AML/CTF Reform 2026 - What AUSTRAC’s changes mean for financial services
Australia’s AML/CTF laws are changing from 2026 - firms need stronger governance, risk assessments, and controls to meet AUSTRAC expectations.
What’s changing in 2026?
AUSTRAC has confirmed that Australia’s AML/CTF Act is being reformed and that the reforms will affect current reporting entities and bring new services/entities into the regime.
Key dates:
31 March 2026: additional virtual asset-related services will come under AML/CTF regulation (with potential transitional rules under consideration).
1 July 2026: “Tranche 2” expands regulation to new sectors and services, and the reformed laws also impact existing reporting entities.
Even if your organisation is already an AUSTRAC reporting entity, these changes matter because they drive updated expectations around programme maturity, governance, reporting quality, and operational readiness.
Why this is a top 2026 search topic for stockbroking and advice firms
For stockbroking, wealth and advisory businesses, AML/CTF remains a board-level risk because:
Client onboarding, identity checks, beneficial ownership and transaction monitoring are data-dependent and highly scrutinised.
Any control failure can trigger remediation, regulator engagement and reputational harm.
External ecosystem changes (e.g., tranche expansion, virtual asset regulation) tend to increase regulator expectations and peer benchmarking.
What good AML/CTF looks like in practice
Risk-based governance (not “tick-box”)
Enterprise risk assessment and AML/CTF programme aligned to products, client segments, geographies and delivery channels.
Clear ownership and escalation paths, with board reporting that shows trends, not just volumes.
Customer due diligence that survives scrutiny
Strong CDD/EDD triggers, beneficial ownership collection, and ongoing review cadence.
Consistent standards across advisers/authorised reps, brokers, and digital channels.
Monitoring and reporting quality
Transaction monitoring that is tuned, tested and measurable (false positives, coverage, model changes).
Clear reporting workflows and decision logs to support auditability.
(Assumption: you’ll keep this article positioned at a “regulatory issues” level rather than a detailed operational playbook; if you want the latter, I’ll spin out a deeper how-to guide.)
Common pitfalls AUSTRAC and auditors find
“One-size-fits-all” risk assessments that don’t reflect real exposure
Weak EDD, especially for complex entities, offshore links, or high-risk industries
Poorly governed monitoring scenarios (no testing evidence, unclear thresholds)
Over-reliance on manual spreadsheets and ad hoc processes
Limited linkage between AML/CTF incidents and broader operational risk / resilience governance
How OCG helps clients prepare for AML/CTF reform (2026 ready)
Programme uplift & governance
AML/CTF programme refresh aligned to reformed expectations and business changes.
Board-ready MI: risk posture, monitoring outcomes, incident themes, remediation velocity.
Risk assessment and control design
Enterprise ML/TF risk assessments (products, clients, delivery channels, regions).
CDD/EDD playbooks and decision trees to reduce inconsistency.
Data governance for AML/CTF
Data lineage and quality checks for onboarding and monitoring fields.
Evidence packs for auditors and regulator engagement.
Operational implementation support
Workflow design and training for front-line teams, compliance, and operations.
Practical implementation plans tied to 2026 milestones.
FAQs
Do these reforms affect firms that already comply with AML/CTF today?
Yes. AUSTRAC states that the reformed laws impact current reporting entities as well as bringing new ones into scope.
When do the changes start?
AUSTRAC indicates tranche expansion from 1 July 2026, and additional virtual asset-related services from 31 March 2026 (with possible transitional rules being considered).
What’s the biggest practical risk for brokers and advice firms?
Data quality, inconsistent onboarding decisions, and monitoring systems that can’t be evidenced under scrutiny, especially when regulators intensify attention around reform periods.
Strengthen Your AML/CTF Programme for 2026
Work with OCG’s AML/CTF and Data Governance Specialists
Don’t wait for reform deadlines to expose gaps. OCG helps stockbroking, advisory and financial services firms uplift AML/CTF governance, build defensible risk assessments, and implement data-backed controls that stand up to AUSTRAC scrutiny.
