On 29 August 2025, we tabled the new AML/CTF Rules in Parliament as part of the AML/CTF reforms. The AML/CTF Rules support the Anti‑Money Laundering and Counter‑Terrorism Financing Amendment Act 2024.

Since then, we have identified some targeted amendments to improve the effectiveness of the AML/CTF Rules and correct some minor errors.

The purpose of the 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.

Reporting groups

We made several changes to the Rules related to the reporting group framework.

We have introduced an ‘opt‑out’ reporting group model. This allows related entities in a corporate group or other control structure to form a reporting group by default, unless a reporting entity formally declines membership in writing. We have also introduced consequential amendments to the lead entity provisions to support the opt‑out model and to provide greater certainty for the financial sector. These changes address feedback we received from industry around the administrative burden of the process to form a group, while preserving an administratively simple process to decline forming a reporting group.

Technical amendments

We made a number of other technical amendments to the Rules. This includes the following changes to customer due diligence (CDD):

• technical clarifications to the operation of certain CDD provisions
• extending the timeframe to verify know your customer (KYC) information previously verified by another party to a real estate transaction
• introducing a deemed CDD for real estate agents in relation to CDD on counterparties where genuine attempts have been made to conduct CDD with no success.

We also made changes related to other reporting entity obligations, including:

• updates and corrections to information required in enrolment and registration applications to accommodate all possible business models and structures
• amendments to align enrolment and registration application information to accommodate all business structures
• aligning the annual compliance report period and lodgement date to the Commonwealth Performance Framework as set out in the Public Governance, Performance and Accountability Act 2013
• 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.

We also made changes to some AUSTRAC processes and CEO powers:

• prescribing content of forms applying for reconsideration of a reviewable decision
• prescribing additional agencies as specified agencies eligible to issue keep open notices
• prescribing the provisions under the Act that the AUSTRAC CEO may use computer programs to take administrative action.

Exemptions

We have also developed a number of exemptions. These will 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
• virtual asset service providers (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
• 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
• other people that issue open-loop gift cards from AML/CTF obligations where there are other appropriate risk mitigations.

The exemptions also provide regulatory relief to specified classes of persons where it was not intended that they be captured by the AML/CTF regime. This includes:

• providers of legal assistance
• barristers providing services to Australian government bodies
• clearing and settlement facility operators providing services incidental to the operation of the clearing and settlement facility.

More information

The Rules are in 2 instruments. To read the amendments to the Rules you can visit: 

• Anti-Money Laundering and Counter-Terrorism Financing (2025 Rules) Amendment Rules 2026
• Anti-Money Laundering and Counter-Terrorism Financing (Class Exemptions and Other Matters) Amendment Rules 2026.

You can also read the explanatory statement for more information.

Over the coming weeks we will also update the guidance on our website to reflect these changes to the Rules. You can stay up to date on the latest guidance updates page.