Australia’s anti-money laundering and counter-terrorism financing (AML CTF) framework has undergone its biggest reform in almost two decades. While banks and financial institutions have long been subject to these rules, the latest AML changes expand the regime to include a range of additional professional service providers, including certain accounting, legal, conveyancing and real estate services.
If your business provides designated services, understanding the new AML CTF regulations is essential. Failing to comply could expose your business to significant penalties and regulatory action.
This guide provides an anti-money laundering compliance overview 2026, explaining who is affected, what your obligations are and how you can prepare.
What Is AML CTF?
Anti-Money Laundering and Counter-Terrorism Financing (AML CTF) laws are designed to help prevent criminals from using legitimate businesses to hide illegally obtained money or finance criminal and terrorist activities.
The legislation requires certain businesses to identify their customers, understand the risks associated with the services they provide, monitor suspicious activity and maintain appropriate records.
These AML compliance regulations help protect Australia’s financial system while making it harder for organised crime to exploit professional services.
Why Are The AML CTF Regulations Changing?
The reforms are intended to strengthen Australia’s financial crime framework and align it more closely with international standards.
Historically, Australia’s AML CTF regime focused primarily on financial institutions. However, criminals can also misuse professional services such as company formations, trust structures and property transactions.
To close these gaps, the reforms expand the AML CTF regime to additional industries that provide designated services.
Who Do The New AML CTF Requirements Apply To?
One of the biggest misconceptions surrounding the reforms is that every accountant or lawyer automatically falls under the legislation.
That isn’t the case.
The anti money laundering requirements apply to businesses that provide designated services covered under the AML/CTF Act. Whether your business must comply depends on the services you provide rather than your profession alone.
The reforms commonly affect designated services provided by:
- Accounting practices
- Legal professionals
- Conveyancers
- Real estate professionals
- Dealers in precious metals, precious stones and related products
If you are unsure whether your business provides designated services, it is important to seek professional advice before assuming the legislation does or does not apply.
What Are Your AML CTF Obligations?
If your business provides designated services, you may need to comply with a range of ongoing obligations.
These can include:
- Enrolling with AUSTRAC where required
- Developing and maintaining an AML CTF program
- Conducting customer due diligence and verifying client identities
- Assessing and managing money laundering risks
- Appointing an AML CTF Compliance Officer
- Training employees on their responsibilities
- Keeping appropriate records
- Reporting suspicious matters where required
The exact obligations depend on your business and the services you provide, but having appropriate systems and processes in place is essential.
Practical Steps To Prepare
Even if you are still determining whether the reforms apply to your business, there are practical steps you can take now.
- Review Your Services
Start by identifying whether your business provides any designated services covered under the legislation.
- Review Your Client Onboarding Process
Strong client identification procedures will become increasingly important under the new AML CTF regulations.
- Assess Your Risk
Different businesses face different levels of money laundering risk. Understanding your risk profile will help determine the level of controls required.
- Develop Internal Policies
If your business falls within the legislation, you’ll need documented procedures that explain how your business manages AML CTF risks.
- Train Your Team
Employees need to understand their responsibilities, recognise suspicious activity and follow your internal compliance procedures.
What Happens If You Don’t Comply?
Businesses that fail to meet their AML CTF obligations may face regulatory action, financial penalties and reputational damage.
Beyond avoiding penalties, effective AML CTF compliance demonstrates that your business takes governance, risk management and client integrity seriously.
Having robust systems in place also supports stronger business processes and helps protect your business from fraud and financial crime.
How Solve Accounting Can Help
Understanding Australia’s AML CTF reforms can feel overwhelming, particularly if your business has never been subject to these requirements before.
Our team can help you:
- Understand whether the new legislation may apply to your business
- Review your current business processes
- Identify potential compliance gaps
- Improve your client onboarding procedures
- Work alongside you and other advisers as you prepare for the new obligations
Because every business is different, obtaining advice specific to your circumstances is the best way to ensure you remain compliant.
Unsure Whether The AML CTF Reforms Apply To Your Business?
The new AML CTF requirements won’t affect every business in the same way. Whether you need to comply depends on the services you provide and how your business operates.
If you’re unsure where you stand, we’re happy to help you understand your obligations, identify any compliance risks and discuss the practical steps you may need to take.
Get in touch with our team to discuss your business and whether the new AML CTF requirements apply to you.
FAQs
What is AML CTF?
AML CTF stands for Anti-Money Laundering and Counter-Terrorism Financing. These laws are designed to prevent criminals from using legitimate businesses to disguise illegal funds or finance criminal and terrorist activities.
Who needs to comply with the AML CTF regulations?
The AML CTF regulations apply to businesses that provide designated services under the legislation. This includes certain services provided by accounting firms, lawyers, conveyancers, real estate professionals and dealers in precious metals and stones.
Do all accountants need to comply?
No. The reforms are based on the services your business provides rather than your profession. If your accounting practice provides designated services covered by the legislation, the new obligations may apply.
What is customer due diligence?
Customer due diligence involves identifying and verifying your clients, understanding the nature of your business relationship and assessing the level of money laundering risk before providing designated services.
What are the main AML compliance requirements?
Depending on your business, the AML compliance regulations may require you to:
– Develop an AML CTF program
– Verify client identities
– Train staff
– Appoint a compliance officer
– Keep records
– Report suspicious matters to AUSTRAC where required.
How can Solve Accounting help?
At Solve Accounting, we can help you understand whether the new anti money laundering requirements may apply to your business, review your current processes and work with you to prepare for compliance with the new AML CTF framework.
How can Management Accounting help my business prepare for AML CTF requirements?
Strong financial controls and documented processes are an important part of managing regulatory obligations. Our Management Accounting services help you improve financial oversight, strengthen internal processes and build reporting systems that support better governance as your business grows.
Why are accurate financial records important for AML CTF compliance?
Maintaining accurate financial records makes it easier to monitor transactions, identify unusual activity and demonstrate compliance if required. Our Accounting services help ensure your financial records remain accurate, up to date and ready to support your business’s reporting obligations.
