Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2026

Mr WALLACE (Fisher) (16:08): On behalf of the Parliamentary Joint Committee on Intelligence and Security, I present the advisory report on the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2026. Report made a parliamentary paper in accordance with standing order 39(e). Mr WALLACE: by leave—I rise today to present a report on behalf of the Parliamentary Joint Committee on Intelligence and Security for its review of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2026.

The bill seeks to strengthen Australia's anti-money laundering and counterterrorism financing framework by addressing emerging financial crime risks, updating the definition of 'terrorism financing' and making a range of technical amendments identified through implementation of the 2024 reforms. The inquiry considered how Australia's legislative framework can remain responsive to rapidly changing technologies, payment systems and criminal methodologies.

The committee received 19 submissions and heard evidence from government agencies, industry representatives, legal experts and civil society organisations. The committee found broad support for the objectives of the bill. Submitters recognised the serious harm caused by money laundering, terrorism financing, organised crime scams and other forms of financial abuse, and acknowledged the importance of ensuring Australia's regulatory framework remains fit for purpose.

A central feature of the bill is the creation of a new power to restrict or prohibit the use of products, services, deliveries, channels or other mechanisms that cause significant harm to Australia's financial system or community. The committee concluded that this proposal addresses a genuine gap in the existing framework, particularly where risks arise across an entire sector or mechanism rather than from the conduct of a specific entity.

However, the committee also considered evidence regarding the breadth and significance of the proposed power. To strengthen public confidence and accountability, the committee recommended that this power be exercised by the responsible minister acting on advice from the chief executive officer of AUSTRAC. The committee considers that this approach appropriately balances responsiveness to emerging threats with ministerial oversight of major regulatory interventions.

The committee also recommended greater transparency regarding consultation processes undertaken before any restriction or prohibition is imposed, including publication of submissions, consultation activities and AUSTRAC's response to issues raised. The inquiry paid particular attention to evidence concerning cryptocurrency automated teller machines, commonly known as crypto ATMs.

While evidence differed regarding the scale of the risks involved, the committee concluded that crypto ATMs can contribute to significant harm, affecting scam victims and increased money laundering and terrorism financing risks. Accordingly, the committee recommended that the minister, in consultation with AUSTRAC, consider as a matter of priority whether restrictions or prohibitions on crypto ATMs are warranted in the public interest.

The committee also supports amendments updating the definition of 'terrorism financing' to ensure alignment with Australia's broader counterterrorism and sanctions frameworks and to reflect more contemporary threat environments. Beyond the bill itself, the committee identified broader issues relating to financial system resilience and traceability. In particular, the committee examined evidence concerning the continued operation of the bulk electronic clearing system, or BECS.

The committee recommended that AUSTRAC, the Reserve Bank of Australia and industry stakeholders undertake further assessment of the money laundering and terrorism financing risks associated with legacy payments infrastructure, and report back to the committee on progress. Recognising the substantial compliance obligations that have recently commenced under the tranche 2 reforms, the committee also recommended delaying commencement of new obligations arising from this bill until 1 July 2027.

This would allow affected entities adequate time to develop systems, processes and compliance arrangements while supporting stronger long-term implementation outcomes. Ultimately, the committee recommended that, subject to the recommendations contained in the report, the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2026 be passed by the parliament.

I thank the chair, Senator Ciccone; the committee members; the secretariat; and all those who contributed to the inquiry through submissions and evidence at the public hearing. I commend the report to the House.