High risk! AML/CTF Compliance - It's coming for accountants, real estate agents and lawyers! — Brown Wright Stein Lawyers | Sydney Lawyers - Tax Specialist Lawyers, Corporate & Commercial Lawyers..

The Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 (Bill) has been passed by Parliament. The Bill:

overhauls Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime; and

extends the regime to certain 'high-risk' services provided by accountants, lawyers, trust and company service providers, real estate professionals, and dealers in precious metals and stones (Tranche 2 Entities).

Key objectives

The objectives of the Bill are to:

simplify the AML/CTF regime to improve its effectiveness;
modernise the existing regime to reflect changing business structures and technologies; and
expand the AML/CTF regime to certain 'high-risk' services provided by Tranche 2 Entities.

Timing

For existing reporting entities, most of the changes will take effect on 31 March 2026.

For Tranche 2 Entities, the changes will take effect on 1 July 2026.

Tranche 2 Entities

The Bill introduces three new categories of regulated services: professional services, real estate and dealers in precious metals and stones.

Professional services

Assisting clients to:
- sell, buy or transfer real estate;
- sell, buy or transfer legal entities;
- sell or transfer a shelf company;
- carry out some transactional work, including equity and debt financing; or
- create or restructure a legal entity or arrangement.
Receiving, holding and controlling or managing a client's money, accounts or other property.
Acting as, or arranging another person to act as, any of the following on behalf of a person:
- director/secretary of a company;
- power of attorney;
- partner of a partnership;
- a trustee of an express trust; or
- a nominee shareholder.
Providing a registered office address or principal place of business address for a company.

Real estate

Brokering the sale, purchase or transfer of real estate on behalf of a buyer, seller, transferee or transferor.
Selling or transferring real estate, where the sale or transfer is not brokered by an independent real estate agent.

Dealers in precious metals and stones

Buying or selling precious metals, precious stones or precious products, whether involving cash or virtual assets, where the value of the transaction is greater than $10,000.

What do these changes mean for accountants, real estate agents, lawyers and other Tranche 2 Entities?

Key requirements for businesses providing the above services:

Next steps

You should start preparing for the changes now.

If you or your business falls within the scope of the Bill and you are unsure of its implications or want to take proactive steps to ensure AML/CTF compliance, please contact us.

The material in this article was correct at the time of publication and has been prepared for information purposes only. It should not be taken to be specific advice or be used in decision-making. All readers are advised to undertake their own research or to seek professional advice to keep abreast of any reforms and developments in the law. Brown Wright Stein Lawyers excludes all liability relating to relying on the information and ideas contained in this article.