✦ Plain-English Summary

Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2026

What it does

This bill tightens Australia's rules for tracking and stopping money laundering and terrorist financing. It updates existing laws with stricter checks on high-risk payment methods, clearer definitions of what counts as terrorism financing, and stronger requirements for banks and financial firms to know who their customers really are.

Why it matters

Money laundering and terrorist financing undermine the integrity of the financial system and can fund serious crimes and violence. Stronger rules make it harder for criminals to hide dirty money in Australia and help protect everyday Australians from being unwittingly connected to illegal activity.

Key details

• High-risk payment methods: From 1 January 2027, new rules will regulate how certain risky financial mechanisms (like informal money transfer systems) can be used, with penalties for non-compliance.

• Customer checks: Banks and financial institutions must do better background checks when customers open accounts and keep checking on them over time—especially for politically exposed persons (like politicians and their associates).

• Phased rollout: Most changes kick in from January 2027 onwards, though some technical fixes start within 28 days of the bill passing Parliament, allowing businesses time to adapt their systems.

Official Description

Amends the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 to: enable the Chief Executive Officer of the Australian Transaction Reports and Analysis Centre to restrict or prohibit reporting entities from using high-risk mechanisms to provide designated services; amend the meaning of financing of terrorism to reference new offences for financing a state sponsor of terrorism; and make technical amendments.

Committee Referrals

Senate Standing Committee for the Scrutiny of Bills

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