meta_id 3018278

On 30 March 2026, Australia's Department of Home Affairs brought into force the Anti-Money Laundering and Counter-Terrorism Financing Transitional Rules 2026. This legislative instrument was authorised by the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 and establishes transitional arrangements for entities subject to Australia's anti-money laundering and counter-terrorism financing (AML/CTF) regime. The transitional rules provide a framework for regulated entities to adjust their compliance obligations during the implementation period following the 2024 amendment act. These rules are designed to facilitate a smooth transition for financial institutions, reporting entities, and other organisations required to comply with AML/CTF requirements under Australian law. The rules specify timeframes and conditions under which entities may operate under modified compliance arrangements before full compliance with amended obligations becomes mandatory. The rules include: Registration and status continuity: Existing remittance providers have their status unchanged. Existing digital currency exchanges automatically become Virtual Asset Providers (VASPs) under the new regime. Existing remittance providers have their status unchanged. Existing digital currency exchanges automatically become Virtual Asset Providers (VASPs) under the new regime. Requirement for AML/CTF policies to deal with carrying out initial customer due diligence: A reporting entity is taken to comply with the AML/CTF Amendment Act if: The reporting entity maintains AML/CTF policies that: provide for the reporting entity to carry out customer due diligence using customer identification procedures that comply with the requirements of the AML/CTF Rules as in force on 30 March 2026 for applicable customer identification procedures; and identify the classes of customer such a customer identification procedure is to be applied to, in relation to commencing to provide a designated service at or through a permanent establishment in Australia; the AML/CTF policies relating to the use of customer identification procedures for classes of customers: are appropriate for managing and mitigating the risks of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing its designated services; and are appropriate to the nature, size and complexity of the reporting entity’s business. A reporting entity is taken to comply with the AML/CTF Amendment Act if: The reporting entity maintains AML/CTF policies that: provide for the reporting entity to carry out customer due diligence using customer identification procedures that comply with the requirements of the AML/CTF Rules as in force on 30 March 2026 for applicable customer identification procedures; and identify the classes of customer such a customer identification procedure is to be applied to, in relation to commencing to provide a designated service at or through a permanent establishment in Australia; the AML/CTF policies relating to the use of customer identification procedures for classes of customers: are appropriate for managing and mitigating the risks of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing its designated services; and are appropriate to the nature, size and complexity of the reporting entity’s business. The reporting entity maintains AML/CTF policies that: provide for the reporting entity to carry out customer due diligence using customer identification procedures that comply with the requirements of the AML/CTF Rules as in force on 30 March 2026 for applicable customer identification procedures; and identify the classes of customer such a customer identification procedure is to be applied to, in relation to commencing to provide a designated service at or through a permanent establishment in Australia; provide for the reporting entity to carry out customer due diligence using customer identification procedures that comply with the requirements of the AML/CTF Rules as in force on 30 March 2026 for applicable customer identification procedures; and identify the classes of customer such a customer identification procedure is to be applied to, in relation to commencing to provide a designated service at or through a permanent establishment in Australia; the AML/CTF policies relating to the use of customer identification procedures for classes of customers: are appropriate for managing and mitigating the risks of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing its designated services; and are appropriate to the nature, size and complexity of the reporting entity’s business. are appropriate for managing and mitigating the risks of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing its designated services; and are appropriate to the nature, size and complexity of the reporting entity’s business. Establishment of Informal Value Transfer System (IVTS) reporting obligations transfer date as 31 March 2029. Delayed application of requirement to report transfers of value involving unverified self-hosted virtual asset wallets, Section 46A of the AML/CTF Act does not apply to a reporting entity in relation to a designated service if the reporting entity commences to provide the designated service before 31 March 2029. Establishment of specific rules for VASPS: Delayed application of certain Principal Act provisions. The following provisions of the AML/CTF Act do not apply, until 1 July 2026, to a reporting entity in its capacity as an entity that provides a registrable virtual asset service: Part 1A (which deals with AML/CTF programs); Part 2 (which deals with customer due diligence); Part 3 (which deals with reporting obligations); Part 5 (which deals with obligations relating to transfers of value); Divisions 2 to 6 of Part 10 (which deal with record keeping). Registration to provide registrable virtual asset services: Section 76A of the AML/CTF Act does not apply to the provision by a person of a registrable virtual asset service if: the service is not covered by item 50A of table 1 in section 6 of the Principal Act; and the service is provided on or before 30 June 2026; and the person submits an application for registration under section 76D of the Principal Act no later than 29 July 2026. Section 76A of the Principal Act does not apply to the provision by a person of a registrable virtual asset service if: the service is not covered by item 50A of table 1 in section 6 of the Principal Act; and the person has submitted an application for registration under section 76D of the Principal Act before providing the service; and the application was submitted no later than 29 July 2026; and at the time of providing the service, the AUSTRAC CEO has not given the person written notice of a decision to register the person or to refuse to register the person. Subsection 76D(4) of the AML/CTF Act does not apply in relation to an application for registration made between 31 March 2026 and 29 July 2026. Delayed application of certain Principal Act provisions. The following provisions of the AML/CTF Act do not apply, until 1 July 2026, to a reporting entity in its capacity as an entity that provides a registrable virtual asset service: Part 1A (which deals with AML/CTF programs); Part 2 (which deals with customer due diligence); Part 3 (which deals with reporting obligations); Part 5 (which deals with obligations relating to transfers of value); Divisions 2 to 6 of Part 10 (which deal with record keeping). Part 1A (which deals with AML/CTF programs); Part 2 (which deals with customer due diligence); Part 3 (which deals with reporting obligations); Part 5 (which deals with obligations relating to transfers of value); Divisions 2 to 6 of Part 10 (which deal with record keeping). Registration to provide registrable virtual asset services: Section 76A of the AML/CTF Act does not apply to the provision by a person of a registrable virtual asset service if: the service is not covered by item 50A of table 1 in section 6 of the Principal Act; and the service is provided on or before 30 June 2026; and the person submits an application for registration under section 76D of the Principal Act no later than 29 July 2026. Section 76A of the Principal Act does not apply to the provision by a person of a registrable virtual asset service if: the service is not covered by item 50A of table 1 in section 6 of the Principal Act; and the person has submitted an application for registration under section 76D of the Principal Act before providing the service; and the application was submitted no later than 29 July 2026; and at the time of providing the service, the AUSTRAC CEO has not given the person written notice of a decision to register the person or to refuse to register the person. Subsection 76D(4) of the AML/CTF Act does not apply in relation to an application for registration made between 31 March 2026 and 29 July 2026. Section 76A of the AML/CTF Act does not apply to the provision by a person of a registrable virtual asset service if: the service is not covered by item 50A of table 1 in section 6 of the Principal Act; and the service is provided on or before 30 June 2026; and the person submits an application for registration under section 76D of the Principal Act no later than 29 July 2026. the service is not covered by item 50A of table 1 in section 6 of the Principal Act; and the service is provided on or before 30 June 2026; and the person submits an application for registration under section 76D of the Principal Act no later than 29 July 2026. Section 76A of the Principal Act does not apply to the provision by a person of a registrable virtual asset service if: the service is not covered by item 50A of table 1 in section 6 of the Principal Act; and the person has submitted an application for registration under section 76D of the Principal Act before providing the service; and the application was submitted no later than 29 July 2026; and at the time of providing the service, the AUSTRAC CEO has not given the person written notice of a decision to register the person or to refuse to register the person. the service is not covered by item 50A of table 1 in section 6 of the Principal Act; and the person has submitted an application for registration under section 76D of the Principal Act before providing the service; and the application was submitted no later than 29 July 2026; and at the time of providing the service, the AUSTRAC CEO has not given the person written notice of a decision to register the person or to refuse to register the person. Subsection 76D(4) of the AML/CTF Act does not apply in relation to an application for registration made between 31 March 2026 and 29 July 2026. The transitional rules came into effect on 31 March 2026 and remain in force.