Australia — AML/CFT Framework

Virtual asset service providers, which replaced digital currency exchange providers on 31 March 2026, must enrol with AUSTRAC as reporting entities (AML/CTF Act 2006 s 51B); registrable virtual asset services are virtual asset safekeeping, exchange, transfer, and services connected with the offer or sale of a virtual asset (s 5; s 6 table 1 items 29, 30, 46A, 50A-50C).

A service is a designated service under the AML/CTF Act 2006 only where it has a geographical link to Australia (s 100), and a person who commences to provide a designated service must apply to AUSTRAC for enrolment on the Reporting Entities Roll (s 51B).

Providers of registrable remittance services and registrable virtual asset services must both enrol with AUSTRAC (AML/CTF Act 2006 s 51B) and be registered, on the Remittance Sector Register (s 74) or the Virtual Asset Service Provider Register (s 76A), as amended by Act No. 110 of 2024.

As of April 29, 2026, generally lawyers, accountants, real estate agents, conveyancers, or dealers in precious metals/stones do not need to register (enrolment only if providing designated services). However, this is expected to change with AML/CTF reforms rolling in from 1 July 2026, which will significantly impact professional services compliance.

A person who commences to provide a designated service and is not on the Reporting Entities Roll must apply to AUSTRAC for enrolment no later than 28 days after commencing; each day of delay is a separate contravention of a civil penalty provision (AML/CTF Act 2006 s 51B(1), (2C), (3)).

Under the AML/CTF Act 2006 as amended by Act No. 110 of 2024, reporting entities must undertake an ML/TF risk assessment and maintain AML/CTF policies (ss 26C, 26F), conduct initial, ongoing and enhanced customer due diligence (ss 28, 30, 32), report suspicious matters to AUSTRAC (s 41) and keep records (Part 10).

Persons who began providing the newly designated real estate, professional services or precious-metals dealing services (AML/CTF Act s 6 table 2 item 2, tables 5 and 6) before 1 July 2026 had until 29 July 2026 to apply to enrol with AUSTRAC (Act No. 110 of 2024, Sch 3 Pt 4 item 12).

Digital currency exchange providers have had to register with AUSTRAC since 3 April 2018 (AML/CTF Amendment Act 2017, No. 130); since 31 March 2026 providers of registrable virtual asset services must be registered virtual asset service providers (AML/CTF Act 2006 s 76A, as amended by Act No. 110 of 2024), and ASIC licensing applies separately where a digital asset is a financial product (INFO 225).

The Corporations Amendment (Digital Assets Framework) Act 2026 (No. 38) exempts small platforms only where total transactions through the platforms in the last 12 months do not exceed $10 million and the client's total entry values do not exceed $5,000; both conditions must be met.

The Corporations Amendment (Digital Assets Framework) Act 2026 (No. 38, assent 8 April 2026) regulates digital asset platforms (s 761GC) and tokenised custody platforms (s 761GD); s 761GB defines a digital token by factual control, meaning the ability to transfer it, exclude others from transferring it, and demonstrate both.

ASIC INFO 225 (updated October 2025) states that offering a self-custody or self-hosted wallet product is unlikely to amount to providing a custodial or depository service, whereas controlling a customer's private keys likely is.

Treasury consulted on token mapping from 3 February to 3 March 2023; the resulting digital asset platform reform was enacted as the Corporations Amendment (Digital Assets Framework) Act 2026 (No. 38), passed by both Houses on 1 April 2026 with assent on 8 April 2026.

AML/CTF Act 2006 s 46A, inserted by Act No. 110 of 2024, requires a reporting entity that transfers virtual assets to, or receives them from, a self-hosted wallet whose controller it has not verified to report to the AUSTRAC CEO within 10 business days.

Since 31 March 2026 (Act No. 110 of 2024, Sch 8), AML/CTF Act 2006 s 64 requires an ordering institution, including for virtual asset transfers, to collect and, where the AML/CTF Rules require, verify specified information before giving effect to a transfer of value and to pass it to the next institution in the value transfer chain.