On 11 September 2024, the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 (“Bill”) was introduced to Parliament.
If passed, the Bill would make a number of significant changes to the AML/CTF regime, including:
extend the current AML/CTF regime to ‘high-risk services’ provided by the following entities (also known as ‘tranche two’ entities):
professional service providers, such as lawyers, conveyancers, accountants and trust and company service providers;
real estate professionals; and
dealers in precious stones and metals.
The ‘high-risk services’ that would be regulated typically involve the facilitation or execution of a transaction in the course of carrying on a business (e.g. the sale and purchase of a company, property or precious stone by a lawyer, real estate agent or dealer).
These services would be inserted into section 6 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (“AML/CTF Act”) as Tables 2, 5 and 6.
change a number the requirements that currently apply to AML/CTF Programs, including:
eliminating the concepts of ‘Part A’ and ‘Part B’ of an AML/CTF Program;
eliminating the concepts of ‘standard’, ‘joint’ and ‘special’ AML/CTF Programs; and
replacing the current, prescriptive content requirements with a set of more involved, outcomes-focused obligations.
AFS Licensees that only provide item 54 designated services (i.e. making arrangements for a person to receive a designated service) will retain their exemption from certain requirements relating to AML/CTF Programs.
simplify the current customer due diligence (“CDD”) requirements by shifting the focus of the KYC obligations from procedure to outcome and providing reporting entities with greater flexibility when conducting both initial and ongoing CDD.
amend the tipping off offence to give reporting entities more flexibility to share information about a suspicious matter report or notice for a legitimate purpose.
extend the AML/CTF regime to additional virtual asset-related services (e.g. exchanges between one or more other forms of virtual assets and transfers of virtual assets on behalf of a customer) and to additional virtual assets (e.g. NFTs and stablecoins).
simplify the reporting obligations that currently apply to international funds transfer instructions (“IFTIs”).
endow AUSTRAC with new powers, including a power to obtain information and evidence for enforcement purposes.
lower the threshold for the applicable exemption for casinos, gaming machine operators, on-course bookmakers and totalisator agency boards from conducting initial CCD when providing certain gambling services involving transactions of less than $10,000 to $5,000.
Implementation Timeframe
Most of the changes will commence on 31 March 2026.
Tranche two entities will be able to enrol with AUSTRAC from 31 March 2026 and will be required to comply with the key AML/CTF obligations from 1 July 2026.
If you have any questions about the proposed reforms or your current AML/CTF obligations, please get in touch with Cowell Clarke’s Financial Services Team at Compliance@CowellClarke.com.au.
This publication has been prepared for general guidance on matters of interest only and does not constitute professional legal advice. You should not act upon the information contained in this publication without obtaining specific professional legal advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication and to the extent permitted by law, Cowell Clarke does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting or refraining to act in relation on the information contained in this publication or for any decision based on it.