Second stage consultation on reforming Australia’s AML/CTF regime is now open

On 2 May the Attorney-General announced the second stage consultation on reforming Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime. This stage includes the Attorney-General’s Department (the Department) releasing consultation papers, which outline a series of detailed proposals for reforming the AML/CTF regime. These papers were developed following feedback from the first round of consultation, which ran from April to June 2023.

The Department is seeking your feedback on the proposed reforms by 5:00 pm AEST Thursday 13 June 2024. View the papers on the Department’s website.

The Australian Government is committed to protecting Australians and preventing criminal abuse of our financial system. This includes efforts to ensure Australia’s AML/CTF regime continues to effectively deter, detect and disrupt money laundering and terrorism financing, responds to the constantly evolving threat environment and meets international standards.

Summary of the proposed reforms

The proposed reforms extend the existing AML/CTF legislation to certain high-risk services, also known as tranche 2 services. This includes services provided by lawyers, accountants, trust and company service providers, real estate agents, and dealers in precious metals and stones.

The reforms also aim to:

  • simplify and modernise the regime in line with international standards and best practice
  • reduce complexity and regulatory burden on industry
  • make sure the regime responds to the constantly evolving threat environment
  • harden Australian businesses and sectors against exploitation by serious organised criminals.

Key themes from submissions so far

The first round of consultation identified broad support for the reforms, and submissions reflected the diversity in the affected sectors. Overall, stakeholders supported the proposed reforms to clarify AML/CTF obligations and remove ambiguity from the current provisions. Current reporting entities supported changes to simplify customer due diligence obligations and AML/CTF program requirements in particular. Visit the Department’s website to see submissions from the first round of consultation.

How you can get involved

The Department seeks views from all stakeholders, including both current and proposed new reporting entities.

Your insights into how the regime works for you in practice are valuable. Your feedback on the merits of the proposals, including their practical impact, will help shape the reforms.

You are invited to make a submission to the Department by 5:00 pm AEST Thursday 13 June 2024.

To make a submission and find out more about the reforms and the consultation process, visit the Department’s website.