‘Your role is critical:’ AUSTRAC releases accounting AML/CTF starter pack

Financial regulator AUSTRAC has released a series of starter packs to help firms soon to be regulated under anti-money laundering and counter-terrorism financing (AML/CTF) rules comply with their new obligations.

“The kits aim to reduce the time, cost and effort for typical small businesses to develop an anti-money laundering program and will help ensure businesses new to anti-money laundering regulation meet their obligations without excessive regulatory burden,” AUSTRAC CEO Brendan Thomas said.

From 1 July 2026, accounting firms that provide designated services, including assisting with real estate transactions and setting up trust and company structures, will be captured under AML/CTF rules as ‘tranche 2’ entities.

These entities would be required to enrol with AUSTRAC, develop an AML/CTF program, conduct ongoing customer due diligence, report suspicious activities and maintain adequate records of their compliance activities.

To help soon-to-be-regulated accounting firms adhere to their new obligations, AUSTRAC has released a ‘starter kit’ geared towards small accounting firms conducting low-risk work.

“Accountants are often exploited for money laundering in Australia. This is because they often handle large volumes of physical currency, facilitate international transactions and create complex legal structures that can obscure the origins of illicit funds,” AUSTRAC explained.

“Your role is critical in identifying and responding to AML/CTF risks.”

The tranche 2 reforms were introduced to crack down on money laundering and give AUSTRAC greater visibility of ‘gatekeeper professions’, which could be utilised by criminals to hide and move around illicit money, bringing Australia in line with international standards.

While the scale of Australia’s money laundering problem is difficult to measure, the Australian Institute of Criminology (AIC) estimated that Australia generates as much as $43.7 billion from criminal proceedings annually.

“Organised crime costs the Australian economy billions of dollars and does immeasurable harm to the community each and every year,” Thomas said.

“The changes to the anti-money laundering regime will enable AUSTRAC and newly regulated businesses to work together to shut criminals out of the financial system and disrupt their illegal enterprises.”

AUSTRAC said its starter kits would provide a “comprehensive AML/CTF framework” aligned with Australian standards, including a risk assessment covering common issues faced by accountants, policies that outline deadlines and key obligations, processes explaining day-to-day AML/CTF tasks and forms to record information and demonstrate compliance.

“Risk may seem like an abstract concept, but our kits tell you exactly what it means,” Thomas said.

“If your customer is buying real estate with large amounts of physical currency, is engaging in unusual behaviour that can’t be explained with a legitimate reason or is hiding behind complex legal structures, the kit gives you the tools you need to deal with these situations.”

Accounting firm Grant Thornton welcomed the kits, saying they were designed to be “immediately actionable” for professionals, not just high-level guidance.

“Developed with input from industry and significantly supported by Grant Thornton, the Kits demonstrate a new model of regulator and industry collaboration focused on prevention, clarity, and practical support,” risk consulting partner Neil Jeans said.

“This approach helped ensure the Starter Kits are grounded in how these businesses actually work, translating regulatory requirements into clear, proportionate, and practical steps that helped shape the Starter Kits into something that enables T2 businesses to achieve effective AML/CTF compliance without unnecessary complexity, cost, or administrative burden.”