Important Legislation Alerts

I began drafting this horizon scan in January 2025, dedicating hours to researching legal and regulatory developments, as well as compliance trends. After a week of readings and analysis, I paused. Much of what I was reading felt reactive rather than forward-looking, nothing of what I was looking for, all focused on immediate threats rather than strategic preparation. The landscape was full of warnings but light on new thinking and practical guidance for what was actually coming. Admittedly, this was hard for anyone to do as AI was complicating outlooks while laws were simultaneously changing.

Then the Trump administration's return complicated the global compliance picture. While claims about FCPA enforcement being "put on hold" or AML/CTF being "deprioritised" in the US require careful verification, enforcement priorities can shift but rarely stop entirely. There's no doubt that changing US attitudes toward international financial crime cooperation affects the global landscape. What's clear is that Australia cannot rely on consistent international enforcement alignment and must chart its own course.

But now we do have a ticking clock. AUSTRAC dropped the final AML/CTF Rules on Friday, August 29, 2025, transforming abstract warnings into concrete obligations. Some aspects of financial crime regulation have crystallised into hard deadlines and specific requirements. At the same time, the spectre of AI continues to evolve with implications that arguably extrapolate beyond anything we've seen in history.

So here we go, finally, an attempt to provide a clear-eyed analysis of what's actually happening in Australia's financial crime landscape as we approach 2026, regardless of what's happening elsewhere.

Bottom Line Up Front

Australia is forging ahead with its most significant expansion of financial crime regulation in decades, despite shifting international dynamics. It has taken years to get to this point, but far less time remains to get to the next. Professional services face hard deadlines in 2026, while new penalty regimes across privacy, bribery, and modern slavery create immediate compliance imperatives.

A. Key Regulatory Developments:

A1. Professional Services Integration

Approximately 90,000 businesses, lawyers, accountants, real estate agents, trust and company service providers, and precious metals dealers must register with AUSTRAC by March 31, 2026, and have fully operational AML/CTF programs by July 1, 2026.

A2. Enhanced Anti-Bribery Laws

Since September 2024, Australia's "failure to prevent" foreign bribery offence creates criminal liability for companies whose associates pay bribes, regardless of corporate knowledge. Penalties reach A$50 million, three times the benefit, or 10% of annual turnover.

A3. Privacy Law Revolution

Enhanced penalties now reach A$50 million, 30% of adjusted turnover, or three times the benefit obtained. A new statutory tort for serious privacy invasions allows individuals to sue for up to A$480,000 in damages.

A4. Modern Slavery Accountability

The regime is transitioning from reporting requirements to enforcement, with civil penalties coming, and Australia's first Anti-Slavery Commissioner actively pursuing non-compliant companies.

A5. Australia's Independent Course

Multiple factors underscore Australia's commitment to proceed regardless of international developments:

• Regulatory certainty     despite global uncertainty in enforcement cooperation
• Domestic agency coordination     across AUSTRAC, ASIC, APRA, ACCC, OAIC, and NACC
• Personal liability frameworks     through the Financial Accountability Regime
• Technology-driven solutions to      compensate for potential gaps in international cooperation

A6. The AI Wild Card

Artificial intelligence presents both opportunities and threats that evolve faster than regulation. Criminals use AI for sophisticated fraud schemes and deepfakes, while compliance teams explore AI-powered detection and monitoring systems. The technology offers significant potential but requires robust human oversight and governance frameworks.

B. Critical Deadlines and Implications

B1. Immediate Priorities:

• March 31, 2026: Professional services registration deadline
• July 1, 2026: Full AML/CTF program implementation required
• Late 2025: Expected introduction of comprehensive Privacy Act reforms
• Ongoing: Modern slavery due diligence expectations intensifying

B2. Strategic Response Framework

Organisations must build programs that are:

• Self-reliant:  Independent of international cooperation variations
• Technology-enhanced:  Leveraging AI and analytics while maintaining human oversight
• Adaptable:  Capable of adjusting to both local requirements and global changes
• Comprehensive:   Addressing overlapping regulatory requirements holistically

The Reality Check

Australia's financial crime landscape is charting its own course. While international cooperation has traditionally underpinned efforts to combat financial crime, Australia is developing systems that can function independently if needed. This creates unique challenges but also provides competitive advantages for businesses with robust, adaptable compliance programs.

The convergence of expanded regulation, technological advancement, and potential international fragmentation requires sophisticated responses. Organisations that build robust, adaptable compliance programs will thrive. Those hoping international developments might ease local obligations will be disappointed.

Welcome to financial crime compliance in 2026. Australia's course is set, regardless of global currents. The key is building programs that are robust enough to meet local requirements while being flexible enough to navigate international complexity.