Accountants back AML/CTF intent – but guidance gap raises concerns

AUSTRAC’s guidance material on new anti-money laundering and counter terrorism financing (AML/CTF) regulations provides some reassurance for the accounting profession, but concerns remain over the interpretation of the rules and the impact they will have on small businesses, says Australia’s largest accounting body, CPA Australia. 

CPA Australia’s Regulations and Standards Lead, Belinda Zohrab-McConnell, said the AML/CTF legislation is an example of a regulatory change that the profession supports, but the practical consequence is the imposition of increased costs and a lack of clarity.  

“The accounting profession supports the intent of the law but needs confidence in the guidance provided to comply with it,” she said. “Our profession is constantly dealing with increasing regulations that come with hefty penalties and deserves unambiguous clarity on how to navigate them. 

“This is the latest example of regulatory changes that will prove challenging for the tens of thousands of smaller accountants and their firms that do not have the time and systems to confidently meet the requirements. Costs will be passed on to their clients, further reducing Australians’ access to professional advice on their finances.”

Ms Zohrab-McConnell is particularly concerned about the lack of consistency between AUSTRAC’s guidance and the wording of the AML/CTF legislation on whether some typical accounting services are a designated service and thereby caught by the regime.

“Our concern is how accountants are supposed to rely on the AUSTRAC guidance when a substantial grey area remains when trying to identify a designated service. Our members’ biggest worry is making sure they stay on the right side of the law,” she said.

Ms Zohrab-McConnell urges AUSTRAC to finalise its Starter Program Kit for sole practitioners and micro firms as soon as possible.

“This was due to be released just before Christmas but has been deferred to late January,” she said. “The wealth of guidance from AUSTRAC is commendable but there is much to wade through which can make it overwhelming. It is unlikely that smaller entrants to the reformed AML/CTF regime will consider anything until the starter kit comes out next year.

“However, the guidance is now here, so it’s crucial that accountants take it seriously and begin to understand their obligations and prepare to be compliant by July 2026.”

CPA Australia will continue to update members with the latest advice in the coming months, including a webinar on November 17 where AUSTRAC representatives will address the impending compliance obligations.

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