AML/CTF Amendment Act – Significant changes are set to take effect from March 2026 for the Australian Gambling Sector
Significant reforms to Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime will take effect in 2026 impacting both existing reporting entities (including gaming venues, wagering service providers and casinos) and suppliers of a range of new high-risk services that have not previously been subject to these requirements (including real estate agents, lawyers and accountants).
The reforms are designed to uplift Australia’s responsiveness to financial crime and to meet global best practices and standards set by the Financial Action Task Force (FATF). For existing reporting entities in the gambling sector, these reforms will take effect from 31 March 2026. We have highlighted some of the important aspects of these changes below and recommend that gambling operators commence reviewing their existing arrangements in advance of the quickly approaching deadline.
What the change means for gambling operators
Ensuring that AML/CTF Programs address an expanded range of matters, including incorporating all relevant policies, procedures, systems and controls.
Reviewing and updating risk assessments to ensure they identify, assess and document the risks that the gambling services provided may be exploited for money laundering, terrorism financing, or the proliferation of weapons.
Updates to AML/CTF policies and procedures, including Customer Due Diligence and Enhanced Customer Due Diligence
1. AML/CTF Program changes
For operators providing designated services, such as gaming venues, casinos and wagering operators, it will be critical to ensure that their AML/CTF Program contains the requisite detail under the amended AML/CTF Act. This includes content in relation to both a detailed risk assessment (discussed below) and also in prescribing how the operator mitigates the risk it faces in its business through its policies, procedures, systems and controls.
Under the current AML/CTF Act requirements, at least some of this detail would often be found separate to the AML/CTF Program itself. For example, transaction monitoring procedures will often be documented separately but these will need to be reviewed for suitability and consolidated within the AML/CTF Program going forward.
Operators will also need to consider whether they seek to maintain the current separation within their AML/CTF Program of Parts A and Part B. Part A currently focuses on how an operator identifies, mitigates and manages the money laundering and terrorism financing risks that their business reasonably faces. Part B is focused on the procedures for identifying customers and beneficial owners, including those that are deemed to be politically exposed persons (PEPs).
From March 2026, it will no longer be necessary to maintain this separation. Instead, operators can organise their AML/CTF program to suit their requirements, business needs and operational processes, provided that they still meets the legal and regulatory obligations as set out in the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and the newly made AML/CTF Rules. For example, an AML/CTF Program will also need to detail how internal compliance management occurs (including through the emphasised role of both the AML/CTF compliance officer and senior management).
2. Risk Assessment
Operators must maintain a comprehensive risk assessment that sets out how the organisation will manage and mitigate ML/TF risks and protect the business from the risk of being exploited by criminals to launder money or to finance terrorism. The risk assessment needs to inform the operator’s AML/CTF policies which should respond to the identified risks. A risk assessment must have regard to the kinds of services being provided, the types of customers, how these services are delivered, and the countries that a reporting entity does business in.
Reporting entities will now also be required to assess ‘Proliferation Financing’ risks, which include preventing the financing of activities related to the development or spread of weapons of mass destruction (WMD) and their delivery systems. Operators will be required to consider, for example, the risks associated with customers with links to countries such as Iran, North Korea, Russia, Syria, as well as the services provided, transaction patterns (especially those involving PEPs and cryptocurrencies), and how services are delivered.
As part of the reforms, if an operator’s proliferation financing risk is low and is addressed by internal AML/CTF policies, then they are not required to implement specific counter-proliferation financing policies.
3. Customer Due Diligence
Operators providing designated services currently have an obligation to undertake Customer Due Diligence (CDD) to verify their customers identity, assess their risk of financial crime against the business’s risk assessment framework and manage the risk associated with new customers.
Gaming machine operators, casinos, totalisator agency boards and on-course bookmakers remain exempt from these requirements but are now subject to a reduced transaction value threshold of $5,000 (down from $10,000), aligned with FATF Standards.
The new reforms separate CDD into two types:
Initial CDD – Operators will be required to identify the ML/TF/PF risk of the customer before providing a designated service, e.g., at the start of the relationship. This includes determining how a customer is rated against the risk assessment framework in the AML/CTF program, and screening to establish if the customer is a PEP or subject to any financial sanctions.
Ongoing CDD – Operators must conduct ongoing CDD during the course of the ongoing customer relationship. This requires managing ML/TF/PF risk of a customer and applying ongoing measures that are appropriate to each customer.
The new laws also clarify the level of checks that need to be applied to each customer under Initial CDD and Ongoing CDD. This includes:
Simplified CDD – Where the ML/TF/PF risk is low and no enhanced CDD triggers apply, an operator can apply simplified CDD, reducing the compliance burden on the business for low-risk customers.
Enhanced CDD – Required when a customer’s ML/TF/PF risk is high or where inherent ML/TF/PF risks associated with a business relationship exist, e.g., the customer is a foreign PEP or a suspicious matter reporting obligation arises in relation to their conduct.
Pre-commencement customers – Customers onboarded prior to the 2026 reforms do not require Initial CDD but must be checked for significant changes that could increase their ML/TF/PF risk to medium or high, or trigger a suspicious matter reporting obligation. If risk increases, both initial and ongoing CDD must be completed.
CDD exemptions are also being streamlined, including through the introduction of ‘keep open notices’, which replace the current Chapter 75 law enforcement operation exemptions. Law enforcement can now issue notices directly to reporting entities, allowing them to defer certain CDD obligations if undertaking them could alert a customer to an investigation.
4. Other changes
Some of the other changes coming into effect on 31 March 2026 include:
Designated Business Group - The concept of ‘reporting groups’ has been introduced which will replace the existing ‘designated business groups’ under the current AML/CTF Act. This allows for a co-ordinated approach to risk management and compliance resources, which can be centralised to streamline cost and oversight. Under this new model, one entity must be designated as the lead entity responsible for implementing the program, policies and procedures, risk assessment and controls, and monitoring systems and processes.
Value Transfer Services - The new laws introduce changes relating to electronic funds transfer instructions and designated remittance arrangements, which will be renamed to ‘Value Transfer Services’. These services will trigger obligations for payee information to be included in the transfer message, in addition to payer information, for transfers of money, virtual assets, or other property.
Reporting - International value transfer service (IVTS) reporting will replace the current international funds transfer instruction (IFTI) reports.
Bearer Negotiable Instruments - The definition of bearer negotiable instruments (BNIs) has been revised in response to industry feedback to reduce reporting burdens.
Legal Professional Privilege - The new laws will provide clearer protections for the disclosure of information or documents that may be subject to legal professional privilege. Further details on the process for managing and resolving assertions and claims of legal professional privilege will also be provided through Ministerial guidelines at a later date.
The 2026 reforms will bring substantial changes to AML/CTF compliance requirements across the gambling sector. Operators are encouraged to begin preparing by reviewing existing programs and governance arrangements to ensure alignment with the new legislative and regulatory framework by 31 March 2026.
About Senet
Senet is a multidisciplinary Australian firm specialising in gambling and gaming law, regulatory compliance, and business advisory services. We are the largest specialist team in Australia and based in Victoria. Recognised globally as experts in our field, we understand Australia’s complex gaming legal and regulatory landscape, enabling us to guide clients through their compliance requirements across each state and territory. Our clients range from start-ups to publicly listed global operators, both nationally and internationally. Our team is deeply immersed in the industry, often sharing insights at public speaking events, and our principals have held executive roles in a global ASX-listed entity and a 'Big Four' advisory firm, giving us a unique perspective on the challenges our clients face.
How we can assist
The Senet team has significant experience in assisting operators to navigate the financial crime and regulatory landscape. This includes drafting and implementing AML/CTF Programs, conducting appropriately considered risk assessments, controls development and providing training and documentation to support staff to identify issues and comply with their regulatory obligations. We also regularly undertake independent reviews as required under the AML/CTF Act and Rules.
If you have any questions or would like to discuss the topics covered in this article, please contact the team at Senet.
Please contact the team at Senet if you would like to discuss any of the topics covered in this article in further detail.
