Australia’s financial crime framework is entering a period of profound change, with AML and counter-terrorism financing reforms set to reshape how institutions manage risk. As explored in recent industry discussions led by SymphonyAI, the reforms—taking effect from 31 March 2026 for existing entities and July 2026 for newly regulated tranche 2 businesses— it determines whether these changes will be seen as a checkbox compliance activity or an opportunity to modernise financial crime capabilities.
The discussion, hosted by SymphonyAI in collaboration with Deloitte and AMP, reinforced a consistent message. Institutions that succeed will be those that view regulatory change as an opportunity to build more effective, intelligence-driven approaches to financial crime prevention, rather than relying on incremental fixes.
Australia’s regulatory framework is evolving rapidly. The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 introduces outcomes-based obligations that require organisations to demonstrate effectiveness, not just adherence to process.
Deloitte partner and Australia and APAC financial crime lead Lisa Dobbin said, “This is an opportunity for generational transformation of the way we do financial crime. I see it as an invitation to take advantage of what we’ve theoretically always had, which is a risk-based regime, but to really make that real in a way that’s going to create long-term value.”
From July 2026, around 80,000 new businesses across tranche 2 sectors—including real estate, legal services, accounting, and precious metals—will fall within the AML/CTF regime. For existing reporting entities, the move to outcomes-based supervision raises expectations around proof, performance, and real-world impact, pushing firms away from checkbox compliance.
Industry readiness remains uneven. Dobbin described a “mixed bag”, with some large institutions already well advanced in transformation programmes, while others are constrained by budget pressures and delivery timelines. For organisations still addressing historic weaknesses, immediate compliance remains the priority, even as leadership teams acknowledge the longer-term opportunity reforms present.
Technology, particularly AI, is emerging as the main enabler of this shift. SymphonyAI financial crime and compliance SME for APAC Craig Robertson said, “You need to get away from process, and you need to get closer to risk management.” He warned that organisations reliant on large teams performing low-value, manual tasks will struggle to evolve, consuming time and increasing operational risk without improving outcomes.
Robertson emphasised that automation is not about removing human judgement but redirecting it. “It’s not all about automation, but that will be a key unlocker to divert capacity to do other things,” he said. This aligns with signals from AUSTRAC, whose CEO has encouraged smarter investment in intelligence and automation rather than simply expanding headcount.
When prioritising investment, Robertson was clear that detection capability must come first. “If I’ve got to pick one of the three, I’m going to say detection,” he said, noting that automation enables scale, while customer experience must be embedded across all initiatives rather than treated as a standalone goal.
As deadlines approach, financial institutions must balance urgency with sustainability. Short-term fixes may meet regulatory requirements but risk embedding inefficiencies that limit future growth. The reform moment offers a rare opportunity to move from reactive controls towards proactive, intelligence-led financial crime prevention.
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