AML/CTF Amendment Bill receives Royal Assent

On 29 November 2024, the Federal Parliament passed the AML/CTF Amendment Bill 2024. For the most part, the changes do not take effect until March 2026. Changes of note include:

ML/TF/PF risk assessment: Reporting entities are now required to have an overarching written risk assessment which identifies and assesses the risks of money laundering terrorism financing and proliferation financing your business may reasonably face in providing its designated services. The risk assessment needs to be specific and comprehensive.

AML/CTF policies: Businesses must develop and maintain policies, procedures, systems and controls that appropriately manage and mitigate your business’ risks.

Conduct customer due diligence: The information you collect and verify to complete CDD will now depend on the ML/TF/PF risk profile of the customer, with enhanced CDD being applied in higher risk scenarios and simplified CDD being available in low risk scenarios.

Tipping-off offence: Reporting entities are currently prohibited from sharing any information about suspicious matters to anyone, other than to AUSTRAC. The prohibition is reframed as a prohibition on disclosing or sharing relevant information where that action could reasonably prejudice an investigation.

DBG: A DBG has been replaced with a reporting group. Entities in a reporting group share some or all risk management and compliance arrangements including those set out in a group AML/CTF program established by a lead entity of the group. The reporting group concept is currently being finalised through changes to the AML/CTF Rules.

Program Review: AML/CTF programs must be independently evaluated at least once every 3 years.