Time to be ready for new AML regime tight for conveyancers – AUSTRAC

AUSTRAC chief executive Brendan Thomas has conceded AML Tranche 2 timeframes are tight for conveyancers.

The CEO tasked with implementing Anti-Money Laundering and Counter-Terrorism (AML/CTF) reforms acknowledges they will present “challenges” for businesses trying to get up to speed.

He also reiterated that the regulator does not expect perfection from day one – awhich Australian Conveyancer revealed last month.

Mr Thomas was speaking as he set out expectations the sector needed to meet when they become regulated entities on 1 July next year.

“We acknowledge that the timeframes set by Parliament are tight,” he said, noting that Australia will be inspected by the global AML body, the Financial Action Taskforce, in 2026.

“We further acknowledge the challenges this presents for businesses preparing for the reforms.

“AUSTRAC does not expect perfection on day one.

“However, we do expect you to maintain your focus on reducing your money laundering risks.”

Identifying, mitigating and managing risks are at the heart of the process conveyancers need to implement, he said.

Mr Thomas also said that practitioners needed to do more than giving the impression ‘of compliance with the AML/CTF Act but have minimal impact on the risk of money laundering’.

The AUSTRAC expectations from 1 July, 2026 include that conveyancers must:

• be enrolled as a reporting entity. You will be able to access the online enrolment system from 31 March 2026
• have an AML program, either because you have adopted the starter program provided by AUSTRAC or have developed your own. The starter program will be available in December 2025
• have an AML/CTF Compliance Officer
• have trained your staff on your AML/CTF program and processes
• be ready to ask clients questions and report suspicious activity.   

The rollout of the reforms gives businesses a little over six months from the delivery of the AUSTRAC starter packs to day one of the compliance regime – and the possibility of $19,000 a day fines for failures.

In acknowledging this short timeframe, Mr Thomas conceded that conveyancers were up against organised criminal gangs and that they would develop the skills to spot potential money launderers.

“We recognise that, for businesses in the newly regulated sectors, these obligations are new,” he said.

“For many, the concept of money laundering and its connection to crime may be new too.

“Organised criminals are sophisticated in their methods of hiding money and transferring value.

“Spotting that behaviouris a practice, which improves over time as we learn more about what money laundering looks like and how it can be controlled effectively.

“We do not expect newly regulated businesses to be perfect at identifying and controlling for money laundering risks from day one. We do expect honest efforts to meet your obligations and report suspicions to AUSTRAC.

After 1 July 2026, he said that AUSTRAC will focus its enforcement in the newly regulated sectors on entities

• who wilfully ignore the obligation to enrol
• we suspect are complicit with, or wilfully blind to, money laundering in their business.

Read the full AUSTRAC article here