AUSTRAC regulatory expectations for the implementation of the AML/CTF reforms

AUSTRAC's chief executive released a statement of regulatory expectations on 4 July 2025 for businesses implementing the reforms to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, which commenced on 31 March 2026 for existing reporting entities and on 1 July 2026 for newly regulated sectors including legal services, accounting, real estate and dealers in precious metals and stones. The statement acknowledges that the timeframes set by Parliament are tight, reflecting Australia's upcoming mutual evaluation by the Financial Action Taskforce, and sets out what AUSTRAC expects of businesses during implementation.

AUSTRAC said it does not expect perfection from day one but does expect businesses to maintain focus on reducing money laundering, terrorism financing and proliferation financing risks, and to resist implementing programs that create an impression of compliance without genuinely addressing risk. The statement remains the foundational expression of AUSTRAC's supervisory approach for newly regulated sectors, and has since been supplemented by updated regulatory priorities, including a statement of expectations for the 2026 to 2027 financial year released in May 2026, which built on the original July 2025 statement.

The statement does not create new legal obligations beyond those in the AML/CTF Act and its rules, but indicates how AUSTRAC is likely to exercise its supervisory and enforcement discretion, particularly in the period immediately following commencement for newly regulated businesses. It is relevant to any business, including law practices, now subject to AML/CTF obligations and assessing how much weight to give early stage implementation gaps.