Navigating the New Anti-Money Laundering Laws: What Small Businesses Need to Know

The Australian government has introduced new Anti-Money laundering (AML) laws that place increased responsibility on small businesses.

Why ?

Serious and organized crime significantly affects communities, involving issues like human trafficking, child exploitation, and major drug offenses. Money laundering allows criminals to conceal the proceeds from these crimes and channel funds through legitimate businesses and systems. 

With financial crime costing Australia as much as $82 billion annually, these reforms aim to close the gaps that criminals have been exploiting and enhance Australia's capacity to detect and combat crime.

From 1 July 2026, AML/CTF obligations apply to certain services typically provided by the following businesses:  

• real estate professionals – such as real estate agents, buyer's agents and property developers

• conveyancers

• dealers in precious metals, stones and products

• lawyers

• accountants

• trust and company service providers.  

  
  

  

  These businesses must now act as the eyes and ears of the government by identifying and reporting suspicious cash transactions. This change creates pressure to comply with complex regulations, which can be challenging for small business owners unfamiliar with AML requirements. Understanding what these laws mean and how to adapt is essential to avoid penalties and support the fight against financial crime.

Real estate office desk with transaction documents

What the New AML Laws Require from Small Businesses

The updated AML laws expand the scope of businesses required to monitor and report suspicious activities. Real estate agents, lawyers, accountants, and other professionals must now:

• Verify the identity of clients involved in transactions, especially those involving large sums of cash.

• Keep detailed records of transactions and client information for a minimum period, often seven years.

• Report suspicious transactions to the Australian Transaction Reports and Analysis Centre (AUSTRAC) promptly.

• Implement internal controls and staff training to detect and prevent money laundering activities.

  
  

For example, a real estate agent handling a property sale involving a large cash deposit must verify the source of funds and report any unusual behaviour or inconsistencies. Failure to do so can lead to fines or legal action.

Why Small Businesses Are Under Pressure

Small businesses often lack the resources and expertise of larger corporations to manage compliance. The new laws require them to:

• Invest time and money in understanding AML obligations.

• Train staff to recognize red flags such as unusual payment methods or inconsistent client information.

• Develop or update compliance programs and reporting procedures.

• Maintain ongoing vigilance as criminals adapt their methods.

  
  

This can be overwhelming, especially for sole traders or small teams. However, ignoring these responsibilities risks severe penalties and damage to reputation.

Practical Steps for Small Businesses to Comply

Small businesses can take several practical steps to meet AML requirements without disrupting daily operations:

• Conduct a risk assessment to identify areas where money laundering risks are highest.

• Create clear policies and procedures for client identification, record-keeping, and reporting.

• Use technology tools such as client verification software to streamline processes.

• Train employees regularly on AML laws and how to spot suspicious activity.

• Establish a designated compliance officer or point of contact for AML matters.

• Keep up to date with changes in legislation and AUSTRAC guidance.

  
  

For instance, a law firm might implement a checklist for new clients that includes verifying identity documents and screening against sanction lists before proceeding with transactions.

Compliance officer reviewing transaction records

Common Red Flags to Watch For

Recognizing suspicious transactions is key to compliance. Some common red flags include:

• Large cash payments that do not match the client’s usual business.

• Transactions structured to avoid reporting thresholds.

• Clients reluctant to provide identification or details about the source of funds.

• Unusual patterns such as rapid movement of funds between accounts.

• Use of third parties or complex ownership structures to hide beneficiaries.

  
  

Small businesses should document any concerns and report them to AUSTRAC as required.

Support and Resources Available

The government and industry bodies provide resources to help small businesses comply:

• AUSTRAC offers free guidance materials, webinars, and a dedicated helpdesk.

• Industry associations often provide tailored training and compliance templates.

• Professional advisors such as accountants or compliance consultants can assist in setting up programs.

  
  

Taking advantage of these resources can reduce the burden and improve confidence in meeting obligations.

Moving Forward with Confidence

The new AML laws represent a significant shift for many small businesses. While the requirements may seem daunting, understanding the rules and taking practical steps can make compliance manageable. Small businesses play a vital role in protecting the financial system and their communities from crime.

By investing in training, clear policies, and ongoing vigilance, small business owners can meet their legal obligations and avoid costly penalties. Staying informed and proactive will help businesses navigate these changes successfully and contribute to a safer economy.

If you run a small business affected by these laws, start by reviewing your current processes today. Seek advice if needed and make compliance a priority. This approach will protect your business and support the broader effort to combat money laundering in Australia.