AUSTRAC has released an updated statement outlining its expectations for regulated businesses as Australia progresses toward significant changes to the Anti Money Laundering and Counter Terrorism Financing regime, due to take effect on 31 March 2026.
The agency said its approach recognises regulated entities as partners in reducing harm and emphasised that most businesses aim to comply and contribute to national efforts against financially enabled crime.
The reforms will require substantial adjustments to systems, processes and controls across large parts of the regulated sector. AUSTRAC said it would continue to support businesses through guidance and industry engagement, although it acknowledged that many entities may be unable to meet all new requirements in the mandated timeframe.
The regulator stressed that managing money laundering and terrorism financing risks remains central to the regime. All existing entities are expected to complete effective risk assessments and ensure their AML and CTF programmes continue to identify, mitigate and manage threats. Reporting suspicious matters and transactions in a timely manner remains a core obligation.
From 31 March 2026, businesses that cannot immediately meet new or changed obligations will be expected to maintain a documented implementation plan. AUSTRAC said such plans must identify gaps, outline timelines, assign accountability and describe how risks will be managed during the transition period. Plans should also be endorsed by senior management and provided to boards.
Implementation plans will influence AUSTRACs regulatory decisions in 2026, including assessments of whether businesses have exercised due care and diligence. The agency said it would take a proportionate and pragmatic approach but warned that failures to manage ML and TF risks could still result in enforcement action.
AUSTRAC also advised new entrants planning to commence operations before the reforms begin to design systems aligned with the new requirements from the outset to avoid duplicated work and unnecessary risk.
AUSTRAC warned that businesses with weak systems or persistent failures to meet core obligations may face regulatory action, including civil penalties or the suspension of registration
