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As the July 2026 deadline approaches for new AML/CTF compliance in Australia, a leading risk consultant has warned that there’s no time to lose – especially for smaller firms.
‘Critical’ months ahead for AML/CTF compliance
06 March 2025
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6 minute read
A leading risk consultant has warned that the months ahead will be “critical” for firms wanting to stay ahead of incoming AML/CTF regulations and avoid the consequences of non-compliance.
“While awareness is growing, there is a significant bridge to cross to understand the requirements of the AML/CTF Act,” Sachin Patel, senior principal at IBM Promontory Australia, said.
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“The next few months will be critical in bridging this gap through further training, regulatory guidance, and industry collaboration.”
Over 25 experts including Patel will come together at AML Edge 2025 in Sydney on Thursday, 27 March, at an event designed to help tranche 2 businesses break down the legislation and find practical ways forward.
Smaller firms need most help
Patel said smaller firms and sole practitioners may be less aware or underestimate the extent of their obligations.
“Larger accounting firms may be generally more attuned to these risks and already have compliance teams in place. However, many smaller firms and sole practitioners are in the process of understanding the practical implications of AML/CTF compliance,” he said.
“These firms will need to consider pragmatic approaches to compliance – such as technology – given they will not have the same level of resourcing as the larger firms.”
Risks of non-compliance
Patel warned of the financial, legal and reputational consequences of being ill-prepared and said firms risk losing clients if they are unable to adequately conduct due diligence at onboarding. There is also potential reputational damage if their controls for managing AML/CTF risk are not designed or implemented effectively.
“This could lead to a loss of trust from clients, regulators and the broader business community,” Patel said.
And finally, firms who do not keep accurate and complete records of how they are meeting their obligations could catch the eye of the regulator.
“Where there are gaps in records, this could lead to further scrutiny from AUSTRAC,” Patel said.
Join Patel, Daniel Mossop, A/g deputy chief executive regulation from AUSTRAC, and a comprehensive line-up of other expert speakers at AML Edge 2025 to gain the insights and strategies you need to stay compliant and competitive.
For more information and to secure your ticket, click here.
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