Key points:
- AUSTRAC plans major regulatory overhaul by 2026
- New focus on outcomes and harm prevention across sectors
- Crypto ATMs and cash-in-transit firms flagged for heightened risk
AUSTRAC is preparing for the most significant reform to Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) framework in a generation, with new rules expected to bring almost 100,000 businesses under regulatory oversight by July 2026.
CEO Brendan Thomas said the agency is shifting from a compliance-based approach to one centred on outcomes and the real-world harms caused by financial crime.
AUSTRAC’s new strategy will assess and intervene at the industry level, rather than focusing solely on individual firms. Cryptocurrency ATMs have already come under scrutiny.
The number of machines has surged from 23 in 2019 to more than 1,800, prompting AUSTRAC to impose new conditions such as a AU$5,000 (US$3,350) transaction cap and mandatory scam alerts.
Cash-in-transit operations are also being investigated, following a major arrest linked to a company allegedly funnelling AU$190m through cryptocurrency. AUSTRAC believes some security firms may be mixing legitimate and illicit cash to obscure transaction origins.
Good to know: Data show nearly 30% of crypto ATM transaction value involves users aged 60 to 70, many of whom are scam victims turned money mules
To support broader intelligence gathering, AUSTRAC is expanding its Fintel Alliance and launching a Collaborative Analytics Hub to facilitate data sharing. These partnerships have already yielded results, including joint efforts with major banks to uncover hidden criminal networks.
AUSTRAC will publish its finalised ‘Rules’ in August. While perfection is not expected on day one, Thomas warned that businesses ignoring obligations could face enforcement.
Those engaging early and actively managing risk will be treated as regulatory partners.
