Australia is entering a decisive phase of regulatory change as reforms reshape how banks and other financial institutions approach compliance with anti-money-laundering and counter-terrorism-financing (AML/CTF) rules.

Senior leaders from major financial and consulting firms outlined at a recent industry webinar how the new regulatory framework, scam-prevention codes and a shift to outcomes-based oversight are setting a new standard for the sector.

Panelists explained that the overhaul is not merely an administrative burden but a strategic catalyst for broader transformation.

Institutions that invest early in modernisation, automation and risk-intelligent processes stand to gain stronger compliance outcomes, reduced operational drag and enhanced customer experience.

Artificial intelligence (AI) was highlighted as a critical enabler: AI-driven systems are beginning to provide proactive and scalable support for financial-crime teams, freeing analysts to focus on complex investigations rather than routine tasks.

Regulatory requirements are changing fast.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has confirmed that from 1 July 2026 extended obligations will apply to previously exempt sectors such as real-estate professionals, accountancy firms and dealers in precious metals.

Current reporting entities will also face new rules from 31 March 2026 covering customer due-diligence, sanctions screening and value-transfer reporting.

The newly drafted AML/CTF Rules 2025 represent a cleaner, risk-based regime replacing the older checklist approach.

Industry speakers emphasised the operational implications: boards and senior management must rethink budgets and strategy to support investment in data, analytics and workflow automation.

Legacy systems and siloed fraud and AML infrastructures are being challenged by the volume and complexity of suspicious-matter reports.

Some institutions have already expanded their AML teams dramatically, yet warn that sheer scale of reporting does not in itself resolve underlying risks.

Strong compliance culture and governance are underscored as foundational.

The reforms require independent evaluations of AML/CTF programmes at regular intervals, robust incorporation of proliferation-financing risks, and dynamic programme changes overseen by senior managers.

As one advisor noted, “The era of box-ticking is over.”

Australia’s overhaul is designed to align more closely with international standards set by the Financial Action Task Force and to close longstanding gaps in professional-services regulation and virtual-asset oversight.

The momentum is clear — and institutions that embrace the change with strategic, technology-enabled and governance-driven responses may gain competitive advantage rather than simply comply.