New AML/CTF Rules: What Referral Partners Need to Know

Australia's biggest AML/CTF overhaul in nearly two decades took effect on 1 July 2026. The Finance Brokers Association of Australia is pushing AUSTRAC for clarity on whether commercial asset finance broking falls within scope. If you refer finance leads to a broker, here's what you need to understand.

What actually changed on 1 July

The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act extended AUSTRAC obligations to "tranche 2" entities. That's accountants, lawyers, real estate agents, conveyancers, trust and company service providers, and dealers in precious metals and stones.

These businesses must now enrol with AUSTRAC (deadline: 29 July 2026), appoint an AML/CTF compliance officer, implement a written program covering risk assessment and customer due diligence, and keep records for seven years. AUSTRAC has said it doesn't expect "perfection immediately," but the obligations are live.

The extensions target industries where money laundering risk has been identified but wasn't previously regulated. Australia was one of the last developed economies without tranche 2 coverage.

Three buckets: where you sit depends on what you do

1. Mortgage brokers: no change

If you hold a credit licence and broker home loans, you're already an AUSTRAC reporting entity. The tranche 2 reforms don't add new obligations for you. The MFAA has confirmed this. Your existing AML/CTF program and customer identification procedures continue to apply.

The main update for existing reporting entities is a revised customer due diligence framework that rolled out on 31 March 2026, with a three-year transition period. You can continue using your current procedures while you migrate.

2. Accountants and financial advisers: you're in

If you're an accountant, financial adviser, or trust and company service provider, you are a tranche 2 entity. Full stop. If you assist customers with financing transactions, arrange access to financial products, or participate in transactions involving their assets, you're providing a designated service and AUSTRAC obligations apply.

This means customer identification, record-keeping, suspicious matter reporting, and a written AML/CTF program. The compliance bar is real, and the deadline to enrol is 29 July.

3. Commercial asset finance brokers: the grey zone

This is where the industry is watching closely. FBAA regulatory compliance specialist David Carson has said the way AUSTRAC's guidance is drafted "would appear that commercial asset finance broking could be defined as a designated service which would bring it under AML/CTF rules."

But the FBAA doesn't believe that was the legislative intent. CEO Leo Gagic has told brokers not to rush into major compliance changes, while confirming there is genuine uncertainty. The FBAA has requested an urgent meeting with AUSTRAC to get clarity.

Until that clarity arrives, the commercial asset finance broking channel sits in a grey zone. The FBAA's position is constructive: they support the AML/CTF framework and want a clear answer, not a fight.

The line that matters: referring vs arranging

For referral partners, the critical distinction isn't about your industry. It's about what you actually do.

Simple referral means pointing a customer to a finance provider without further involvement. You introduce them and step back. Under the guidance published so far, passive referrals are generally outside scope.

Arranging credit means you're involved in the process. You influence product selection, submit applications, or receive benefits tied to the transaction outcome. If your actions cause the deal to happen in the way it does, you are likely providing a designated service.

The legal guidance describes this as a "high-risk boundary area." If your referral model involves anything beyond a warm introduction, it's worth understanding exactly where the line sits.

What this means for partners who refer through a broker

If you're a car dealer, equipment supplier, or accountant who refers customers to Emu Money, here's the practical position.

You refer. We broker. That's not just a commercial arrangement. It's a compliance structure. Emu Money handles the credit process, the lender relationship, the compliance obligations, and the settlement. Your role is the introduction.

That structure, where the partner refers and the broker arranges, is exactly the distinction the new rules draw. A clean referral model keeps you on the right side of the line without adding compliance overhead to your business.

If your current process involves anything more than an introduction, now is a good time to review it.

What to do right now

If you're an accountant or adviser: Enrol with AUSTRAC before 29 July. Appoint a compliance officer. Start building your AML/CTF program. AUSTRAC has published guidance for newly regulated businesses, and the three-year transition for customer due diligence gives you time to implement properly.

If you're a dealer or supplier referring finance: Check that your referral process is a clean introduction, not an arrangement. If you're selecting products, submitting applications, or receiving transaction-linked fees directly from lenders, talk to your compliance adviser.

If you're a commercial asset finance broker: Watch the FBAA's engagement with AUSTRAC. Don't overreact, but don't ignore it either. The answer matters and it's coming.

Interested in a referral model that keeps the compliance where it belongs? Talk to Emu Money's partnerships team about how our partner structure works. Become a partner