AML/CTF Amendment Bill 2026: What may change and the implication for reporting entities

The amendments are a response to concerns about cryptocurrency being used for money laundering, scams, and money‑mule activity, as organised crime groups with transnational reach exploit new technologies to generate illicit profits and launder proceeds. 

The risks are heightened by Australia’s significant increase in the number of cryptocurrency ATMs, ranking third globally, with installations rising from 23 machines in 2019 to approximately 2,000 today. AUSTRAC estimates that almost 150,000 transactions totalling over $275m occur annually using crypto ATMs, with about 99 per cent of the transactions being cash deposits for the purchase of cryptocurrencies. 

The Bill provides for the following regulatory changes: 

• Provide the AUSTRAC CEO with new powers to regulate the use of high-risk mechanisms by reporting entities to provide designated services such as a crypto ATM. 
• In most cases, require the AUSTRAC CEO to consult for at least 30 days before making the legislative instrument. 
• Allow the AUSTRAC CEO to impose restrictions that are in the public interest, such as the volume or value of funds remitted, virtual assets exchanged or physical currency or property transferred; the method of remittance, exchange or transfer; and the destination of the remittance, exchange or transfer. 

The Bill also proposes technical amendments to the AML/CTF Act to address issues that have emerged since the enactment of the AML/CTF Amendment Act.  

Key amendments include: 

• not requiring a reporting entity to establish whether any person acting on behalf of the customer is a politically exposed person before providing a designated service 
• limiting KYC refresh to instances where there are reasonable grounds for the reporting entity to doubt the adequacy or veracity of the KYC information 
• new definitions for an Australian politically exposed person and non-Australian politically exposed person 
• amending the AML/CTF Act to provide that legal professional privilege forms must be given to the agency that issued the notice, rather than the AUSTRAC CEO. 

The Bill has been referred to the Parliamentary Joint Committee on Intelligence and Security, which is seeking written submissions by 8 May 2026. 

Looking ahead 

It is essential for organisations operating in regulated industries to closely monitor proposed amendments and respond appropriately to any subsequent changes in the AML/CTF framework as they arise. Please reach out to one of our AML experts today if you wish to discuss your situation further. 

*AML/CTF Amendment Bill 2026

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