Second Consultation Released into Simplifying and Modernising the AML/CTF Regime

The Commonwealth Attorney-General’s Department (Department) has today (2 May) released the Second Consultation Paper (Consultation) on  the implementation of proposed reforms to bring Australia's anti-money laundering and counter-terrorism financing laws in line with standards recommended by the Financial Action Task Force (FATF).  These will be the most significant reforms to the AML/CTF Act since its introduction. 

Building on the First Consultation Paper released in April 2023, these reforms have potentially far-reaching implications for “Tranche 2 entities” including:

• real estate professionals,
• professional service providers such as lawyers and accountants, and
• dealers in precious metals and stones,

who will be required to take a more active role in deterring money laundering and terrorist financing.  Feedback on the First Consultation released by the Department is available here. 

The Consultation released today sets out long awaited proposed changes to the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime, which is likely to result in a new bill introduced to Parliament this year to amend the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AML/CTF Act).

The Consultation includes five specific papers, namely:

• Paper 1: Further information for real estate professionals
• Paper 2: Further information for professional service providers
• Paper 3: Further information for dealers in precious metals and precious stones
• Paper 4: Further information for digital currency exchange providers (DCEPs), remittance service providers and financial institutions
• Paper 5: Broader reforms to simplify, clarify and modernise the regime (which will apply to current and new proposed reporting entities)

Papers 1-3 deal with the proposed new reporting entities. Papers 4 and 5 deal with proposed changes that will impact new and existing reporting entities.

The Department’s aim in amending Australia’s AML/CTF regime is to ensure it continues to effectively deter, detect and disrupt money laundering and terrorism financing, and meet international standards set by the FATF. The Second Consultation paper states that the reforms aim to significantly improve Australia’s ability to target illicit financing.

Engagement with the Consultation presents an important opportunity to contribute to the proposed scope and changes to the AML/CTF Act. Submissions on the proposals raised in the Consultation paper close on 13 June 2024.

To stay up to date with Consultation and receive insights into each of the Papers above, subscribe to our dedicated hub.  Further updates will be published shortly.  If you have any queries in the meantime, contact us.