Australia's AML/CTF (Travel Rule) Transitional Rules Update

The Australian Travel Rule was initially scheduled for 31 March 2026. However, AUSTRAC and the Department of Home Affairs have postponed it to 1 July 2026. 

The reason for this change is the substantial impact Australia’s AML/CTF reforms will have. These reforms introduce new requirements for financial services, digital assets, and designated non-financial businesses. 

To ensure effective implementation, the government has set transitional rules that phase in requirements, stagger deadlines, and defer specific obligations as needed.

The timeline below outlines the key dates, explains what changes occur at each transition, when they take effect, and specifies which entities are impacted during each phase.

31 March 2026: AML/CTF Transitional Reforms Begin

Initially, the Australian Travel Rule was set to commence on this date. That date has since been pushed to 1 July 2026. However, 31 March marks the start of the AML/CTF Transitional Reforms. 

31 March 2026 to 30 March 2029: Transitional Period for Initial Customer Due Diligence

On 31 March 2026, existing digital currency providers, who will become virtual asset service providers (VASPs) under the Travel Rule, enter a three-year initial customer due diligence (CDD) transition. This period runs until 30 March 2029 and marks the start of new compliance expectations. 

During this period, existing reporting entities must transition to the reformed initial CDD obligations. This grace period does not include ongoing CDD (Section 30 AML/CTF Act), which needs to be implemented from 31 March 2026. 

Furthermore, on this date, providers of newly regulated virtual asset services may begin enrolling and registering with AUSTRAC, with a deadline of 29 July 2026. 

Although enrolments begin on this date, these businesses, known as tranche 2* entities, are temporarily exempt from specific AML/CTF obligations. This grace period allows these entities sufficient time to prepare for compliance.

Existing digital currency exchange providers are not required to re-register with AUSTRAC

30 May 2026: Period for Notifying AUSTRAC of Elected Compliance Officer

Existing reporting entities have until 30 May 2026 to notify AUSTRAC of their AML/CTF compliance officer, and newly regulated businesses (tranche 2) have until 29 July to do so.

1 July 2026: Travel Rule for Virtual Asset Transfers

On 1 July 2026, AML/CTF obligations formally commence for existing and newly regulated virtual asset service providers. 

In other words, on 1 July, the Travel Rule will be in full effect for all virtual asset service providers.

29 July 2026:  Enrolment and Registration Deadline for Tranche 2 Entities

By 29 July 2026, tranche 2 entities and providers of new virtual asset services must be fully enrolled and registered with AUSTRAC. 

Additionally, these entities must notify AUSTRAC of their AML/CTF compliance officer.

1 July 2029: Independent Evaluations 

Newly regulated businesses may set an extended deadline for their first independent AML/CTF evaluation, based on the nature, size, and complexity of their operations. The timing of this evaluation will be determined by the AUSTRAC account number assigned at enrolment, ensuring evaluation dates are staggered and do not fall due across entire sectors at the same time.

The first independent evaluation will not occur before three years from commencement. The earliest deadline is 1 July 2029, with other deadlines staggered every six months. Existing entities with recent reviews also receive more time, depending on the timing of their last review.

2029: International Value Transfer Service Reporting 

New reporting obligations for international value transfer services have been deferred until 2029. Until that time, existing international funds transfer reporting obligations will continue to apply. 

In Conclusion 

With the proposed implementation timeline, digital asset service providers (VASPs) have sufficient time to comply with the reforms.   

This phased approach allows entities time to implement the appropriate tools for compliance and meet the regulatory requirements. 

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All information comes from AUSTRAC’s AML/CFT reforms. For a more detailed breakdown, access AUSTRAC’s AML/CTF Transitional Rules Update  

*What Is a Tranche 2 Entity?

Tranche 2 entities are businesses that were not previously subject to AML/CTF regulation but are being brought into scope under the reforms. These include a range of designated non-financial businesses and professions, such as financial advisers, lawyers, accountants, real estate professionals, and other service providers that may be exposed to money laundering or terrorism financing risks.