Accounting firms should build AML/CTF program 'sooner rather than later’: Holding Redlich

Ahead of the ACE25 Accounting Conference and Expo, Jessica Tsiakis, partner at Holding Redlich discusses how businesses can prepare for the upcoming AML/CTF regulations.

Speaking to Accounting Times’ sister brand, Accountants Daily, Tsiakis said organisations must implement an appropriate AML/CTP program to ensure compliance before the obligations come into effect next year.

“The AML/CTF Act has been amended to ensure the AML/CTF regime can effectively deter, detect and disrupt money laundering and terrorism financing,” said Tsiakis.

“There have been a number of changes to the legislation, but key for accountants are the changes to expand the regime to capture certain high-risk services provided by accountants,” she added.

There are three key objectives of the Amendment Act including expanding the AML/CTF regime to high-risk services provided by tranche two entities; modernising the regulation of digital currency, virtual assets, and payments technology; and simplifying the AML/CTF regime to better prevent and detect financial crime.

“The regime is expanded by including new definitions of what are referred to as designated services,” she said.

“If you provide a designated service, you are regulated by the regime in respect of those services (and referred to as a ‘Reporting Entity’).”

“Professionals such as accountants, lawyers, and real estate agents are impacted by the expansion of the regime.”

“In relation to accountants, applicable designated services include managing client funds, financial accounts, and assets; and facilitating financial transactions,” she said.

The updated AML/CTF obligations will come into effect on 1 July 2026 for tranche two entities, with enrolment with AUSTRAC available from 31 March 2026.

This timeline provides newly regulated entities the chance to understand and prepare for the new obligations before they come into effect next year.

At the ACE25 Accounting Conference and Expo, Tsiakis will examine the impact of the new obligations and outline strategies for professionals and organisations to remain compliant.

“Accounting firms need to ensure that they have developed an appropriate AML/CTF Program, which is in place well prior to the deadline, so that they are in a place to comply by July 2026,” Tsiakis said.

“Accounting firms must also develop appropriate policies, procedures, systems and controls to properly manage these risks.”

“Accounting firms will need to ensure all professional services staff have a broad understanding of what is required by the regime, including how to properly identify and monitor their customers, and who within the business to alert if they notice suspicious transactions or conduct by their clients,” she added.

Tsiakis urges organisations to start the preparations sooner rather than later, stating that “some key challenges in complying will be ensuring that the organisation’s AML/CTF program is up and running before the new regime commences, so that any issues, such as the appropriate monitoring of transactions, or proper customer due diligence, can be ironed out prior to that time,” she concluded.

To hear more from Jessica Tsiakis, come along to the ACE25 Accounting Conference and Expo.

The second annual ACE25 Accounting Conference and Expo brings together leading industry professionals to arm attendees with the latest technical guidance and practical advice.

The conference will take place on Friday, 20 June 2025 at the Hyatt Regency, Sydney. Click here to buy tickets.

To learn more about ACE25 Conference and Expo, click here.