Australia’s AML/CTF reforms: What businesses need to know before 1 July 2026.
Australia’s anti-money laundering and counter-terrorism financing regime is changing. From 1 July 2026, updated AML/CTF obligations will apply to a wider range of businesses and professional service providers as part of a broader effort to strengthen the country’s financial system and reduce the risk of legitimate businesses being misused for money laundering, terrorism financing and other serious financial crime.
For many businesses, the changes go beyond a routine compliance update. They may affect how clients are onboarded, how transactions are reviewed, how records are maintained and how certain risks are identified and managed.
Why the changes are being introduced
The reforms are part of Australia’s broader effort to close known gaps in its financial system and improve transparency across professional services. The updated regime is designed to help businesses better identify and manage risks, while supporting confidence in Australia’s financial and professional services environment.
Who is affected
The reforms expand AML/CTF obligations to additional service providers, commonly referred to as Tranche 2 entities. The sectors affected include:
- Accounting and advisory
- Legal
- Conveyancing
- Real estate
- Trust and company services
- Financial advisory
- Insolvency and restructuring
The key consideration for most businesses will be whether any of the services they provide fall within the updated framework and what obligations follow from that.
What businesses need to consider
Businesses affected by the reforms are likely to face a range of additional compliance and operational requirements. Depending on the nature of the services provided, these may include:
- Customer due diligence requirements
- Enhanced onboarding and verification processes
- Beneficial ownership checks
- Source of funds enquiries
- Risk assessments and internal controls
- Staff training and compliance procedures
- Record keeping and reporting obligations
For clients, this may result in more detailed onboarding questions or additional information requests as part of normal business processes. While these requirements introduce additional administrative steps, they are intended to support stronger risk management and greater protection for businesses operating in the Australian market.
Why preparation matters
The 1 July 2026 commencement date gives businesses time to prepare, but starting early matters. For many, this is likely to involve more than a policy update. Internal processes, governance frameworks, client onboarding procedures and staff responsibilities may all need to be reviewed.
Early preparation can help reduce disruption, support smoother implementation and ensure clients are managed consistently throughout the transition.
Looking ahead
The 1 July 2026 commencement date gives businesses time to prepare, but the scope of the changes means that early action is worthwhile. Internal processes, governance frameworks, onboarding procedures and staff responsibilities may all need to be reviewed before the reforms take effect.
Businesses that start that process early are better placed to implement the changes smoothly and manage clients consistently through the transition. If you are unsure how the reforms apply to your business or what steps to prioritise, speaking with a compliance or legal adviser is a practical first step.
