Australis’s Attorney‑General’s Department (the Department), resposible for AML/CTF Act, has commenced consultation on proposed reforms to Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime. Latest Consultation has two pars –

Part 1 of the Consultation Paper proposes reforms that will simplify and modernise the operation of the regime. The need to streamline obligations has long been called for by industry and was recommended by the 2016 Report on the Statutory Review of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (the 2016 Statutory Review). The 2016 Statutory Review found that the regime is overly complex and impedes the ability of regulated entities to understand and comply with their AML/CTF obligations. In particular, the scale, structure and density of the Rules was considered to be a significant issue, rendering them hard to follow and largely inaccessible, particularly for small business. The feedback from industry indicated that there is a pressing need to simplify the Act and Rules, and streamline AML/CTF obligations.

Part 2 of the Consultation Paper proposes extending the AML/CTF regime to certain high-risk professions, including lawyers, accountants, trust and company service providers, real estate agents and dealers in precious metals and stones (also known as tranche-two entities). Out of more than 200 jurisdictions, Australia is now one of only five, alongside China, Haiti, Madagascar and the United States, that do not regulate tranche-two entities.[1]

[1] Financial Action Task Force, ‘Consolidate table of assessment ratings’, Consolidated assessment ratings (Web Page, 3 April 2023) https://www.fatf-gafi.org/en/publications/Mutualevaluations/Assessment-ratings.html.