 or more. • International Funds Transfer Instructions (IFTIs) or equivalent reports for cross-border movements. • Annual compliance reports summarizing AML/CTF performance. • 5. Record-Keeping • All relevant records—customer identification, due diligence, and transaction data—must be kept securely for at least seven years.

4. Who is Affected by the 2025 Reforms • Financial institutions and remittance services (already covered, but with expanded requirements). • Tranche 2 entities: lawyers, accountants, conveyancers, real estate professionals, trust and company service providers, dealers in precious metals and stones. • Virtual asset service providers: exchanges, custodians, and transfer services. • Practical Steps to Achieve Compliance • Conduct a gap analysis: Compare your current policies with the new rules to identify weaknesses. • Define your designated services: Determine if your offerings fall under regulated activities. • Register early: Enrol with AUSTRAC ahead of deadlines to avoid penalties. • Update your AML/CTF program: Cover new requirements such as risk assessments, governance, and reporting. • Appoint a compliance officer: Ensure oversight by senior management. • Train staff regularly: Employees should understand how to spot suspicious activities and apply CDD procedures. • Use technology for monitoring: Automated screening and reporting tools reduce risk of human error. • Review record-keeping systems: Ensure data can be securely stored and retrieved for seven years. • Schedule independent reviews: Regularly test the effectiveness of your AML/CTF program. • Stay informed: Monitor regulatory updates and industry guidance.

5. Risks of Non-Compliance • Failure to comply with the AML/CTF rules in Australia can result in: • Heavy fines and legal penalties. • Criminal prosecution for serious breaches. • Loss of trust from customers and partners. • Increased regulatory scrutiny and reputational damage. • FAQs: AML/CTF Rules in Australia • Q1. When do the new AML/CTF rules take effect? • Most obligations start from March 2026 for existing entities and July 2026 for Tranche 2 entities. • Q2. What is a designated service? • Any regulated activity under the AML/CTF Act, such as financial transactions, remittance, virtual asset services, and professional services. • Q3. Do small businesses need to comply? • Yes, if they provide designated services, regardless of size. • Q4. Are lawyers and accountants included? • Yes. Under Tranche 2 reforms, they must comply if they provide regulated services such as managing client funds or establishing companies. • Q5. What records must be kept? • Businesses must keep customer identification, transaction, and due diligence records for at least seven years.

6. Conclusion The 2025 reforms mark a turning point in how businesses manage financial crime risks. The expanded scope of the AML/CTF rules in Australia means more industries must now implement robust compliance programs. Preparation is key: enrol early, update your AML/CTF program, strengthen due diligence, and ensure reporting processes are reliable. Namescan.iocan help your business stay compliant. With advanced AML/CTF screening, transaction monitoring, and risk management tools, we simplify compliance so you can focus on growth. 👉 Get in touch with Namescan.io today to protect your business and stay ahead of the 2025 compliance requirements.

7. Email Address Address Contact us: sales@namescan.io Suite 213, 7 Railway St, Chatswood, New South Wales, Australia