2026: A year of AML transformation for Australia and New Zealand

2026 brings unprecedented change to AML compliance in Australia and New Zealand.

This month, we examine what reporting entities need to know about Australia's 31 March reforms, Tranche 2 implementation, New Zealand's regulatory consolidation, and the approaching FATF mutual evaluation.

The message from regulators is clear: they expect progress, not perfection. But "progress" means demonstrating your programme actually works, not just that it exists.

In this episode:

- Australia's 31 March reforms – The shift from tick-box compliance to risk-based, outcomes-focused programmes. AUSTRAC expects evidence of meaningful progress, and will not tolerate entities that made no attempt to implement required changes.

- Tranche 2 implementation – Lawyers, accountants, real estate agents, and precious metals dealers enter the regime. Enrolment opens 31 March, compliance obligations begin 1 July. Lessons from New Zealand's experience show it takes time to properly embed effective programmes.

- New Zealand's single supervisor model – Moving from three supervisors to the Department of Internal Affairs on 1 July 2026. Reporting entities moving supervisor should review their programmes with fresh eyes.

- Australia's FATF mutual evaluation – Beginning late 2026, the fifth round focuses on effectiveness, not just whether regulations exist. Every reporting entity needs to demonstrate their programme actually works.

The Tranche 2 changes take effect only months before Australia's mutual evaluation. FATF will expect reporting entities have implemented changes and are showing effectiveness. Time is running short for those who haven't started.

Hosted by: Jing Zhang, Business Development Manager and Colin Dixon, CAMS-certified AML Solutions Specialist at ThirdEye Colin has been with ThirdEye since 2012, bringing extensive experience helping clients strengthen their financial crime prevention programmes.

Links mentioned: AUSTRAC guidance: https://www.austrac.gov.au/business/core-guidance

FATF Malaysia report: https://www.fatf-gafi.org/content/dam/fatf-gafi/mer/mer-malaysia-2025.pdf.coredownload.inline.pdf

FATF Belgium report: https://www.fatf-gafi.org/content/dam/fatf-gafi/mer/Mutual-Evaluation-Belgium-2025.pdf.coredownload.inline.pdf

Read the full blog post: https://jadethirdeye.com/view/2026-year-of-aml-transformation-australia-new-zealand/

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