Home Publications Are you ready for the Anti-Money Laundering And Counter-Terrorism Financing Act 2006 reforms?

Are you ready for the Anti-Money Laundering And Counter-Terrorism Financing Act 2006 reforms?

13 Mar 2026

Litigation, Disputes & Investigations

The Parliament of Australia has passed new Anti-Money Laundering and Counter-Terrorism Financing Amendment (AML/CTF) reforms commencing in March 2026. The reforms represent the most significant expansion of Australia’s AML/CTF regime since its introduction in 2006 and bring a number of additional industries into regulation for the first time.

The new and reframed obligations will commence from 31 March 2026 for existing reporting entities, and from 1 July 2026 for numerous businesses operating in industries that were not previously covered by the regime (commonly referred to as “Tranche 2” entities).

The changes will increase transparency and align Australia’s AML/CTF laws with international standards.

Are you affected?

The following industries will be subject to new reporting requirements from 1 July 2026:

Real estate agents and property developers (with inhouse sales teams);
Lawyers and legal practices;
Other professional service providers (e.g. trust and company service providers, corporate advisors, capital/debt arrangers);
Virtual asset-related services providers (other than Digital Currency Exchanges which are already reporting entities); and
Dealers in precious metals/stones and products.

Preparing for the reforms

Businesses that will be regulated by the Act need to take proactive steps to understand their new AML/CTF obligations and prepare.

The key obligations for reporting entities under the AML/CTF regime include:

enrolling with AUSTRAC;
developing and maintaining an AML/CTF program tailored to their business;
conducting initial customer due diligence;
conducting ongoing customer due diligence;
reporting certain transactions and suspicious activities; and
making and keeping records.

Your AML/CTF program must contain both of the following:

a risk assessment, which identifies and assesses your money laundering, terrorism financing and proliferation financing risks; and
appropriate policies, procedures, systems and controls to manage and mitigate your money laundering and terrorism financing risks and comply with your obligations.

Non-compliance can expose businesses and individuals to civil penalties, infringement notices, enforceable undertakings and reputational risk.

Lavan comment

Early preparation for the significant reforms is critical to ensure that you have the appropriate systems, governance structures and training in place ahead of the March and July commencement dates.

If you or your business would like further advice or assistance on reporting obligations or on how to minimise any risk with respect to the new legislation, please reach out to Iain Freeman.

Disclaimer

The information contained in this publication does not constitute legal advice and should not be relied upon as such. You should seek legal advice in relation to any particular matter you may have before relying or acting on this information. The Lavan team are here to assist.

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