Second Tranche of Reforms

Second tranche of AML/CTF reforms

In October 2005 the Government announced it would proceed with reforms to strengthen Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) system in two tranches.

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (the AML/CTF Act) represents the first tranche of reforms, which covers the financial and gambling sectors.

The Government is now working on the second tranche of reforms. The aim of these reforms is to extend regulatory obligations to specified transactions conducted by a range of businesses and professions, including dealers in precious metals and stones, lawyers, accountants, real estate agents and trust and company service providers.

Draft legislative provisions which will amend the AML/CTF Act to implement the second tranche of reforms were publicly released in August 2007. These draft legislative provisions will amend section 6 of the AML/CTF Act to specify what new ‘designated services’ will trigger obligations under the AML/CTF Act.

The Department received a number of submissions from stakeholders in response to the draft legislative provisions.

These submissions can be viewed here. If you would prefer a hard copy of a submission please email aml.reform@ag.gov.au with your contact details and a copy will be posted as soon as possible.

Update on the second tranche of AML/CTF reforms

The active participation of industry in the early consultations has provided the Government with valuable information that will help to shape the second tranche of AML/CTF reforms. The Government is committed to developing a workable legislative framework for the second tranche of AML/CTF reforms that strikes a balance between efficient conduct of business and effective regulation to combat money laundering and terrorism financing.

The Government is currently considering the implementation process for the second tranche of reforms. The implementation process will include further consultation with the representatives of affected businesses.