The Act and Rules
The AML/CTF Act sets the legal framework and duties. The AML/CTF Rules 2025 add detail under the Act. AUSTRAC guidance explains its interpretation and expectations. Read the sources together for the service and customer in question.
Section 229 permits the AUSTRAC CEO to make Rules on matters that other Act provisions permit or require. The Rules are legislative instruments.
Sources: Federal Register of Legislation: Section 229; Federal Register of Legislation: Section 1-3; AUSTRAC: The difference between the Act, Rules and guidance; closing limitations.
AUSTRAC guidance
AUSTRAC guidance describes its interpretation of duties and its expectations for businesses. Courts decide how the law applies in legal proceedings.
Guidance includes examples and suggestions. These do not cover every possible case. The relevant legal conditions remain necessary.
Source: AUSTRAC: The difference between the Act, Rules and guidance; closing limitations.
- Act
Contains statutory duties and powers.
- Rules
Give detail authorised by the Act.
- AUSTRAC guidance
Explains AUSTRAC’s interpretation and expectations.
The three sources have different roles
Read each source for its role. Courts decide how the law applies in legal proceedings.
Separate evidence questions. An answer to one does not settle the others.
Expectations require attention
AUSTRAC distinguishes obligations, expectations and suggestions in its wording. It can ask a business to show how an alternative to an expectation meets its duties.
A business cannot assume that all AUSTRAC information is optional. The Act requires certain reporting entities to consider relevant AUSTRAC risk information.
Sources: AUSTRAC: Understanding the language we use; Federal Register of Legislation: Section 26C(3)(e).
Invented example: a source comparison in practice
A fictional Australian legal practice reads a company CDD example. Its customer has a different ownership structure.
The practice asks three questions. Which Act provision sets the duty? Which Rules provision supplies its conditions? What does AUSTRAC guidance explain about applying it? It records the relevant provision and the customer facts. This is a suggested reading method.
A copied example cannot decide every customer case. The initial CDD guide explains the practical checks.
Source: AUSTRAC: Support to use the guidance; closing limitations.
Can I ignore AUSTRAC guidance?
Do not assume it is all optional. AUSTRAC separates obligations, expectations and suggestions. If you depart from an expectation, it may ask how your approach meets your duties. Relevant AUSTRAC risk information can also fall within the business-assessment duty.
Sources: AUSTRAC: Understanding the language we use; Federal Register of Legislation: Section 26C(3)(e).
Does following an example confirm compliance?
No. AUSTRAC examples do not cover every case. Check the legal conditions against your own service and customer. Seek advice where the application is unclear.
Sources: AUSTRAC: The difference between the Act, Rules and guidance; closing limitations; AUSTRAC: Support to use the guidance; closing limitations.