The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth)
The Act creates the concept of a designated service, makes the businesses that provide one reporting entities, and sets out their obligations: enrolment, an AML/CTF program, customer due diligence, reporting, record keeping. It also establishes AUSTRAC's powers and the civil penalty regime. It replaced the narrower Financial Transaction Reports Act 1988 for most purposes.
The AML/CTF Rules
The Rules are a legislative instrument made by the AUSTRAC CEO that fill in the detail: what identification is acceptable, how programs must be structured, what a report must contain. The Rules were rewritten for the reformed regime; the current set applies from 31 March 2026 and is the document most compliance questions actually turn on.
The AML/CTF Amendment Act 2024
Passed by Parliament in late 2024, the Amendment Act does three things: it extends the regime to Tranche 2 sectors from 1 July 2026; it simplifies and modernises obligations for existing reporting entities from 31 March 2026, including a new structure for programs and a reformed tipping-off offence; and it brings virtual asset service providers fully within the regime. It responds to years of FATF criticism that Australia had left lawyers, accountants and real estate out of its laws.
Penalties
- Civil penalties: up to 100,000 penalty units for a body corporate and 20,000 for an individual per contravention. At the current value of a penalty unit that is in the tens of millions of dollars for a company.
- Enforceable undertakings, remedial directions and infringement notices for lesser breaches.
- Criminal offences for tipping off and for certain deliberate failures.
- Enforcement to date has targeted large institutions: Commonwealth Bank (AU$700 million, 2018), Westpac (AU$1.3 billion, 2020), Crown Resorts (AU$450 million, 2023) and SkyCity (AU$67 million, 2024).
Where to read the primary sources
The Act and the Rules are on the Federal Register of Legislation (legislation.gov.au). AUSTRAC publishes guidance, including sector-specific guides for each Tranche 2 profession, on austrac.gov.au. When this guide and the primary source differ, the primary source wins.
Questions people ask
- When did the AML/CTF Act commence?
- The Act received royal assent in December 2006 and its obligations were phased in over 2007 and 2008 for the financial sector, remitters, casinos and bullion dealers.
- Are the AML/CTF Rules law?
- Yes. They are a legislative instrument made under the Act and are binding on reporting entities.
- Do state laws also apply?
- State laws regulate the professions (legal practice, real estate licensing, trust accounts). The AML/CTF Act is federal and applies on top of them.
General information about Australian AML/CTF law, not legal advice. The Act, the Rules and AUSTRAC's guidance are the primary sources.