As previously reported, these new laws are designed to ensure Australia’s AML/CTF regime can effectively deter, detect and disrupt crimes such as money laundering and terrorism financing. Different obligations for different industries come into effect on a staggered basis, with the relevant obligations for dealers in precious diamonds and gemstones, metals, and products commencing on 1 July 2026.
Any business that purchases or sells precious metals, precious gemstones, or precious diamonds may be regulated if it wishes to pay or accept $10,000 or more in cash or virtual assets.
According to Rebecca Hegarty, a partner of law firm Bartier Perry, more than 2,500 businesses involved with the jewellery trade are still ‘in denial’ about the massive impact this will have on the industry.
“These laws have been in place since 2006 for a range of financial institutions, bullion dealers, insurance companies, superannuation funds, money remitters and gambling service providers who would be well versed in the severe financial and reputational risks of not adhering to them,” Hegarty explained.
“Yes, there will be some leeway for these businesses to get things right under the legislation, but that will not last forever, and as we’ve seen with the multimillions in fines handed out to banks and casinos in recent years, the cost of getting it wrong is very high.
“We expect money launderers will be actively seeking out smaller jewellery businesses in the possibly justified hope they won’t have the knowledge of the laws or the systems in place to question transactions.”
Parliament passed the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Amendment Act 2024 in December 2024. By 1 July 2026, relevant businesses will need to have an AML/CTF Compliance Officer, Policy, Program and Procedures.
These businesses should also have provided training to all staff on the obligations and how to identify and report suspicious activity, and there are record-keeping requirements for seven years from next year.
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