Australia's AUSTRAC (Australian Transaction Reports and Analysis Centre) has revealed its most ambitious overhaul of the country's anti-money laundering (AML) and counter-terrorism financing (CTF) framework in over a generation. This extensive reform, set to be fully implemented by July 2026, aims to increase regulatory oversight and address the rising risks associated with emerging financial technologies and industries.
AUSTRAC CEO Brendan Thomas emphasized that the agency is transitioning from a purely compliance-based approach to a model focused on tangible outcomes and harm reduction. This change means that, moving forward, AUSTRAC will intervene at the industry level rather than just addressing individual firms. Thomas explained that the goal is to monitor and manage systemic risks across entire sectors, rather than focusing on isolated cases.
"We are moving to a model where we focus on outcomes and the real-world harms caused by financial crime, not just ticking boxes for compliance," Thomas stated. "Our mission is to make sure that the financial systems remain safe from criminal infiltration."
As part of the reforms, cryptocurrency ATMs—which have seen a dramatic surge in numbers from 23 in 2019 to over 1,800 today—have come under increased scrutiny. AUSTRAC is now imposing a transaction cap of AU$5,000 ($3,350) per transaction for these machines, alongside mandatory scam alerts and customer due diligence measures.
Additionally, cash-in-transit firms are also being targeted for increased regulatory attention. In one high-profile case, AUSTRAC uncovered a $190 million money laundering operation linked to a security company allegedly using cryptocurrency to launder illicit funds. This operation highlights the vulnerabilities within industries dealing with high-value, cash-intensive operations, where illicit activities may be concealed.
In response to the growing sophistication of financial crimes, AUSTRAC is enhancing its data-sharing capabilities. The Fintel Alliance, a collaboration between public and private organizations, has been expanded to facilitate better intelligence gathering and improve operational response to criminal activities. A Collaborative Analytics Hub is being established to allow for more seamless data sharing among financial institutions, law enforcement, and regulatory bodies.
The Alliance’s efforts have already proven successful. One such initiative involved collaborating with Australia’s four largest banks, where shared data on cash deposit transactions helped identify patterns indicative of money laundering, leading to law enforcement action against criminal networks.
The overhaul will see nearly 100,000 businesses brought under AUSTRAC’s regulatory framework by 2026. Tranche 2 businesses will be required to enroll with AUSTRAC, implement AML programs, and train their staff to handle suspicious activity reports by July 2026. Tranche 1 businesses, which include larger firms, will have until March 2026 to align their operations with the new standards.
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The reforms come in response to the evolving landscape of digital financial services. The rise of online financial services, cryptocurrency platforms, and agent-based financial services has increased the need for more adaptive, real-time regulatory frameworks. AUSTRAC’s reforms seek to balance the speed of innovation with the necessary safeguards to prevent misuse.
These changes are aimed at closing gaps in the regulatory framework that organized criminals exploit, ensuring that Australia’s financial system remains robust and resilient against evolving threats.
Source:
AUSTRAC CEO Brendan Thomas Speaking Notes at ACAMS Conference, AUSTRAC, June 2025