AML/CTF Reforms are now in effect: Is your Compliance Framework meeting the new regulatory landscape?

Australia's AML/CTF regime has entered a new phase. The recent reforms modernise the regulatory framework, strengthen alignment with international standards, and place greater emphasis on risk management and accountability. Existing reporting entities have been subject to the new framework since 31 March 2026, while newly regulated sectors came into scope on 1 July 2026.

Key changes to the reform include:

• Boards and senior management now have explicit accountability for AML/CTF effectiveness – it’s no longer just a compliance checkbox, but a governance priority. 

• Entities must identify, assess and manage proliferation financing risks alongside money laundering and terrorism financing risks. 

• The previous Part A/Part B AML/CTF program structure has been replaced with a flexible, outcomes‑based framework that lets businesses design programs that actually fit their risk profile. 

• Customer due diligence is stronger and more dynamic, with clear expectations around risk profiling, beneficial ownership checks and mandatory ongoing monitoring. 

• Designated Business Groups are out; Reporting Groups are in – with clearer obligations and enhanced liability for appointed lead entities in a Group structure. 

• Independent AML/CTF reviews are now mandatory at least every three years (and sooner if your business or risk profile changes significantly). 

What this means for organisations 

The emphasis has shifted from documenting compliance to demonstrating effectiveness. Organisations must show that their AML/CTF controls are operating as intended, with boards and senior management taking greater accountability for oversight and risk management. 

How LNP Audit & Assurance can help 

LNP Audit & Assurance performs independent AML/CTF reviews - as required by AUSTRAC. If your AML/CTF framework has not been independently reviewed since the reforms took effect, now is an ideal time to assess whether your organisation is meeting the new standard. 

To discuss your AML/CTF obligations and arrange an independent review, please feel free to contact us - we would be delighted to assist you. https://lnpaudit.com.au/contact