Australia

The Australian Federal Court imposed a $26 million civil penalty on Westpac for breaches of the National Consumer Credit Protection Act and ASIC Act, specifically for inadequate assessment and delayed responses to customer hardship applications. This enforcement action signals increased regulatory scrutiny on financial institutions' hardship processes.

Australia is proposing to remove smaller companies from mandatory climate reporting requirements, reducing compliance burden for SMEs. This amendment signals a shift in regulatory scope that companies should monitor.

Tranche 2 of AUSTRAC's AML/CTF reforms takes effect July 1, 2026, requiring enhanced customer and company screening for Australian businesses. ComplyAdvantage offers a Starter Plan to help meet these obligations, but the regulatory change itself is the new screening requirements.

Australia's government proposed raising revenue and asset thresholds for mandatory audited financial and sustainability reporting, exempting companies with revenue under A$100M and assets under $50M. This amendment to the 2024 corporate sustainability reporting regime aims to reduce regulatory burden by A$10.2 billion annually, but no legislative timeline has been provided.

The AML/CTF Amendment Act 2024 introduces Tranche 2 reforms effective March 2026, requiring Australian gambling firms to adopt outcomes-focused compliance, mandatory proliferation financing risk assessments, and Travel Rule for virtual assets. AUSTRAC enforces with penalties up to $67 million.

AUSTRAC's Tranche 2 requirements take effect July 1, 2026, mandating Australian lawyers and notaries to automate customer due diligence and suspicious activity reporting. ComplyAdvantage's Starter Plan offers a solution, but the regulatory change itself requires action.

Tranche 2 of Australia's AML/CTF reforms takes effect July 1, 2026, requiring accountants and auditors to comply with AUSTRAC obligations including customer due diligence, ongoing monitoring, and UBO mapping. The ComplyAdvantage Starter Plan is a vendor solution to help meet these requirements.

Australia has established a Cyber Incident Review Board to conduct no-fault post-incident reviews of major cyberattacks, focusing on systemic lessons. The board can compel information from entities that decline to participate, signaling increased regulatory scrutiny for critical infrastructure sectors.

Australia has enacted a mandate requiring major retailers to accept cash for purchases under $500. This aims to preserve cash access amid digital payment growth, impacting retailers and consumers.

APRA has issued a warning to banks, insurers, and superannuation trustees about the risks of ungoverned AI, emphasizing the need for enhanced AI governance, model risk management, and operational resilience. Financial institutions must act to align with regulatory expectations.

Australian crypto exchanges must comply with AUSTRAC AML/KYC obligations immediately, not just by the April 2027 deadline. Proactive readiness is critical to avoid penalties.

Australia is implementing regulations effective January 1, 2026, mandating cash acceptance by essential service providers to address financial exclusion concerns amid the digital payments surge. The regulations include exemptions for small businesses and aim to protect vulnerable populations who rely on cash for transactions.

The Reserve Bank of Australia has proposed banning card payment surcharges, which could save consumers A$1.2 billion annually. This regulatory change aims to address consumer protection concerns as cash usage declines and card payments become dominant, requiring merchants to adjust their pricing strategies.

Australia has proposed a new regulatory framework for crypto and digital assets, introducing a licensing structure for crypto exchanges called Digital Asset Platforms (DAPs) with financial standards and custody requirements. This aligns with global trends like the EU's MiCA regulations and aims to foster innovation while ensuring consumer protection.

The Australian Prudential Regulation Authority (APRA) has phased out bank hybrids, previously popular investment vehicles for retirement income transfer. This regulatory change has prompted investors to shift to less risky fixed-income bonds and necessitates investor education on retirement asset management.

ASIC's ASX Inquiry Panel has published a Final Report criticizing the Australian Securities Exchange's technology management, highlighting significant governance and operational failures. This enforcement action signals increased regulatory scrutiny for financial market infrastructure, with recommendations for enhanced compliance frameworks and stricter oversight.

Australia's OAIC has released an exposure draft of the Privacy (Children's Online Privacy) Code 2026, establishing stricter standards for handling children's personal information. The code mandates parental consent for children under 15, enhanced age verification, child-friendly privacy policies, and privacy impact assessments for high-risk processing. Businesses must prepare for compliance by the December 2026 registration deadline.

Australia has enacted comprehensive digital asset regulation requiring crypto exchanges and custody providers to obtain Australian Financial Services Licenses (AFSL) within six months. The legislation creates two new regulated categories under the Corporations Act and mandates compliance with financial services rules including client asset safeguarding and disclosure requirements.

The Reserve Bank of Australia is implementing caps on interchange fees and banning merchant surcharging to enhance competition in the payments sector. These regulatory measures aim to reduce transaction costs for merchants and consumers, impacting compliance requirements for financial institutions and businesses in Australia.

The Australian Senate Economics Legislation Committee has endorsed legislation to integrate cryptocurrency platforms and custody providers into the existing financial services regulatory framework. The bill creates a licensing regime for digital token managers, requiring firms without an Australian Financial Services License to obtain authorization within six months of passage.