AUSTRAC names ‘high-risk’ sector targets in | Australian Markets

Real property brokers, attorneys, accountants, and trust and company service suppliers are simply a few of the ‘tranche 2’ industries to be flagged by AUSTRAC as half of their financial crime ‘crackdown’ over the subsequent financial 12 months.

The company launched its priorities for the 2025-26 financial 12 months yesterday, with plans to implement anti-money laundering and counter-terrorism financing (AML/CTF) obligations on the subsequent tranche of companies by 1 July 2026, together with:

• real estate professionals – comparable to real estate brokers, consumers’ brokers and property builders;
• attorneys;
• conveyances;
• accountants;
• trust and company service suppliers; and
• sellers in treasured stones, metals and merchandise.

Businesses working in sectors recognized by AUSTRAC as “high-risk” together with digital asset-related companies, digital currencies and money, will even develop into a key regulatory focus from 31 March subsequent 12 months.

AUSTRAC chief government, Brendan Thomas, confirmed the company was additionally adjusting its regulatory course of to focus more on overseeing actions occurring within sectors as a complete fairly than by particular person entities.

This comes as AUSTRAC works in direction of it objective of overlaying 80,000 companies below its AML/CTF regime, forward of “major legislative reforms” set to come back into impact from July subsequent 12 months.

“This year marks a regulatory shift – from regulation that primarily checks for compliance to one focussed on substantive risks and harms,” he mentioned.

“AUSTRAC will have a look at risk and behavior at an industry and sector stage fairly than focussing solely on particular person entities.

“We’re working with current and new companies to make sure they’re knowledgeable about what’s anticipated of them forward of the modifications.

“We will be more direct in communicating what we expect to see from sectors, and clearer about specific failings and risks we want addressed sector-wide.”

Thomas additionally indicated that the digital asset and money sectors designated “high-risk” will come below intensified scrutiny over the subsequent financial 12 months, because the company appears to be like to grow its intelligence operate.

“We are also focussing efforts where the risk of harm is greatest, for example in digital currencies, which allow funds to move across borders quickly, cheaply and virtually anonymously,” he mentioned.

“Cash can also be extremely prone to money laundering as a result of it’s nameless, accessible and broadly accepted. While the use of money in Australia is declining, more than $100 billion remains to be in circulation.

“We see money laundering risks play out in cash intensive businesses as well as through digital currency exchanges and other virtual asset service providers that facilitate instantaneous global transfers.”

Thomas urged entities to be “proactive” in their current or impending inclusion below the AML/CTF regime, as AUSTRAC prepares for the “most ambitious overhaul of Australia’s anti-money laundering laws in a generation” and

“We’re determined to get it right,” he mentioned.

“Whether you’re already half of the regime or getting ready to come back into it, we would like you to be proactive in getting ready and making sustained progress in direction of compliance.

“As new sectors come on the scene, they will look to established businesses for examples of effective management of money laundering risk, so this is an opportunity to understand our priorities, improve compliance and help us lift standards across the board.”