AML/CTF Amendment Act 2024 – Privacy Act, 1988 applies to Tranche 2 entities – no more small business exemption.

“Modernisation & Simplification” (cough).

ALL reporting entities under the AML Act, yes all, are subject to the Privacy Act, 1988.

The small business exemption DOES NOT APPLY to a reporting entity under the AML Act.

The consequence is that all new Tranche 2 reporting entities – lawyers, accountants, real estate agents – who are not currently subject to the Privacy Act will be from the date that entity commences to provide designated services – basically, 1 July 2026.

So, on top of having to implement an AML-CTF Program those entities will have to comply with the Australian Privacy Principles from that date. Oh Joy!

Privacy Act, 1988 Compliation #102 2025-02-01 – Sect 6E

6E Small business operator treated as organisation
Small business operator that is a reporting entity
(1A) If a small business operator is a reporting entity or an authorised agent of a reporting entity because of anything done in the course of a small business carried on by the small business operator, this Act applies, with the prescribed modifications (if any), in relation to the activities carried on by the small business operator for the purposes of, or in connection with, activities relating to:
(a) the Anti-Money Laundering and Counter-Terrorism Financing Act 2006; or
(b) regulations or AML/CTF Rules under that Act;
as if the small business operator were an organisation.

Note: The regulations may prescribe different modifications of the Act for different small business operators. See subsection 33(3A) of the Acts Interpretation Act 1901.