COMMITTEES

Senator CICCONE (Victoria) (17:29): I present the advisory report of the Parliamentary Joint Committee on Intelligence and Security on the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2026. I move: That the Senate take note of the report. The bill aims to strengthen our anti-money-laundering and counter-terrorism-financing framework by addressing emerging financial crime risks, updating the definition of 'terrorism financing' and making a range of technical amendments identified through the 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 finance, 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, delivery channels or other mechanisms that cause 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 concerning 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 CEO of AUSTRAC.

The committee considers that this approach appropriately balances responsiveness to emerging threats with the appropriate ministerial oversight of major regulatory interventions. The committee also recommended greater transparency around consultation processes undertaken before any restriction or prohibition is imposed, including the publication of submissions, consultation activities and AUSTRAC's responses to issues raised.

The inquiry paid particular attention to evidence concerning crypto ATMs. For instance, the committee heard that vulnerable elderly Australians were deliberately targeted and coerced into using crypto ATMs to transfer funds to scammers, resulting in significant financial harm. People aged 60 to 70 are among the biggest users of crypto ATMs in Australia, making up nearly 30 per cent of all transactions by value.

This means that older users, like our grandparents, are more likely to be targeted by crypto ATMs, with people over the age of 50 accounting for over 70 per cent of all transactions by value. The committee concluded that crypto ATMs can contribute to significant harm, affecting scam victims, and can increase the risks of money laundering and terrorism financing.

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', ensuring greater alignment with Australia's broader counterterrorism and sanctions framework and reflecting contemporary threat environments.

The Australian Criminal Code has also been updated to recognise that state actors like the IRGC can present the same terrorism risk as non-state actors. There is no reason why Australia's counter-terrorism-financing regime should not also fully recognise and guard against this threat. 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 the legacy payments infrastructure and report back to the committee on their progress.

Ultimately, the committee recommended that, subject to the recommendations contained in the report, the bill should be passed. I want to thank the deputy chair, Mr Wallace, committee members and all those who made a contribution to the inquiry through submissions and evidence at the public hearing. I do commend that report to the Senate.

I seek leave to continue my remarks. Leave granted; debate adjourned.