MEDIA RELEASE (AU)

Businesses across Australia are being urged to familiarise themselves with new anti-money laundering compliance requirements now that accountants have officially become reporting entities under Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime, effective 1 July.

Chartered Accountants Australia and New Zealand (CA ANZ) described the reforms as a major step forward in strengthening Australia's financial system and closing gaps that criminals have exploited for too long.

New obligations for accountants

CA ANZ Group Executive Advocacy, Public and Government Affairs, Damian Ogden, said the changes place accountants on the front line of Australia's efforts to combat money laundering and serious financial crime.

"Accountants now have new obligations to help identify and deter money laundering, terrorist financing and other financial crimes," Mr Ogden said.

"The message to businesses is simple: be ready. Your accountant may need to ask more questions about your business, ownership structures, source of wealth and the purpose of particular transactions.

"That's not because they've become more intrusive. It's because they now have additional responsibilities under the law."

Unique role of accountants

The reforms recognise the unique position accountants occupy within the financial system. While a bank may only see individual transactions, accountants have visibility across a client's broader financial affairs, including business structures, ownership arrangements and financial relationships.

"Accountants are professionals who can see the bigger picture," Mr Ogden said.

"They understand how businesses operate, how financial structures fit together and where red flags may emerge. That makes the profession an important line of defence against financial crime."

The cost of inaction

Mr Ogden said it was important Australians understood that money laundering is not a victimless crime. According to AUSTRAC's 2024 National Risk Assessment, the illicit drug market alone generated an estimated $12.4 billion in criminal proceeds in 2022-23, all of which required laundering.

"Money laundering enables some of the most harmful criminal activity in our communities, including drug trafficking, human trafficking and child exploitation," he said.

How firms have prepared

Across the profession, firms have spent months preparing for the changes by reviewing systems, retraining staff and strengthening compliance processes.

"Firms are retooling, reviewing their client lists, retraining staff and appointing dedicated people whose job is to spot the warning signs before laundered money gets a chance to look clean," he said.

"It's a lot of work, but it's necessary, and we've worked with the government to make these laws workable for the accountant running a two-person firm in Penrith or Perth," he said.

What this means for businesses

For most businesses, the practical impact is straightforward: being prepared to provide information that helps their accountant understand who they are, who owns the business and the purpose of particular arrangements.

"These are important reforms that bring Australia into line with international expectations and help ensure our financial system remains trusted, transparent and resilient," Mr Ogden said.

"For honest businesses, this is simply a new part of doing business. But for those seeking to move illicit money through the system, the net is tightening."