Australia’s AML/CTF Amendment Bill Targets Virtual Assets and Due Diligence

In a significant move to bolster its fight against financial crime, Australia has introduced the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Amendment Bill 2024 into Parliament. This legislative initiative aims to reshape Australia’s existing AML/CTF framework in alignment with evolving international standards, particularly those established by the Financial Action Task Force (FATF). As the country anticipates its next mutual evaluation by the FATF in 2026, this amendment serves as a proactive measure to enhance anti-money laundering defenses.

The proposed amendments target several vulnerable sectors, extending the AML/CTF regime to include professions like lawyers, accountants, real estate agents, and dealers in precious stones, which are often exploited in criminal activities. The Bill also marks a notable effort to modernize the regulation concerning virtual assets and payment technologies. By introducing a new definition of ‘virtual asset’, the legislation aims to encapsulate emerging asset types such as stablecoins and non-fungible tokens (NFTs), thereby replacing outdated terminology related to ‘digital currency’.

Customer Due Diligence (CDD) is another core focus of the Bill. The government plans to reframe and clarify CDD requirements, emphasizing when enhanced CDD measures must be implemented. This is particularly pivotal for the gaming and gambling sectors, which include casinos, on-course bookmakers, and totalizator agency boards, as well as gaming machine operators. Significantly, the Bill proposes lowering the CDD exemption threshold from AU$10,000 to AU$5,000, aligning with New South Wales and Queensland’s State laws for Electronic Gaming Machine (EGM) payouts and FATF recommendations.

Implementation of these initiatives is slated for March 31, 2026, with some financial sector changes postponed to July 1, 2026. AUSTRAC’s powers will also be expanded to better gather information for enforcement and court proceedings related to AML/CTF cases. Preparing for these changes, the Attorney-General’s Department and AUSTRAC have conducted extensive consultations and over 100 stakeholder meetings, ensuring industry alignment and readiness.

Furthermore, Australia’s shift towards these rigorous compliance measures comes in response to previous infractions by gaming operators such as Star Entertainment and Crown Melbourne, which faced hefty fines due to lapses in anti-money laundering protocols. As these changes come into effect, gaming operators might need to revamp their compliance strategies, potentially incurring increased operational costs.

While the Bill seeks to simplify existing regulations, it emphasizes flexibility and reduced regulatory burdens on businesses, thereby facilitating more effective anti-financial crime measures and enhancing the quality of financial data.

Viviana Chan, with extensive experience in journalism and finance, reports on these developments, highlighting their potential impact on Australia’s financial and gaming sectors. As seen with previous enforcement actions against major gaming entities, the passage of this Bill could prompt significant adjustments within these industries, signaling Australia’s robust stance against financial crime.