Australia is set to implement the most comprehensive reform of its anti-money laundering and counter-terrorism financing (AML/CTF) framework in a generation, with changes that will significantly expand regulatory oversight and shift the country’s entire approach to tackling financial crime.
The reforms, mentioned by Australia’s financial watchdog AUSTRAC CEO Brendan Thomas during the ACAMS Conference at The Assembly Australasia 2025, will expand AUSTRAC’s regulatory coverage from under 18,000 businesses to around 100,000, as so-called ‘tranche 2‘ entities — including real estate agents, lawyers, and accountants — are brought into the compliance regime.
“This is a momentous time for AML/CTF regulation,” said Thomas. “We’re about to embark on the most ambitious overhaul of Australia’s anti-money laundering laws in a generation… These reforms will enable us to be more effective in the fight against financial crime and the harm it causes Australia.”
Thomas mentioned that serious and organized crime is estimated to cost the country more than AU$68 billion ($42.2 billion) annually. AUSTRAC will now prioritize risks that span entire industries, with intervention strategies tailored for sector-specific threats. “We are shifting our regulatory approach from just looking at compliance to focus on outcomes and… the harms resulting from businesses failing to manage money laundering risks,” Thomas stated.
One example of the new strategy in action is AUSTRAC’s cryptocurrency Taskforce, established to oversee the growing number of crypto ATMs — which surged from 23 in 2019 to over 1,800 in 2025. The Taskforce uncovered that up to one in ten transactions may be linked to illicit activity, often involving victims over the age of 60. As a result, AUSTRAC has imposed stricter controls, including a AU$5,000 ($3,100) cash deposit limit and enhanced due diligence requirements.
AUSTRAC is also extending its focus to previously unregulated areas such as privately managed ATMs and cash-in-transit services. A recent investigation aided by AUSTRAC intelligence led to the arrest of four individuals involved in a AU$190 million ($118 million) laundering scheme using a security firm’s armored transport unit.
Collaboration remains central to AUSTRAC’s strategy. The agency’s Fintel Alliance — a partnership with major banks, digital currency exchanges, gambling operators, and law enforcement — will be expanded. Its new Collaborative Analytics Hub, used in a recent operation to analyze 50 million cash deposit data points, revealed criminal networks that are now facing enforcement actions.
AUSTRAC is also working with industry to co-develop the detailed ‘Rules’ accompanying the legislative reforms. These are expected to be finalized by August, ahead of the staged enforcement dates: March 31st, 2026, for tranche 1 entities and July 1st, 2026, for tranche 2.
“AML is a practice,” said Thomas. “We won’t be throwing the book at businesses who are trying to follow the law… But if a business is wilflully ignoring its obligation to enroll, they will be the focus of our enforcement efforts.”
As the pace and sophistication of financial crime accelerates — with criminals leveraging AI and online platforms — AUSTRAC’s evolution is aimed at ensuring Australia’s financial system remains resilient and secure.
“These historic reforms will help us close a number of gaps that organised crime is out to exploit,” Thomas concluded. “Together, we can deliver meaningful reform that will stamp out illegal activity and protect the Australian community from the harm it causes.”
