AML, short for Anti-Money Laundering, refers to the body of laws, regulations and operational processes designed to prevent, detect and report the use of the financial system to disguise the proceeds of crime. In Australia, AML obligations sit under the AML/CTF Act 2006 and are supervised by AUSTRAC, the national financial intelligence unit. Reporting entities — banks, financial services firms, gambling operators, and from 1 July 2026 a much wider group including lawyers, accountants and real estate agents — must run customer due diligence (CDD), monitor transactions, lodge suspicious matter reports (SMRs), and keep records for seven years. AML doesn't just mean stopping criminals; it means evidencing that your business has a documented program, trained staff and working controls.
What AML means in practice from 1 July 2026
Tranche 2 brings tens of thousands of previously unregulated Australian businesses into the AML regime on 1 July 2026. From that date, you can't provide a designated service without an enrolled AUSTRAC entity, a written AML/CTF program, and operating controls. The penalty regime — up to A$22 million per contravention — applies to professional services firms the same way it applies to banks.
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