AUSTRAC’s 2026 AML/CTF Changes: Why Compliance Can’t Wait.

On 30 August 2025, AUSTRAC released the final amendments to the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Rules*.

From 31 March 2026, banks, superannuation funds, and life insurers are required to comply with the new regulations. Just a few months later, from 1 July 2026, the net widens to include “Tranche 2” entities, such as real estate agents, lawyers, and accountants*.

While there is still time for affected entities to make the required changes, AUSTRAC has made it clear that progress must be visible well before the deadline*.

What’s Changing?

The reforms go beyond technical tweaks. They reshape how reporting entities approach risk, customer information, and transaction monitoring. Key changes include:

  • Expanded Definitions – virtual assets now cover governance tokens and other digital representations of value.
  • Policy & Program Overhaul – AML/CTF programs must be updated to reflect new obligations.
  • Customer Due Diligence (CDD) – more rigorous checks, ongoing maintenance of information, and enhanced verification.
  • Value Transfer Chain – replaced with a simplified framework that requires payer and payee details for both domestic and international transfers.
  • Independent Reviews – AML/CTF programs must undergo impartial assessment.
  • Stronger Regulator Powers – AUSTRAC can now compel the disclosure of more information and conduct more in-depth examinations.

These rule changes reflect AUSTRAC’s sharper focus on preventing financial crime and protecting Australia’s financial system from misuse ^.

Non-compliance comes with heavy costs:

  • Regulatory penalties can amount to millions.
  • Reputational damage can erode trust with clients, investors, and the public.
  • Operational disruption can occur if systems aren’t ready in time*.

With deadlines set in 2026, organisations need to start now:

  1. Assess existing policies, systems, and processes against the new rules.
  2. Prioritise enhancements to CDD, reporting, and record-keeping.
  3. Plan for an independent program review ahead of the deadline.
  4. Train staff on new obligations to instil a culture of compliance.

AUSTRAC has provided two clear messages: compliance is not optional, and waiting until 2026 to implement the required changes will be too late.  Or, in other words, prepare now.

Written by David Atcheson.

For more information, please feel free to contact info@iqgroup.com.au

 *AUSTRAC – New AML/CTF Rules,  Summary of Changes for Current Reporting Entities
Summary of the reforms and timing of implementation (31 March 2026 / 1 July 2026).
^Department of Home Affairs Website, AUSTRAC, Grant Thornton Australia) Home Affairs / AML/CTF Amendment Act Overview
The Amendment Act (2024) sets out expanded scope, revised definitions, and the legislative basis for the new rules.
^Grant Thornton – Key Changes to Final AML/CTF Rules
Commentary and analysis of the eight structural and operational changes introduced in the final rules.
^Hall & Wilcox / Lexology – Virtual Asset Service Providers & Draft Rules
Detailed insight into how the draft rules treat virtual asset service providers (VASPs), payee/payee obligations, and exposure drafts.