The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 establishes obligations for Australian businesses to detect and prevent money laundering and terrorism financing. It aims to protect the integrity of the financial system.

• Customer Due Diligence (CDD): Requires verification of customer identities and monitoring of transactions.
• Suspicious Matter Reporting: Mandates reporting of suspicious activities to AUSTRAC (Australian Transaction Reports and Analysis Centre).
• Recordkeeping: Obligates businesses to retain records of customer identification and transactions for at least seven years.
• Risk Management Programs: Requires organizations to develop and maintain anti-money laundering (AML) and counter-terrorism financing (CTF) compliance programs.

Enacted in 2006, the Act is continuously updated to address emerging risks and comply with global standards, such as recommendations from the Financial Action Task Force (FATF).

• Severe Penalties: Organizations may face significant financial penalties or even criminal charges.
• Operational Disruptions: Non-compliance can result in enhanced regulatory scrutiny or suspension of operations.
• Reputational Damage: Failures may erode stakeholder and customer trust.

• Risk Reduction: Minimizes exposure to financial crime and regulatory penalties.
• Regulatory Trust: Builds confidence with AUSTRAC and other regulators.
• Global Alignment: Demonstrates adherence to international AML and CTF standards.