The regulatory priorities are the areas where we will be focusing most of our regulatory effort over the next 12 months.
Benefits of the AML/CTF reforms
Outcome: The benefits of the anti-money laundering and counter-terrorism financing (AML/CTF) reforms are realised through:
- more effective risk management by reporting entities
- increased coverage of Australia’s defences against financial crime.
On 31 March 2026, a range of important changes to existing obligations under the AML/CTF Act came into effect. These affect (among other things) the requirements relating to:
- AML/CTF programs and customer due diligence
- regulation of additional virtual asset services
- the definition of bearer negotiable instruments.
From 1 July 2026, AML/CTF obligations also apply to a range of services typically provided by:
- real estate agents
- dealers in precious metals and stones
- professional service providers such as lawyers, conveyancers, accountants, and trust and company service providers.
The lack of money laundering controls in non-financial businesses creates significant vulnerabilities that criminals have been exploiting. The expansion of AML/CTF regulation is a necessary response to the increasing complexity and scale of financial crime in Australia and globally.
How we achieve this
During FY2026-27:
- Businesses in sectors regulated from 1 July 2026 will have:
- enrolled, and registered where required
- completed ML/TF risk assessments
- appointed governance roles
- established appropriate AML/CTF policies
- embedded them in daily operations.
- Reporting entities in all other sectors will maintain effective money laundering, terrorism financing and proliferation financing (ML/TF) risk management. They will do this while making meaningful progress in implementing the changes required by the AML/CTF reforms.
- We will refine our guidance, education and program starter kits based on engagement with reporting entities and industry bodies.
- We will focus our regulatory interventions on:
- reporting entities in sectors regulated before 31 March who don’t manage their ML/TF risks effectively. This includes those with AML/CTF programs that are not applied in their daily operations
- reporting entities in newly regulated sectors who haven’t enrolled or are recklessly involved in, or complicit with, criminal activity.
Suspicious matter reports
Outcome: Reporting entities provide higher quality suspicious matter reports (SMRs).
The information generated from SMRs:
- plays a crucial role in identifying potential illegal activity
- helps to detect and prevent the flow of illegal funds through our financial system.
High-quality, accurate and timely reports give us and our partners the best chance to detect, deter and disrupt criminal and terrorist activity.
SMRs inform financial intelligence products that help build a clearer picture of criminal activity, rather than looking at transactions in isolation. Where appropriate, we share this intelligence with law enforcement and other partner agencies to support investigations and disruption activities.
During FY2025-26 we conducted supervision and education activities focused on reporting entities submitting lower than expected volumes of SMRs:
- In the payment platforms sector, we saw a 77% increase in SMRs overall and a 264% increase in reports relating to possible child sexual exploitation.
- In the mutual banks sector, we saw a 37% increase in SMRs over a comparable period, with 5 reporting entities lodging SMRs for the first time in several years.
How we achieve this
During FY2026-27:
- We will engage with reporting entities and cohorts whose SMRs are consistently poor quality. We’ll help them understand how to provide more valuable SMRs.
VASP risk management
Outcome: Improved ML/TF risk management within the virtual asset service provider (VASP) sector.
Virtual assets and virtual asset services were assessed as areas of increasing risk under the money laundering national risk assessment 2024. We confirmed this position in our money laundering update 2026.
Virtual assets (including digital currencies) allow criminal groups to move funds across borders quickly, cheaply and with limited ability to identify the sender or recipient. As the legitimate use of virtual assets expands, opportunities for criminal use will also increase. The maturity of virtual asset service provider (VASP) ML/TF risk management practices is highly variable, creating risks of exploitation by criminals.
During FY2025-26 we engaged almost 1 in every 2 registered VASPs through education, outreach and supervision activities. We targeted inactive VASPs as part of a ‘use it or lose it’ blitz which resulted in 62 businesses exiting the sector. This reduces the risk of criminals purchasing inactive VASP businesses and using them to launder money.
How we achieve this
During FY2026-27:
- We will continue to engage with VASPs to increase both regulator and reporting entity understanding of criminal risks in the sector.
- VASPs will continue to improve the controls they use to manage their ML/TF risks.
ML/TF risk management in the Pacific region
Outcome: Greater consistency in managing ML/TF risks in the Pacific region.
Strong regional partnerships contribute great value to the ongoing fight against money laundering and other serious financial crime. We collaborate with Pacific region partners through the Pacific Financial Intelligence Community and the Pacific Supervisors Forum (PSF). We’ll continue to partner on regulatory issues through enhanced capability, improved coordination and joint projects.
During 2025-26 we contributed to re-launch the PSF, with Australia and Nauru as co-chairs. We also contributed to developing the PSF forward workplan. This includes targeted training, capacity building activities and developing resources to support the enhancement of supervisory capability and standardised practices.
How we achieve this
During FY 2026-27:
- Australia and Pacific nations will strengthen our respective regulatory approaches through shared insights and resources.
Productive AML/CTF regime
Outcome: Improving productivity in the Australian AML/CTF regime.
We’re committed to improving productivity in operating the AML/CTF regulatory regime. We’ve identified a number of opportunities to:
- reduce regulatory burden
- streamline or improve how we work together with reporting entities to combat financially-enabled crime.
How we achieve this
During FY2026-27:
- We will explore options for advanced SMR analytics to maximise the value of information reporting entities provide to us. This includes enhanced techniques for SMR feedback to reporting entities to support higher report quality and risk identification.
- We will review and redesign the annual compliance report using our co-design approach to improve clarity and the user experience.
- We will start co-design with industry around the future of international value transfer service (IVTS) reporting. We’ll seek to maximise alignment with relevant global and industry standards and reduce regulatory burden.
Previous regulatory priorities
You can also read our regulatory priorities for previous years:
Related pages
This guidance sets out how we interpret certain Australian legislation, along with associated Rules and regulations. Australian courts are ultimately responsible for interpreting these laws and determining if any provisions of these laws are contravened.
The examples and scenarios in this guidance are meant to help explain our interpretation of these laws. They’re not exhaustive or meant to cover every possible scenario.
This guidance provides general information and isn't a substitute for legal advice. This guidance avoids legal language wherever possible and it might include generalisations about the application of the law. Some provisions of the law referred to have exceptions or important qualifications. In most cases your particular circumstances must be taken into account when determining how the law applies to you.