AUSTRAC names ‘high-risk’ sector targets in financial crime fight

Yasmine Raso

Senior Journalist

18 July 2025

Real estate agents, lawyers, accountants, and trust and company service providers are just a few of the ‘tranche 2’ industries to be flagged by AUSTRAC as part of their financial crime ‘crackdown’ over the next financial year.

The agency released its priorities for the 2025-26 financial year yesterday, with plans to enforce anti-money laundering and counter-terrorism financing (AML/CTF) obligations on the next tranche of businesses by 1 July 2026, including:

• real estate professionals – such as real estate agents, buyers’ agents and property developers;
• lawyers;
• conveyances;
• accountants;
• trust and company service providers; and
• dealers in precious stones, metals and products.

Businesses operating in sectors identified by AUSTRAC as “high-risk” including virtual asset-related services, digital currencies and cash, will also become a key regulatory focus from 31 March next year.

AUSTRAC chief executive, Brendan Thomas, confirmed the agency was also adjusting its regulatory process to focus more on overseeing activities occurring within sectors as a whole rather than by individual entities.

This comes as AUSTRAC works towards it goal of covering 80,000 businesses under its AML/CTF regime, ahead of “major legislative reforms” set to come into effect from July next year.

“This year marks a regulatory shift – from regulation that primarily checks for compliance to one focussed on substantive risks and harms,” he said.

“AUSTRAC will look at risk and behaviour at an industry and sector level rather than focussing solely on individual entities.

“We’re working with existing and new businesses to ensure they’re informed about what’s expected of them ahead of the changes.

“We will be more direct in communicating what we expect to see from sectors, and clearer about specific failings and risks we want addressed sector-wide.”

Thomas also indicated that the virtual asset and cash sectors designated “high-risk” will come under intensified scrutiny over the next financial year, as the agency looks to grow its intelligence function.

“We are also focussing efforts where the risk of harm is greatest, for example in digital currencies, which allow funds to move across borders quickly, cheaply and virtually anonymously,” he said.

“Cash is also highly susceptible to money laundering because it is anonymous, accessible and widely accepted. While the use of cash in Australia is declining, more than $100 billion is still in circulation.

“We see money laundering risks play out in cash intensive businesses as well as through digital currency exchanges and other virtual asset service providers that facilitate instantaneous global transfers.”

Thomas urged entities to be “proactive” in their existing or impending inclusion under the AML/CTF regime, as AUSTRAC prepares for the “most ambitious overhaul of Australia’s anti-money laundering laws in a generation” and

“We’re determined to get it right,” he said.

“Whether you’re already part of the regime or preparing to come into it, we want you to be proactive in preparing and making sustained progress towards compliance.

“As new sectors come on the scene, they will look to established businesses for examples of effective management of money laundering risk, so this is an opportunity to understand our priorities, improve compliance and help us lift standards across the board.”