AML/CTF Amendment Bill 2024 – new ‘designated services’ explained
“This Bill sends a clear message that Australia is committed to ensuring that its AML/CTF regime can more effectively deter, detect and disrupt money laundering and terrorism financing.” – AUSTRAC
While Parliament has passed The Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Amendment Bill 2024, AUSTRAC has yet to finalise the rules, with the consultation period open until 14 February 2025.
What we do know is that the Act changes how it defines entities within its scope. Rather than listing specific business types, the Act introduces new ‘designated services’. Businesses offering such services are considered to be Tranche 2 entities and subject to the Act. It’s estimated that these changes will bring about 70,000 more entities under the Act’s scope.
Closing the legislative gap
The new measures are intent on addressing gaps in regulation while aligning Australian law with standards set by the Financial Action Task Force.
The newly designated services listed in the Act are most relevant to those in professional services, real estate, or the dealers of precious metals and stones. It acknowledges that it is the various services, not the business, that pose a risk to national security. For example, a real estate agent who brokers transactions will need to comply with the Act. That means putting measures in place to detect and mitigate money laundering, terrorism financing and proliferation financing (ML/TF/PF) risk. A real estate agent who only arranges residential tenancy agreements and manages property will not need to comply.
Industry
Real estate
Dealers in bullion, precious metal and stones
Professional services, including lawyers, accountants, trust and company services providers, consultants and restructuring professionals
Services captured in the Act
Brokering the sale, purchase or transfer of real estate
Buying or selling bullion
Buying or selling precious metals, stones or other product, where the transaction is $10,000 or more
Assisting in the financing, sale, purchase or transfer of real estate, body corporate or legal arrangement
Receiving, holding and controlling (including disbursing) or managing a person’s property
Selling or transferring a shelf company
Helping to create or restructure a body corporate or legal arrangement
Acting as, or arranging for someone to act as, a company director or secretary, power of attorney, a partner in a partnership, a trustee, a nominee shareholder of a body corporate or legal arrangement, or any similar legal position
Providing a registered office address or principal place of business
Not captured in the Act
Tenancy agreements and commercial leasing
Leasehold interests of 20 years or less
Property management
Auctioneer services
Buying or selling precious metals, stones or other products where the transaction is below $10,000
Buying or selling precious metals, stones or other products using payment methods other than physical currency or virtual assets.
Buying or selling precious metals, stones or other products where the transaction is below $10,000
Buying or selling precious metals, stones or other products using payment methods other than physical currency or virtual assets.
Take action now
While we await more specifics, affected businesses should begin taking action now to be ready for the 1 July 2026 change:
- Determine which parts of your business, if any, offer services affected by the new rules.
- Enrol with AUSTRAC (from 31 March, 2026).
- Develop an ML/TF risk assessment and AML/CTF policies, including customer due diligence processes and procedures.
- Appoint an AML/CTF compliance officer to oversee and update these policies.
- Procure technology to ensure customer due diligence.
- Upskill staff in the new procedures.
