The SMSF Association is urging impacted businesses to urgently prepare for Australia’s incoming anti-money laundering and counter terrorism financing reforms, amid concerns many may remain unprepared ahead of the 1 July 2026 compliance deadline.
Under the Federal Government’s expanded Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime, individuals and businesses that provide one or more of the new Tranche 2 “designated services” will be required to enrol with AUSTRAC as s reporting entity by 1 July 2026. They will also need to comply with a range of new obligations, including new customer due diligence procedures every time they provide a designated service.
SMSF Association Policy Manager Keddie Waller said the Association feared that many SMSF professionals captured under the Tranche 2 reforms had not yet taken necessary steps to comply with the pending obligations, and compliance is not just a matter of enrolling. It requires the development of an AML/CTF Program, staff training and due diligence and being ready to report suspicious matters to AUSTRAC.
AUSTRAC have made its regulatory expectations clear – newly regulated entities must have the following measures in place by 1 July 2026:
- Be enrolled with AUSTRAC as a reporting entity
- Document their AML/CTF Program tailored to their business
- Appoint an AML/CTF Compliance Officer, noting ‘fit and proper’ tests apply
- Train your staff on your AML/CTF obligations and procedures, and
- Be prepared to identify and report suspicious matters
Ms Waller said some businesses may require additional support to meet the new compliance requirements.
“Businesses unable to utilise AUSTRAC’s starter kit may need to consider alternative support options, including compliance workshops and alternative AML/CTF program templates,” she said.
“Businesses that delay their preparation risk significant regulatory exposure and operational disruption once the reforms take effect and potential financial pressures, including the risk of substantial financial penalties, apply” Ms Waller said.
“With weeks, not months until the reforms commence, it is critical firms start to prepare now or risk increased regulatory scrutiny.”