Australia Strengthens AML/CTF Framework with Amendment Bill 2024

On November 29, 2024, The Australian parliament approved the “Anti-Money Laundering & Counter-Terrorism Financing (AML/CTF) Amendment Bill 2024” — to strengthen its AML/CTF regime.

The legislation’s primary goal is to reduce the regulatory burden on businesses especially DNFBPs by clarifying their obligations and ensuring that the framework remains fit for purpose.

On September 11, 2024, the Attorney-General introduced the AML/CTF Amendment Bill 2024 to strengthen the nation’s defense against financial crime and emerging threats like “organized crime, terrorism financing, and money laundering”.

The bill had 3 key objectives when the attorney introduced them in parliament, including:

• Extending AML/CTF framework to cover high risk in DNFBP’s sector, also called “Tranche 2” entities.
• Transform the regulation of VASP technology.
• Clarify & simplify frameworks to improve flexibility & reduce regulatory impact.

However, the bill doesn’t shed light on modernizing VASP’s technology. Instead, today’s bill focuses on:

• Improve the effectiveness of the AML/CTF framework by making it easier for businesses to comply with their obligations.
• A modernized framework has to reflect dynamic business structures, illegal financing methodologies & technologies.
• Expand AML/CTF to include high-risk services provided by accountants, lawyers, real estate professionals, trust and company service providers, and dealers in precious metals and stones such as Tranche 2.

He also added that this bill would strengthen Australia’s integrity, secure the country from financial crimes & improve compliance.

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The Financial Transaction Reports Act 1988 (FTR Act)

FTR act will be canceled within 28 days once the AML/CTF bill receives Royal Assent, as stated in a press release. 

The FTR Act mainly impacts auto dealers and solicitors who serve as insurance middlemen or insurers. When the FTR Act is abolished, the reporting requirements that these companies had under the Act would cease.

The AML/CTF Act and ‘other obligations’ remain unaffected by the repeal. These ‘other obligations’ stay in effect.

Expand AML/CTF Framework to Avoid High-Risk in Tranche 2 Entities

The Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Amendment Bill 2024 focuses on reducing the misuse of DNFBP’s high-risk sectors, including “real estate agents, precious stone dealers, lawyers, accountants, & company service providers,”  for illicit activities.

Until now, foreign buyers could buy luxury items and properties without disclosing their identity or the origin of their funds.

Australia’s Australia’s 2024 money laundering risk assessment highlights the ongoing “exploitation of high-value assets” and the role of professionals in facilitating complex structures to launder funds and conceal wealth.