Consultation on updates to the new AML/CTF Rules

On 29 August 2025, AUSTRAC tabled the new Anti‑Money Laundering and Counter‑Terrorism Financing Rules 2025 (AML/CTF Rules) in Parliament. The AML/CTF Rules support the amended Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (the Act), as amended by the Anti‑Money Laundering and Counter‑Terrorism Financing Amendment Act 2024.

Since then, AUSTRAC has identified that targeted amendments are needed to improve the effectiveness of the AML/CTF Rules and some minor errors require correction.

The purpose of these proposed changes to the AML/CTF Rules is to:

fully operationalise the Act and rules,
correct newly-discovered issues,
redevelop the reporting group framework to reduce administrative burden for those creating a reporting group and selecting a lead entity.

Overview of proposed amendments

The following provides an overview of the proposed technical amendments to the AML/CTF Rules.

Reporting groups

Several amendments are proposed to the reporting group framework, including:

introducing an ‘opt‑out’ reporting group model, under which related entities in a corporate group or other control structure will form a reporting group by default, unless a reporting entity formally declines membership in writing
consequential amendments to the lead entity provisions to support the opt‑out model and to provide greater certainty for the financial sector. This includes in response to concerns raised about the nature of the relationship between lead entities and other members of reporting groups (paragraph 2‑1(2)(c) of the AML/CTF Rules).

Technical amendments

Additional amendments include:

technical clarifications to the operation of certain customer due diligence provisions
extending the timeframe to verify KYC information previously verified by another party to a real estate transaction
prescribing additional agencies as specified agencies eligible to issue Keep Open Notices
requiring monitoring for prohibited hate group offences as part of monitoring for unusual transactions and behaviours under safe harbour rules
amending the travel rule to extend the existing customer exemption from verifying certain information (including payer address) to all customers for transactions conducted before 1 July 2030
updates and corrections to information required in enrolment and registration applications to accommodate all possible business models and structures
prescribing content of forms applying for reconsideration of a reviewable decision
aligning the compliance report date to the Commonwealth Performance Framework as set in the Public Governance, Performance and Accountability Act 2013

An exposure draft Rules, explanatory statement and a draft future law compilation of the AML/CTF Rules 2025 is provided to assist in understanding the proposed amendments.

AML/CTF Rules (Exemptions and other matters) 2006

For inclusion in this package of proposed amendments, AUSTRAC has also developed a number of rules‑based exemptions which:

provide regulatory relief to specified classes of persons where it was not intended that they be captured by the AML/CTF regime
exempt ATM operators from undertaking initial customer due diligence about people who withdraw less than $10,000 in cash where the person isn’t otherwise the ATM operator’s customer
exempt VASPs from undertaking initial customer due diligence about people who withdraw less than $1,000 in virtual assets to their self-hosted wallet where the person isn’t otherwise the VASP’s customer
exempt reporting entities that issue open-loop gift cards from undertaking initial customer due diligence about the gift card recipient when paying for goods and services where there are other appropriate risk mitigations
exempt other people that issue open-loop gift cards from AML/CTF obligations where there are other appropriate risk mitigations

An exposure draft of the Rules and an explanatory statement is provided to assist in understanding the proposed amendments.

How to make a submission

The consultation period for the exposure draft is 9 February to 20 February 2026.

Use the consultation form to make your submission in Word (DOCX) or Portable Document Format (PDF). You can submit your response under your name or anonymously.

We do not accept submissions via email.

Support and more information

Email reform@austrac.gov.au if you need help with the web form.

Next steps

AUSTRAC will consider all submissions received via the consultation form. We will not respond to individual submissions unless we require more information or clarification.

Following this consultation, we will finalise the amendments to the AML/CTF Rules and publish them. You can subscribe to stay up-to-date on all reform-related changes.