AML/CTF Bill

Written By giulia dondoli

On 29 November, the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 (AML/CTF Bill) passed both houses – the Senate and the House of Representatives. Once the AML/CTF Bill obtains Royal Assent, it will become law and it will amend the AML/CTF Act 2006.  

The AML/CTF Bill aims to:

  • expands the AML/CTF regime to certain high-risk services provided by lawyers, accountants, real estate agents and others.

  • improves the effectiveness of the AML/CTF regime by making it simpler and clearer for businesses to comply.

  • modernises the regime to reflect changing business structures, technologies and illicit financing methodologies.

This post highlights some key amendments that will be relevant to you and your business.

Risk Assessment

The AML/CTF Bill establishes a clear, rather than an implicit, requirement for you to conduct a risk assessment.  For the risk assessment, you will need to consider risks relating to money laundering, terrorism financing and proliferation financing (ML/TF/PF), in particular relating to:

  • nature, size and complexity of your business;

  • kinds of designated services provided;

  • kinds of customers;

  • delivery channels;

  • jurisdictional exposure; and

  • information communicated either directly or indirectly by AUSTRAC.

You will need to document your risk assessment in writing.

AML/CTF Policies

Once assessed your risks, you must develop and maintain policies, procedures, systems and controls (AML/CTF policies). These AML/CTF policies should be documented in writing and they should appropriately manage and mitigate your ML/TF/PF risks.

Your AML/CTF policies and your risk assessment will form your AML/CTF program, which substitutes the current ‘Part A’ and ‘Part B’.

Governance

Currently, the requirement for an AML/CTF compliance officer is in the AML/CTF Rule. The AML/CTF Bill includes an explicit requirement for you to establish the role of AML/CTF compliance officer, who must:

  • be a person employed or otherwise engaged by you at a management level;

  • have sufficient authority, independence and access to resources and information to ensure they can perform the functions of an AML/CTF compliance officer effectively;

  • reside in Australia (if you provide your services through a permanent establishment in Australia); and

  • be a fit and proper person.

‘Tipping Off’

It is currently an offence under the AML/CTF Act for reporting entities to disclose information about a suspicious matter report, to anyone other than AUSTRAC. The AML/CTF Bill clarifies to whom can a tipping off offence apply, i.e., a reporting entity, an employee or agent of a reporting entity, a member of a reporting group, an employee or agent of a member of a reporting group and a person required by notice to provide information.

Moreover, the AML/CTF Bill specifies that the tipping off offence applies to a person who “is or has been” engaged in any of those capacities. This captures a person who has ceased employment with the relevant entity and makes the prohibition of disclosure of relevant AML/CTF information enduring.

What’s Next

These changes will enter into force in 2026 and AUSTRAC is working to develop updated AML/CTF Rules based on the AML/CTF Bill.

Don’t wait until 2026 to start making changes. Assess your business’s current AML/CTF framework and identify gaps now. Contact us today for expert assistance with risk assessments, AML/CTF policies, and training to ensure your business is ready for the new requirements.

 

giulia dondoli
Previous

AML/CTF Bill
Next

Risk Assessment