AML/CTF New Legislation

GSA Hospitality in partnership with Wotton Kearney reviews the recent changes to the Anti-Money Laundering and Counter-Terrorism Financing legislation.

Australia’s anti-money laundering landscape is undergoing one of its most significant transformations in over a decade — and the hospitality sector must take notice. In partnership with legal experts at Wotton Kearney, GSA Hospitality examines the sweeping changes introduced by the 2024 AML/CTF Amendment Act, outlining the heightened responsibilities now facing pubs, clubs, and licensed venues. These reforms don’t just raise the bar — they redraw the lines entirely.

The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 introduces significant reforms aimed at enhancing Australia's AML/CTF framework. These changes are designed to align with international standards and address emerging financial crime threats.

The Amendment Act, passed last year:

• updates the anti-money laundering and counter-terrorism financing (AML/CTF) program requirements; and
• has introduced a new offence.

Below is an update of the new offence and most important changes to the AML/CTF regime:

Introduction of new “tipping off” offence

It is now a criminal offence to disclose certain types of information to another person where it would or could reasonably be expected to prejudice an investigation.

Businesses and individuals covered by the AML/CTF are now prohibited from disclosing certain information to another person (other than AUSTRAC), only where it would or could reasonably be expected to prejudice an investigation.

Current Regime vs New Legislation

At a high level, the changes to the AML/CTF program requirements are set out below:

Implications for Pubs and Clubs and Regulatory Activity

AUSTRAC will continue targeted consultation on draft core guidance in working groups with industry associations and peak bodies and finalise the AML/CTF Rules by August 2025.

The new amendments introduce more stringent requirements for pubs and clubs which will require a proactive approach to AML/CTF.

There will be a higher regulatory burden because of the need to appoint a Compliance Officer and meeting the more onerous requirements around risk assessment and customer due diligence.  Staff training on how to identify and report suspicious activity and to understanding the new customer due diligence procedures will be required.

With added and more onerous regulatory requirements comes the risk of breach or non-compliance. Pubs and Clubs have a heightened risk to investigation and other regulatory action from AUSTRAC.  The costs of responding to any regulatory investigation or action can be significant.

Fines of $400million being sort by AUSTRAC against the Star Casino have been well published in the media.

Reassessing your risks and exposure? Talk to the GSA Hospitality team for direct support and advice.