Anti-money laundering regulation tranche 2 update

The Attorney-General has announced the second stage of consultation on reforming Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime. Background.

The proposed reforms extend the existing AML/CTF legislation to certain high-risk services, also known as tranche 2 services. This includes services provided by lawyers, accountants, trust and company service providers, real estate agents, and dealers in precious metals and stones. (Papers 1, 2 and 3)

The reforms also modernise digital currency and payments technology-related regulation (Paper 4), and simplify, clarify and modernise the AML/CTF regime (Paper 5)

The Consultation is split into an overview and 5 subject papers:

  • Paper 1: Further information for real estate professionals
  • Paper 2: Further information for professional service providers
  • Paper 3: Further information for dealers in precious metals and stones
  • Paper 4: Further information for digital currency exchange providers (DCEPs), remittance service providers and financial institutions
  • Paper 5: Broader reforms to simplify, clarify and modernise the regime (which will apply to current and new proposed reporting entities).

Paper 4 presents options for expanding the range of digital currency-related services that are regulated and streamlining the framework for regulating transfers of value across borders. It also details proposed approaches to improving and expanding the ‘travel rule’, as well as simplifying reporting obligations on international funds transfer instructions (IFTIs). These obligations relate to transactions conducted by the financial sector.

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David Jacobson

Author: David Jacobson
Principal, Bright Corporate Law
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.

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