CPA Australia highlights concerns over upcoming AML/CTF regulations

CPA Australia has issued a statement regarding the guidance material released by AUSTRAC on the new anti-money laundering and counter-terrorism financing (AML/CTF) regulations.

The accounting body has acknowledged the positive intent behind the legislation but has raised issues concerning its interpretation and the potential impact on small businesses.

Set to take effect from 1 July 2026, the AML/CTF obligations will be applicable to a variety of professionals and businesses, including those in the legal, real estate, and accounting sectors, among others.

Additionally, certain virtual asset services and intermediary transfer message services will be regulated under AML/CTF from 31 March 2026.

CPA Australia Regulations and Standards lead Belinda Zohrab-McConnell has pointed out the challenges that the new legislation poses, particularly for smaller accounting practices.

She has stressed the importance of clear and definitive guidance to ensure these firms can comply without incurring prohibitive costs, which may ultimately be borne by their clients.

One key issue highlighted by Zohrab-McConnell is the potential discrepancy between the guidance provided by AUSTRAC and the actual legislative text, which could lead to confusion over the classification of certain accounting services under the new regime.

CPA Australia is calling for the timely release of AUSTRAC's Starter Program Kit, intended for sole practitioners and micro firms, which has seen delays and is now expected in late January.

The organisation believes that the kit will be crucial in helping smaller entities understand and prepare for the regulatory changes.

Accountants are being urged by CPA Australia to engage with the guidance material and start the process of ensuring compliance well ahead of the 2026 deadline.

McConnell said: “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.”

Earlier in October 2025, CPA Australia CEO Chris Freeland addressed the findings of an ASIC report on auditor independence and conflicts of interest. Freeland views the report as an impetus for enhancing practices within the audit sector.

"CPA Australia highlights concerns over upcoming AML/CTF regulations " was originally created and published by The Accountant, a GlobalData owned brand.

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