Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 – Virtual Asset Provisions
- Issuing authority
- Parliament of Australia
- Effective date
- Received Royal Assent on 10 December 2024. Major reforms for existing reporting entities commenced on 31 March 2026. Certain obligations for newly regulated virtual-asset services, including the expanded Travel Rule, were deferred under transitional arrangements until 1 July 2026.
- Scope
- Australia
Key requirements
1. Expanded AML coverage: More virtual-asset services are regulated, not just traditional digital currency exchanges. 2. AUSTRAC registration: Businesses providing designated virtual-asset services must enrol and, where required, register with AUSTRAC. 3. Customer due diligence (CDD): Verify customers and understand the nature of the business relationship. 4. AML/CTF programme: Maintain a risk-based AML/CTF programme with appropriate controls. 5. Transaction monitoring and reporting: Monitor activity and report suspicious matters to AUSTRAC. 6. Travel Rule: Collect and transmit required information for applicable virtual-asset transfers.
Quick Summary
The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 introduced major changes to Australia’s AML/CTF framework. For the crypto sector, it expands regulation beyond traditional digital currency exchanges to cover a wider range of virtual-asset services. Businesses brought within the regime may need to register with AUSTRAC, maintain an AML/CTF programme, conduct customer due diligence, monitor transactions, report suspicious matters and comply with Travel Rule requirements. The reforms are supported by the AML/CTF Rules 2025 and transitional rules that explain how the new obligations apply in practice. The Rules are registered and in force.
What is it?
Australia has regulated businesses that exchange money for digital currency since 2018. However, that framework did not cover the full range of services now offered in the crypto sector. The Amendment Act broadens the law so that additional virtual-asset activities fall within Australia’s AML/CTF regime. In Australia, the amended legislation now uses the term Virtual Asset Service Provider, or VASP, for businesses providing regulated virtual-asset services.
Who does it apply to?
- Virtual Asset Service Providers (VASPs)
- Crypto exchanges
- Crypto custody providers
- Other businesses providing regulated virtual asset services in Australia
Why does it matter?
Australia has regulated businesses that exchange money for digital currency since 2018. However, that framework did not cover the full range of services now offered in the crypto sector.
What should firms do?
- Review or create an AML/CTF programme based on their specific risks.
- Update customer identification and beneficial-ownership procedures.
- Implement transaction-monitoring and suspicious-matter-reporting processes.
- Prepare systems to collect and transmit Travel Rule information.
- Review the AML/CTF Rules 2025 and applicable transitional arrangements.
- Train staff and clearly assign responsibility for AML/CTF compliance.
AboutAML Breakdown
The Amendment Act is no longer proposed legislation. It received Royal Assent on 10 December 2024, and substantial amendments commenced on 31 March 2026 and 1 July 2026. The official Australian legislation register records the Act as Act No. 110 of 2024 and shows its amendments incorporated into the current AML/CTF Act. The AML/CTF Rules 2025 are also in force. Together with amendment and transitional rules issued in 2026, they provide operational detail and transitional relief for affected businesses. AUSTRAC has begun supervising the expanded virtual-assets sector. In May 2026, it announced targeted supervisory campaigns focused on how virtual-asset businesses were implementing the reforms. Australia’s broader Tranche 2 reforms also commenced from 1 July 2026, bringing designated services provided by legal, accounting, real-estate and precious-metals businesses into the AML/CTF regime.