AUSTRAC welcomes the passage of the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Amendment Bill 2024 through Parliament. This is a significant milestone and sends a clear message that Australia is committed to ensuring its AML/CTF regime can more effectively deter, detect and disrupt money laundering and terrorism financing.
The bill simplifies, clarifies and modernises the AML/CTF regime to ensure it is fit-for-purpose. It will help industry better understand their obligations and reduce regulatory burden where possible. The bill:
- expands the AML/CTF regime to certain high-risk services provided by lawyers, accountants, trust and company service providers, real estate professionals, and dealers in precious metals and stones - also known as 'tranche 2' entities
- improves the effectiveness of the AML/CTF regime by making it simpler and clearer for businesses to comply with their obligations
- modernises the regime to reflect changing business structures, technologies and illicit financing methodologies.
AUSTRAC CEO Brendan Thomas said the bill will close these gaps and minimise the regulatory burden for currently-regulated businesses. It focuses more directly on achieving the goal of detecting, deterring and disrupting financial crime, and will make it easier for businesses to meet obligations that are better aligned with the increasingly digital, instant nature of our global financial system.
"The measures in the bill will assist industry and AUSTRAC to better identify and mitigate the significant risks of money laundering and terrorism financing, by expanding the regime to regulate high-risk services in new sectors and improve the level of financial intelligence collection," Mr Thomas said.
"The money being laundered is generated from illegal activities that cause up to $60.1 billion in harm to the Australian community, though crimes such as drug trafficking, cybercrime, scams, child exploitation and human trafficking.
"The historic passing of this bill will strengthen the integrity of the regime, enhance our compliance internationally and protect Australians by disrupting financial crime.
"We are committed to working closely with the new industry sectors coming under AUSTRAC supervision, to ensure this new system is effective and focuses on making Australia safer.
"We have already established strong relationships with the industry bodies affected by these changes, and will continue to work in partnership in developing guidance and assistance to ensure this new system is workable and effective.
"We are also committed to working with industry bodies to keep costs to a minimum and to ensure their members are well prepared for the legislation's commencement," he said.
AUSTRAC has been engaging closely with industry on the development of the AML/CTF Rules and AUSTRAC education and guidance, to ensure that current and future reporting entities are aware of and understand their obligations.
This collaborative approach will allow AUSTRAC, with industry representatives, to develop extensive guidance and education products targeted to industry needs.
About AUSTRAC
AUSTRAC (the Australian Transaction Reports and Analysis Centre) is the Australian Government agency responsible for detecting, deterring and disrupting criminal abuse of the financial system to protect the community from serious and organised crime.
Through strong regulation, and enhanced intelligence capabilities, AUSTRAC collects and analyses financial reports and information to generate financial intelligence.
