The Legal Light Justin Stack Get ready for new anti-money laundering and counter-terrorism financing laws Deadlines are fast approaching for businesses to make compulsory changes to comply with new legislative amendments broadening the reach of laws fighting money laundering and covert financing of terrorism. Reforms to the Anti-Money Laundering and Counter- Terrorism Financing Act 2006 (AML/CTF Act for short) start on 31 March 2026 for what are called "tranche 1 entities" which perform financial transactions, such as banks, casinos, financial institutions and remittance service providers. These entities are already required to report suspicious activities. Newly covered by the amended Act are "tranche 2 entities", such as legal and accounting practices, trust and company service providers, real estate professionals, and dealers in jewels and precious metals. These must enact changes to comply by 1 July 2026. The AML/CTF Act regulates the financial, gambling, remittance, digital currency exchange and bullion sectors, which provide designated services listed in the Act. It is regulated and policed by the Australian Transaction Reports and Analysis Centre, AUSTRAC. Money laundering is the process of hiding the origin of illicit funds gleaned through crime, so they appear to come from a legitimate source. Organised crime is estimated to cost Australia up to $60 billion a year, mostly through money laundering. Business lawyer Geoff Baldwin at Stacks Law Firm warns the changes require stricter financial arrangements for businesses included in the expanded Act, such as law firms, real estate agencies and jewellers. "Most legal and real estate practices already meet some AML/CTF requirements, such as checks identifying clients and awareness of ways to spot suspicious transactions," Mr Baldwin said. "Money launderers are particularly attracted to places where there are transfers of large amounts of money, such as property transactions and sales of businesses. "Having an effective AML/CTF program supplied by AUSTRAC should help practices meet new legal obligations, avoid being misused for financial crime, and make defensible decisions about clients and transactions." By 1 July 2026, tranche 2 entities must be enrolled with AUSTRAC, have an AML/CTF program and compliance officer, train staff on the requirements, and be ready to engage with clients and report suspicious activities. Enrolment with AUSTRAC opens on 31 March. AUSTRAC offers starter kits to help businesses prepare for the new regulations. It would be wise to consult a legal expert to make sure your business complies with the new laws, as penalties for not complying can be severe. Maximum penalties per breach are $6.6 million for an individual or $33 million for a corporation. AUSTRAC has already won cases against casinos and banks for failing to comply, including Crown Casino, which was fined $450 million, Westpac $1.3 billion and Commonwealth Bank $700 million. STACKS LAW FIRM Justin Stack Compensation Specialist No Win, No Fee Conditions apply 02 6592 6592 taree.stacklaw.com.au Partners in life The Legal Light Justin Stack Get ready for new anti - money laundering and counter - terrorism financing laws Deadlines are fast approaching for businesses to make compulsory changes to comply with new legislative amendments broadening the reach of laws fighting money laundering and covert financing of terrorism . Reforms to the Anti - Money Laundering and Counter- Terrorism Financing Act 2006 ( AML / CTF Act for short ) start on 31 March 2026 for what are called " tranche 1 entities " which perform financial transactions , such as banks , casinos , financial institutions and remittance service providers . These entities are already required to report suspicious activities . Newly covered by the amended Act are " tranche 2 entities " , such as legal and accounting practices , trust and company service providers , real estate professionals , and dealers in jewels and precious metals . These must enact changes to comply by 1 July 2026 . The AML / CTF Act regulates the financial , gambling , remittance , digital currency exchange and bullion sectors , which provide designated services listed in the Act . It is regulated and policed by the Australian Transaction Reports and Analysis Centre , AUSTRAC . Money laundering is the process of hiding the origin of illicit funds gleaned through crime , so they appear to come from a legitimate source . Organised crime is estimated to cost Australia up to $ 60 billion a year , mostly through money laundering . Business lawyer Geoff Baldwin at Stacks Law Firm warns the changes require stricter financial arrangements for businesses included in the expanded Act , such as law firms , real estate agencies and jewellers . " Most legal and real estate practices already meet some AML / CTF requirements , such as checks identifying clients and awareness of ways to spot suspicious transactions , " Mr Baldwin said . " Money launderers are particularly attracted to places where there are transfers of large amounts of money , such as property transactions and sales of businesses . " Having an effective AML / CTF program supplied by AUSTRAC should help practices meet new legal obligations , avoid being misused for financial crime , and make defensible decisions about clients and transactions . " By 1 July 2026 , tranche 2 entities must be enrolled with AUSTRAC , have an AML / CTF program and compliance officer , train staff on the requirements , and be ready to engage with clients and report suspicious activities . Enrolment with AUSTRAC opens on 31 March . AUSTRAC offers starter kits to help businesses prepare for the new regulations . It would be wise to consult a legal expert to make sure your business complies with the new laws , as penalties for not complying can be severe . Maximum penalties per breach are $ 6.6 million for an individual or $ 33 million for a corporation . AUSTRAC has already won cases against casinos and banks for failing to comply , including Crown Casino , which was fined $ 450 million , Westpac $ 1.3 billion and Commonwealth Bank $ 700 million . STACKS LAW FIRM Justin Stack Compensation Specialist No Win , No Fee Conditions apply 02 6592 6592 taree.stacklaw.com.au Partners in life