Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2026; Second Reading

Gregg argued that organised crime had become more sophisticated and borderless, necessitating agile legislative responses. Gregg cited cryptocurrency ATMs as a primary example of high-risk mechanisms facilitating scams and money laundering, noting their rapid proliferation in Australia. Gregg emphasised that the bill provided necessary tools for AUSTRAC to intervene quickly while maintaining safeguards and consultation requirements.

Wallace described the severe impact of scams on older Australians, citing specific statistics on crypto ATM usage and transaction values linked to criminal activity. Wallace supported the bill's aim to close regulatory gaps but reiterated the coalition's demand for four key improvements: ministerial accountability, transparency in consultation, a deferred commencement date, and immediate action on crypto ATMs. Wallace stated the coalition would support the bill's passage in the House to facilitate Senate amendments.

Campbell highlighted the convergence of national security threats, including terrorism and organised crime, which are underpinned by money laundering. Campbell explained that the bill targeted high-risk mechanisms like crypto ATMs, which reduce transaction traceability compared to bank-based purchases. Campbell noted that the legislation included safeguards, such as consultation periods and statutory factors for decision-making, to protect legitimate business activities.

Jarrett argued that money laundering fuels criminal enterprises and undermines democratic institutions, requiring robust regulatory responses. Jarrett cited data showing a significant proportion of crypto ATM users were scam victims or money mules, illustrating the urgent need for reform. Jarrett stated the bill provided AUSTRAC with flexible, risk-based powers to restrict high-risk mechanisms while maintaining accountability through legislative instruments.

McCormack acknowledged the coalition's support for the bill while emphasising the need to prevent government overreach. McCormack discussed the prevalence of scams targeting vulnerable individuals, particularly in regional areas, and the role of crypto ATMs in facilitating these crimes. McCormack stated the coalition would not give a blank cheque but would support the bill's passage to allow for necessary scrutiny and amendment in the Senate.

Laxale argued the bill was part of a broader strategy to strengthen national security and protect the financial system from organised crime. Laxale highlighted the systemic vulnerability created by cash-based crypto ATM transactions, which lack the traceability of digital bank transfers. Laxale noted the bill included a 30-day consultation period and statutory safeguards, with Schedule 1 commencing on 1 January 2027 to allow industry adaptation.

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Aldred stated that the coalition supported the bill's intent to address evolving financial threats, citing the rapid increase in cryptocurrency ATMs and their link to scams and money mule activity. Aldred highlighted the connection between illicit tobacco profits and serious organised crime, arguing that criminal networks exploit regulatory weaknesses. While acknowledging the need for reform, she expressed concern that the bill granted significant discretion to the AUSTRAC CEO with loosely defined thresholds. Aldred argued that the coalition had referred the bill to a committee inquiry, which recommended refinements to oversight mechanisms and delayed commencement dates to allow businesses time to comply.

Clutterham argued that the bill was essential for protecting liberal democracies from the destabilising effects of organised crime and autocratic regimes. Clutterham noted that serious and organised crime cost Australia billions annually, with proceeds often funding corruption and undermining the rule of law globally. Clutterham explained that the bill empowers the AUSTRAC CEO to restrict high-risk products, such as cryptocurrency ATMs, while ensuring legitimate investors are protected. Clutterham emphasised that the legislation updates definitions of terrorism financing to include state sponsors and aligns with international obligations.

Lawrence described money laundering as the enabler of serious crime, including drug trafficking and child exploitation, and argued the bill was a necessary step following the 2024 reforms. Lawrence cited evidence that a high percentage of cryptocurrency ATM users were scam victims or coerced money mules, highlighting the urgent need for regulatory intervention. Lawrence detailed the safeguards in the bill, noting that restrictions require public interest tests and parliamentary oversight, with limits on the duration of emergency measures. Lawrence commended the bill for updating terrorism financing definitions and clarifying compliance obligations for regulated businesses.