AUSTRAC has published a revised version of new Anti-Money Laundering and Counter-Terrorism Financing Rules (ED2 AML/CTF Rules) for further feedback following the first round of consultation. They will apply to the amended AML/CTF Act from 31 March 2026 (for existing reporting entities) and 1 July 2026 (for entities that only provide “tranche 2” designated services).

The ED2 AML/CTF Rules contains updates to the following areas:

• AML/CTF programs;
• reporting groups;
• customer due diligence, including allowing delayed initial customer due diligence in a wider range of circumstances;
• correspondent banking;
• the travel rule: the requirement for information about the payer and payee to be
  included with telegraphic transfers, remittances, transfers of virtual assets and other value
  transfers;
•  cross-border movement reports and compliance reporting;
• keep open notices (formerly ‘Chapter 75 notices’);
• disclosure of AUSTRAC information to foreign counterparts;
• reportable details for ‘suspicious matter reports’ required to be given to AUSTRAC by
  reporting entities under section 41 of the Amended AML/CTF Act;
• reportable details for ‘threshold transaction reports’ required to be given to AUSTRAC under
  section 43 of the Amended AML/CTF Act;
• enrolment applications for all reporting entities;
• registration application and administrative decision making processes for ‘remittance service
  providers’ and ‘virtual asset service providers’.

Austrac has also provided an exposure draft explanatory statement with notes on clauses to assist interpreting the new AML/CTF Rules, to understand how the amended AML/CTF Act and Rules interact and to gain insight into AUSTRAC’s policy intent.

Austrac has separately released an exposure draft of amendments to current rules-based exemptions which will be retained, called the AML/CTF Rules (Class exemptions and other matters) 2007.

The Department of Home Affairs intends to develop transitional rules which will extend the operation of the current international funds transfer instruction (IFTI) reporting requirements until after 2026 to enable AUSTRAC and industry to undertake consultative development of reportable details for the new international value transfer service reporting requirements.

If you found this article helpful, then subscribe to our news emails to keep up to date and look at our video courses for in-depth training. Use the search box at the top right of this page or the categories list on the right hand side of this page to check for other articles on the same or related matters.

Author: David Jacobson
Principal, Bright Corporate Law
Email:
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.