The slow but steady rise to meet AML/CTF reform obligations
AML/CTF reform enrolments by conveyancers are behind schedule but with an extension to the deadline, AUSTRAC anticipates a rise as practitioners get their heads around the obligations.
CONVEYANCERS might be dragging the chain on their AML/CTF enrolments, with only 1,550 registered with AUSTRAC as of July 2.
However, 5,550 lawyers have enrolled, and many of them also provide conveyancing services.
While there are an estimated 7,400 people providing conveyancing services in Australia, it’s their firms or employers who must enrol. So maybe they’re doing OK.
AUSTRAC CEO Brendan Thomas last month acknowledged that enrolments as at mid-June were lagging.
“There’s still a way to go in terms of those enrolment numbers,” he told a June 18 The Industry Collective Speaks event, co-sponsored by Australian Conveyancer.
“But… there’s quite an uptick coming.”
The new regulations took effect on July 1, with possibly 80,000 to 100,000 Tranche 2 entities affected.
Those are conveyancers, lawyers, real estate agents, accountants, jewellers and precious metal dealers.
A total of 31,400 had enrolled by July 2, or 30-40 per cent of those needing to sign up.
But the laggards have extra time. The rules say you must apply to enrol no later than 28 days after the day you start providing a designated service.
So, the effective deadline is July 29.
AUSTRAC hasn’t said whether sign-ups are going according to plan, but it remains confident.
“We expect a significant cohort of newly regulated businesses… to enrol with AUSTRAC by 29 July 2026,” a spokesperson said.
“Any business providing designated services needs to ensure it enrols before the deadline.”
Among their new responsibilities, affected entities must:
- Enrol with AUSTRAC
- Appoint an AML/CTF compliance officer
- Develop an AML/CTF program
- Train staff in their AML obligations, and
- Begin due diligence on clients and be prepared to report suspicious matters to AUSTRAC.
They’ll need to verify clients’ identities, assess the source of funds, keep records, and submit an annual report.
Industry bodies such as the AIC and REIA offer help, as do software providers such as triSearch.
AUSTRAC has made it clear that the new rules are not to be ignored.
There is plenty of guidance on its website, including industry-specific starter kits.
Although AUSTRAC has indicated it will initially hand out warnings or infringement notices, court-imposed penalties can be severe.
This year, two Tranche 1 financial services companies were fined $50,000 and $45,000, respectively, for failing to pay infringement notices.
In 2023, Crown Resorts was ordered to pay $450 million, Australia’s third-largest corporate fine.
