For nearly two decades, strict anti-money laundering and counter-terrorism financing rules have mainly applied to higher-risk sectors like banks, casinos and bullion dealers but new federal legislation now widens that net dramatically. The aim is to close loopholes that have let criminal funds move through property deals, complex company structures, professional advice networks and luxury purchases, creating a more complete picture of how dirty money enters and moves through the economy.
Under the expanded regime, the number of reporting entities jumps from about 15,000 to an estimated 100,000 from mid‑year, bringing in real estate agencies, property developers, law firms, conveyancers, accounting practices, trust and company service providers and dealers in high‑value metals, stones and related products. Each reporting entity must appoint a dedicated anti-money laundering compliance officer, which means many small and mid-sized firms now need specialised staff or training at a time when the local talent pool for these roles appears relatively thin.
The bigger goal is to align Australia with international standards set by global financial crime watchdogs and avoid the reputational damage of being treated as a weak link in the global system. If the country were seen as too soft on money laundering, it could be categorised as higher risk, which in turn looks likely to discourage foreign investment and make cross‑border transactions more difficult. The regulator also gains broader enforcement powers, but there are concerns its systems and workforce may struggle to handle the surge in data and oversight responsibilities, especially as new technologies like AI-driven payment tools, identity theft tactics and heavy cash use continue to evolve faster than most compliance frameworks.
