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Australia has commenced reforming its Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF) regime to further align it with the international standards recommended by the Financial Action Task Force (FATF).
These reforms seek to minimise the risk of Australia being grey listed by FATF at the next mutual evaluation in late 2026. The outcome of the FATF evaluation may impact a country's reputation and its ability to continue international trade and economic strength while maintaining global competition and equality.
The updated AML/CTF legislation passed in November 2024 also include the ‘Tranche 2’ reforms, which expand AML/CTF compliance to apply to additional professions including lawyers, accountants, real estate agents, property developers, and precious stone dealers. Existing reporting entities who provide ‘designated services’ are also subject to significant changes under the new AML legislation including financial institutions.
Boards and governing bodies are required to undertake important duties aligned to those under section 180 of the Corporations act ensuring existing reporting entities and new entrants understand and manage their Money Laundering and Terrorism Financing (ML/TF) risk; oversight of the completion of an entity's risk assessment and compliance with their AML/CTF obligations. This includes making sure the company has the appropriate resourcing including budget and people to ensure the effectiveness of the compliance function; and the governing body must keep up to date as things continue to evolve.
Neil Jeans, Partner – Risk Consulting at Grant Thornton said, “The 2024 AML Amendment Act represents a once-in-a-generation change since the original 2006 AML Act. It aims to protect the Australian economy from criminal exploitation, such as money laundering from child exploitation, drug trafficking, scams, and financial fraud. As the criminal landscape becomes more sophisticated, so must our AML laws. It’s critical Boards and those governing businesses covered by the new AML regime ask the right questions to safeguard their businesses and where there is a skills gap at that level, they should be seeking expert advice to avoid unwanted threats.
“This new AML legislation formalises what AUSTRAC expects of Australian Boards and governing bodies to set the tone at the top regarding duties of care and diligence. A good culture of compliance will filter down into senior management and then further into the organisation. If Boards can establish their AML program effectively from the start, then meeting the new mandated obligations will become simpler, reducing the risk of being targeted by criminals,” Neil Jeans continued.
Grant Thornton has identified the following five questions Boards and those charged with governing a business should ask when considering their AML/CTF program and risk when considering are they getting ready:
For more information about these unprecedented changes to the Anti-Money Laundering Reforms, please visit the Grant Thornton AML/CTF hub online.
Press release
Five questions boards should ask about new Anti-Money Laundering laws
01 Apr 2025
Australia has commenced reforming its Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF) regime to further align it with the international standards recommended by the Financial Action Task Force (FATF).
These reforms seek to minimise the risk of Australia being grey listed by FATF at the next mutual evaluation in late 2026. The outcome of the FATF evaluation may impact a country's reputation and its ability to continue international trade and economic strength while maintaining global competition and equality.
The updated AML/CTF legislation passed in November 2024 also include the ‘Tranche 2’ reforms, which expand AML/CTF compliance to apply to additional professions including lawyers, accountants, real estate agents, property developers, and precious stone dealers. Existing reporting entities who provide ‘designated services’ are also subject to significant changes under the new AML legislation including financial institutions.
Boards and governing bodies are required to undertake important duties aligned to those under section 180 of the Corporations act ensuring existing reporting entities and new entrants understand and manage their Money Laundering and Terrorism Financing (ML/TF) risk; oversight of the completion of an entity's risk assessment and compliance with their AML/CTF obligations. This includes making sure the company has the appropriate resourcing including budget and people to ensure the effectiveness of the compliance function; and the governing body must keep up to date as things continue to evolve.
Neil Jeans, Partner – Risk Consulting at Grant Thornton said, “The 2024 AML Amendment Act represents a once-in-a-generation change since the original 2006 AML Act. It aims to protect the Australian economy from criminal exploitation, such as money laundering from child exploitation, drug trafficking, scams, and financial fraud. As the criminal landscape becomes more sophisticated, so must our AML laws. It’s critical Boards and those governing businesses covered by the new AML regime ask the right questions to safeguard their businesses and where there is a skills gap at that level, they should be seeking expert advice to avoid unwanted threats.
“This new AML legislation formalises what AUSTRAC expects of Australian Boards and governing bodies to set the tone at the top regarding duties of care and diligence. A good culture of compliance will filter down into senior management and then further into the organisation. If Boards can establish their AML program effectively from the start, then meeting the new mandated obligations will become simpler, reducing the risk of being targeted by criminals,” Neil Jeans continued.
Grant Thornton has identified the following five questions Boards and those charged with governing a business should ask when considering their AML/CTF program and risk when considering are they getting ready:
For more information about these unprecedented changes to the Anti-Money Laundering Reforms, please visit the Grant Thornton AML/CTF hub online.
Experts / Authors
Ailish Parr
Communications Manager at Grant Thornton Australia
