Purpose of the AML/CTF Regime
Anti-money laundering and counter-terrorism financing (AML/CTF) legislation is designed to protect Australia's financial system and national security. It aims to prevent criminals from using the legal profession and other sectors to launder the proceeds of crime or finance terrorist activities. These laws are also crucial for meeting Australia's international obligations and maintaining its reputation in the global financial system. The legislation recognises that certain professions, including legal practitioners, can be vulnerable to exploitation by those seeking to conceal illicit funds.
Administration of the AML/CTF Act
The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 is currently administered by the Department of Home Affairs, following a transfer of responsibility from the Federal Attorney-General’s Department.
The Department of Home Affairs is now progressing reforms to strengthen the AML/CTF regime, ensuring it is fit-for-purpose, responds to the evolving threat environment, and meets international standards set by the Financial Action Task Force (FATF) — the global financial crime watchdog and standard-setter. If Australia falls behind these standards, it risks being "grey listed" by the FATF, which could result in increased monitoring and economic consequences.
Legislative Changes Affecting the Legal Profession
The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth) passed Parliament on 29 November 2024 and extends the AML/CTF regime to the legal profession. The act is now in force. The new obligations are scheduled to commence on 1 July 2026.
On 29 August 2025, the new Anti-Money Laundering and Counter-Terrorism Financing Rules 2025 (the Rules) were tabled in Parliament and are now in force.
Current Status of the AML/CTF Act
The most recent authorised compilation of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) is current as of 4 June 2026.
Please note that the Schedule 9 powers are now operational. Importantly, the investigation and (amended) notice provisions in sections 49, 49B and 172A. Those provisions can be applied to any person, not just a ‘reporting entity’.