For those in the clubs and pubs space who operate gaming machines/have entitlements to operate gaming machines, which is considered a designated service, you are likely aware of your existing compliance obligations, such as:
- Enrolling and registering with AUSTRAC;
- Developing and maintaining an AML/CTF program tailored to the business;
- Conducting initial and ongoing customer due diligence;
- Reporting certain transactions and suspicious activities; and
- Making and keeping records,
However, you may not be aware that Australia is making significant changes to its anti-money laundering and counter-terrorism financing laws to modernise its compliance regime and align with international standards. These changes include, but are not limited to:
- The expansion of the definition of designated services to include services offered by professionals in legal, accounting, and real estate sectors, dealers in precious metals and precious stones;
- Amendment of AML/CTF program requirements, which requires, amongst other things:
- Conducting a risk assessment that is tailored to your business and considers the risks that your business may realistically face;
- Addressing specific money laundering, terrorism financing, and proliferation financing (new category) risks for your business with proportionate risk mitigation measures;
- General compliance with the requirements of the amended AML/CTF Act and new AML/CTF Rules;
- Explicit appointment of an AML/CTF compliance officer; and
- Dealing with the role of governing bodies and/or senior management in overseeing risk and compliance.
- Enhancement of AUSTRAC’s regulatory powers including the authority to issue civil penalty orders, enforceable undertakings, infringement notices, and remedial directions for entities which are non-compliant.
These changes come into effect on 31 March 2026 for businesses that are currently regulated, and your business will need to be compliant with all new obligations by this date.
For newly regulated entities captured by the expansion of designated services, the changes come into effect on 1 July 2026, and your business will need to be compliant with all existing and new obligations by this date. AUSTRAC has indicated that it will be focusing its enforcement on newly regulated sectors, therefore, action here is critical.
As a leading firm in Australia for hotels, pubs, and clubs with over 30 years’ specialist experience in the hospitality, liquor, and gaming industry, we have been eagerly monitoring the finalisation of the new AML/CTF Rules (which have now been released) and are well placed to assist you and your business with all of your anti-money laundering and counter-terrorism financing needs to maintain compliance throughout this transition, including:
- conducting risk assessments of your practices and procedures;
- determining whether an exemption applies to your business;
- advising on or updating AML/CTF policies/programs; and
- drafting AML/CTF policies/programs to ensure compliance.
We will be continuing to monitor the release of core guidance and sector-specific guidance from AUSTRAC so we can best support our clients.
If you would like to discuss these changes, please don’t hesitate to contact me on 07 3224 0230.
