TITLE: Australia's Information Commissioner Releases Updated Privacy Guidance for Anti-Money Laundering Reporting Entities
BODY:
On 27 February 2026, the Office of the Australian Information Commissioner (OAIC) released updated privacy guidance for reporting entities operating under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).
The guidance clarifies privacy obligations for businesses collecting and handling personal information for AML/CTF compliance purposes. Key updates address the collection, retention, and deletion of personal data, with particular emphasis on identification documents. From 31 March 2026, current reporting entities ('Tranche 1') must cease retaining full copies of identity documents for AML/CTF record-keeping purposes, as the AML/CTF regime does not require such retention. From 1 July 2026, an expanded range of reporting entities ('Tranche 2') including real estate professionals, dealers in precious metals and stones, and professional service providers such as lawyers, conveyancers, accountants, and trust and company service providers will fall under the Privacy Act 1988 (Privacy Act) for the first time.
The guidance emphasises that reporting entities must collect only personal information reasonably necessary to comply with AML/CTF obligations and perform broader organisational functions. Entities must maintain clear, accessible privacy policies and collection notices explaining how personal information is handled, unless doing so would breach statutory tipping-off restrictions. Privacy Commissioner Carly Kind noted that unnecessary retention of identity documents creates privacy and security risks for both individuals and businesses, particularly in the event of data breaches.
The OAIC has developed a Privacy Essentials Checklist to support reporting entities in preparing for these obligations. All reporting entities are encouraged to review the updated guidance alongside the Australian Privacy Principles Guidelines, AUSTRAC's guidance on AML/CTF reforms, and AUSTRAC's Program Starter Kits to ensure consistent and compliant approaches.