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1. Overview of the ReformsSignificant changes to Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime are taking effect under the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (the Amendment Act) and the Anti-Money Laundering and Counter-Terrorism Financing Rules 2025 (the Rules). These reforms represent a fundamental shift toward an outcomes-based, risk-oriented framework, aligned with international standards set by the Financial Action Task Force.The core pillars of the reform include:• Stronger governance and oversight, with clearer accountability for the board and senior management;• Expanded risk assessments, including explicit coverage of Proliferation Financing (PF) risk; and• New transitional measures, including a three-year transition period for initial Customer Due Diligence (CDD) obligations.2. Who Do These Reforms Apply To?The AML/CTF reforms affect a broad range of businesses. If your business provides any of the designated services regulated under the AML/CTF Act, you are a “reporting entity” and must comply with the reformed regime.Existing Reporting Entities (Tranche 1)Entities already regulated under the AML/CTF Act must comply with the reformed regime from 31 March 2026. These include:• banks, building societies, and credit unions;• life insurers and friendly societies;• securities dealers, futures brokers, and managed investment scheme operators;• remittance service providers;• gambling service providers, including casinos and online wagering operators;• bullion dealers; and• virtual asset service providers (formerly digital currency exchange providers).Newly Regulated Entities (Tranche 2)A major expansion of the AML/CTF regime will bring approximately 90,000 new businesses under AUSTRAC regulation from 1 July 2026. These “Tranche 2” entities include:• lawyers and law practices;• accountants;• real estate agents;• trust and company service providers; and• dealers in precious metals and stones (jewellers).Tranche 2 entities will be able to enrol with AUSTRAC from 31 March 2026 and must be enrolled by 29 July 2026. AUSTRAC has released sector-specific guidance and program starter kits to assist newly regulated entities in preparing for their obligations.3. Governance and Oversight: New Statutory ObligationsA central feature of the reforms is the introduction of defined roles for the “Governing Body” and “Senior Manager”, together with heightened expectations for effective internal controls.Governing BodyThe “Governing Body” refers to the individuals or body (such as a Board of Directors) with primary responsibility for the governance of the reporting entity. The Governing Body is expected to maintain ongoing oversight of AML/CTF compliance and be sufficiently informed of Money Laundering (ML), Terrorism Financing (TF), and Proliferation Financing (PF) risks to ensure that the AML/CTF Program is identifying and mitigating those risks in practice.Under the Amendment Act, the Governing Body has proactive obligations to provide “appropriate ongoing oversight”. The Australian Transaction Reports and Analysis Centre (AUSTRAC) has indicated that this may be demonstrated by:• including AML/CTF compliance and ML/TF/PF risk as a regular standing agenda item in board or management meetings;• reviewing relevant matters in AML/CTF compliance officer and independent evaluation reports;• questioning how the business will address any adverse findings in those reports; and• interrogating the root causes of non-compliance and the effectiveness of existing controls.Senior ManagerA “Senior Manager” is an individual who makes, or participates in making, decisions affecting the whole or a substantial part of the reporting entity. The reforms sharpen accountability by making them legally responsible for approving the ML/TF/PF Risk Assessment, AML/CTF policies, and any material updates to those documents.The Senior Manager's approval is also required for high-risk individual matters, including:• providing designated services where politically exposed persons are involved; or • establishing or maintaining a nested services relationship.Both of these roles must be held by individuals with greater active governance, oversight and executive decision-making responsibility. 4. Proliferation Financing (PF)A key reform is the explicit requirement for reporting entities to identify, assess, and manage PF risk. PF involves financing activities linked to the development or acquisition of weapons of mass destruction. While many institutions are already familiar with sanctions compliance and screening requirements, the reforms clarify that PF must be treated as a distinct AML/CTF risk category.PF should be integrated into the ML/TF/PF Risk Assessment as part of routine risk management. For many entities, this will require refining existing methodologies to ensure PF is assessed with sufficient specificity (for example, through jurisdictional exposure, transaction typologies, and counterparty risk indicators), rather than being subsumed within broader AML/CTF risk settings.Where an entity reasonably assesses PF risk as low, a standalone Counter-Proliferation Financing policy is not required, provided the risk is appropriately managed through existing ML/TF controls. However, any low-risk assessment must be properly documented to satisfy AUSTRAC’s expectations for an auditable process. If PF is not addressed at all in the Risk Assessment and AML/CTF Program documentation, the framework may be non-compliant. 5. Implementation Timeline and Transitional MeasuresThe compliance deadline for existing reporting entities is 31 March 2026. Entities should use the remaining time to finalise necessary structural and governance updates.Three-Year Transition for Initial CDDOn 22 January 2026, AUSTRAC announced that existing reporting entities will be granted an additional three years (i.e. until 30 March 2029) to comply with the new initial CDD obligations. During this period, entities may choose either to:• continue applying their existing Applicable Customer Identification Procedures when onboarding new customers; or • transition to the reformed initial CDD obligations at any time before 30 March 2029.Entities must apply whichever framework they choose consistently across all new customers and customer types. Once an entity formally transitions to the reformed CDD obligations, it must apply the new requirements from that point forward.The three-year transition applies only to initial CDD (i.e. new customer onboarding). Ongoing CDD obligations under section 30 of the AML/CTF Act must be implemented from 31 March 2026 with no deferral.Other Transitional MeasuresAUSTRAC has also confirmed the following transitional arrangements:• existing reporting entities have until 30 May 2026 to notify AUSTRAC of their AML/CTF Compliance Officer; • staggered deadlines will apply for entities that have recently completed an independent review; and • on 9 February 2026, AUSTRAC released exposure draft amendments to the AML/CTF Rules for industry consultation. The transitional rules being developed by the Department of Home Affairs under Schedule 12 of the Amendment Act are expected to be finalised shortly. 6. Your Compliance Readiness Checklist With the 31 March 2026 deadline imminent, each reporting entity should assess its current position against the following:(i) Integrating PF as a distinct risk category in your ML/TF/PF Risk Assessment, ensuring the assessment methodology is sufficiently specific to identify threats;(ii) Clearly designate the Senior Manager responsible for statutory approvals of policies and risk assessments and define the Governing Body's duty to exercise “appropriate ongoing oversight”;(iii) Assess whether the AML/CTF Compliance Officer meets the new statutory criteria, including being an Australian resident (where applicable), a fit and proper person, and possessing sufficient authority and independence;(iv) Refresh AML/CTF Programs and controls to align with the updated Rules and the outcomes-based framework;(v) Align evaluation schedules with the new statutory requirement to test Program effectiveness at least every three years, noting that any adverse findings now trigger an immediate review of the Risk Assessment;(vi) Implement ongoing CDD processes under section 30 of the AML/CTF Act; and(vii) Document transitional implementation steps, including approvals, milestones, and remediation activity.The immediate task for existing reporting entities is not to start from scratch, but to ensure that existing frameworks are updated to meet the new expectations in governance accountability, PF risk assessment, and CDD obligations.AUSTRAC has made clear that its approach to compliance will be “pragmatic and proportionate” but has also signalled that entities that fail to manage their ML/TF risks or ignore their obligations will face regulatory action. Having a documented implementation plan in place by 31 March 2026 is essential. 7. How We Can Assist H & H Lawyers has extensive experience advising reporting entities on AML/CTF compliance, risk assessments, and governance frameworks. We understand the practical challenges these reforms present, particularly for businesses operating across multiple jurisdictions.Our team can assist with:• reviewing and updating your ML/TF/PF Risk Assessments and AML/CTF Programs;• advising on governance structures, including the designation of Senior Manager and Governing Body roles;• assessing AML/CTF Compliance Officer suitability under the new statutory criteria;• preparing documented implementation plans and transitional strategies; and• providing ongoing compliance support as the reforms take full effect.To discuss how these reforms affect your business, please do not hesitate to contact us. DisclaimerThis newsletter is intended as general information only and does not constitute legal advice. The content is current as at 23 February 2026. Readers should seek professional advice tailored to their specific circumstances before making compliance decisions. To the extent permitted by law, H & H Lawyers excludes all liability for any loss or damage arising from reliance on the information contained in this newsletter.
27 Feb 2026
Firm News
Australia remains a premier destination for international investors seeking to diversify their global portfolios. This resilience is underpinned by a stable fiscal environment, an expanding domestic market, and a demonstrated capacity to adapt to shifting global economic tailwinds.Post-pandemic, the Australian economy has exhibited a robust recovery, driven by an open and flexible market structure. Looking ahead, the trajectory remains positive, with projected growth in consumption, investment, and exports, alongside a strengthening labour market.However, the complexity of the Australian regulatory landscape necessitates a systematic approach. Successful market entry and ongoing operations require precise execution across several critical pillars:- Corporate Governance: Selection of optimal business and investment structures.- Employment & Industrial Relations: Navigating complex labour management and human resources frameworks.- Taxation & Compliance: Ensuring adherence to evolving fiscal policies and regulatory requirements.To support our clients in managing these complexities, H & H Lawyers has released the Doing Business in Australia Guidebook (FY25–26). Updated with the latest legislative developments and real-world practice insights, this guide serves as a strategic resource for both new entrants and established operators.We invite you to utilise this guide as a foundational reference.
23 Feb 2026
Firm News
H & H Lawyers is proud to announce its formal induction into LEGUS International, a premier global network of high-quality independent law firms.Membership is by invitation only, following a rigorous vetting process that identifies firms demonstrating exceptional legal expertise and commercial acumen. For more than three decades, H & H Lawyers has focused on the intersection of international legal systems. With our Sydney and Melbourne teams now integrated into the LEGUS network, we offer our clients enhanced dual-capability services: Facilitating Inbound Investment We provide international corporations and global law firms with the specialised local knowledge required to invest and operate successfully within Australia. Our team acts as a strategic partner, bridging the gap between foreign legal requirements and Australian regulatory frameworks. Supporting Outbound Expansion Our clients now benefit from immediate, high-level introductions to trusted legal partners in over 35 countries. This allows us to facilitate our clients’ international growth with the confidence that their interests are protected by vetted, top-tier counsel in foreign jurisdictions. James Jung, Special Counsel, noted: "Our membership in LEGUS aligns perfectly with our firm’s mission to bridge legal systems and foster global relationships. This partnership ensures that our clients have access to the same calibre of legal expertise and local insight internationally as they receive from us in Australia." This affiliation marks a significant milestone in our firm’s 30-year history, further solidifying H & H Lawyers’ position as a premier choice for cross-border legal matters.
11 Feb 2026
Firm News
In December 2025, we had the privilege of hosting a delegation of senior lawyers fromVietnam Electricity (EVN) and its subsidiaries. The visit provided an important opportunity to discuss the changing landscape of inbound investment into Australia, particularly as ESG frameworks increasingly shape global capital decisions.Our James Jung, Dr Paul Govind and Kenneth Hong led focused discussions on the legal and regulatory requirements for international entrants in Australia's "Net Zero" era. While energy remains central to the Australia–Vietnam relationship, our dialogue expanded to the practical realities of operating in a market driven by mandatory climate disclosures and ambitious decarbonisation policy.Key themes included:- ESG as a Gateway: How Australia's emerging ESG and climate-reporting regime is influencing opportunities for international state-owned enterprises.- Japan & Korea Insights: Lessons from the transition of Japanese and Korean investors from traditional gas projects toward green hydrogen and large-scale renewables.- Inbound Pathways: The legal frameworks and governance structures required to navigate Australian infrastructure and energy projects.Australia's role in the regional energy transition continues to mature, and we remain committed to supporting organisations like EVN as they pursue strategic opportunities aligned with Australia's high ESG standards.We thank the EVN delegation for a productive exchange and look forward to continuing these important conversations.
24 Dec 2025
Seminar
On 27 November 2025, H & H Lawyers was delighted to present at the “Doing Business in Australia” seminar in Seoul, co-hosted by Korea International Trade Association (KITA) and the Australian Embassy. Our Managing Partner, Kenneth Hong, delivered a session on the key legal issues Korean companies should consider when entering the Australian market—FIRB approvals, market-entry structures, ACL and competition law compliance, employment obligations, tax considerations, and recent visa reforms. With KAFTA now supporting more than a decade of strengthened economic cooperation between Australia and Korea, we continue to see strong interest from Korean businesses seeking long-term growth opportunities in Australia. H & H Lawyers specialises in advising inbound investors and guiding clients through Australia’s regulatory landscape with clear and commercially focused legal support. We thank the organisers and all participants for an excellent seminar and discussion. If your organisation is considering expansion into Australia, our team would be pleased to assist.
27 Nov 2025
Firm News
We are proud to share that our lawyers - Ken Hong, John Kim, James Jung, Bella Cho, and Laura Oh - attended the 32nd Annual Conference of the International Association of Korean Lawyers (IAKL), hosted at Korea University in Seoul last week. During the conference: Ken Hong presented on “The Braiding of Legal Education and Legal Professions Across Multiple Jurisdictions”. Bella Cho spoke on “How to Deal with ESG Factors Embedded in Business”. We are also delighted to announce that our Managing Partner, Ken Hong was honoured with the prestigious Moon-In Gu Award at the Gala Dinner. This award, named in honour of Dr. Moon In Koo, founder of IAKL and a former President of both the Korea and Seoul Bar Associations, is one of the association’s highest distinctions. It recognises lawyers who have made exceptional contributions to the global Korean legal community, advancing legal professionalism, supporting overseas Koreans, and strengthening cross-border collaboration. Reflecting on the award, Ken commented: “It is an incredible honour to be recognised with the Moon In Gu Award. Dr. Moon’s legacy continues to inspire lawyers worldwide, and I am humbled to be part of that tradition. This recognition strengthens my commitment to connecting legal communities across borders.” Ken’s recognition reflects not only his professional achievements but also his enduring commitment to fostering international legal cooperation. The award ceremony was covered in Legal Times, which you can read here. The IAKL Conference once again provided an invaluable platform for legal professionals from around the world to exchange insights and build enduring relationships across jurisdictions.
03 Oct 2025