Major reforms to Australia's anti-money laundering and counter-terrorism financing (AML/CTF) framework took effect on 31 March 2026, and every licensed betting operator in the country is now subject to tougher customer identification and monitoring requirements.
What Changed on 31 March
The amended AML/CTF Act introduces three key changes for wagering operators.
First, the customer due diligence exemption threshold for gambling service providers dropped from $10,000 to $5,000. Operators can no longer delay full identity verification for customers transacting below $10,000. The lower bar means more punters will face ID checks earlier in the onboarding process.
Second, AML/CTF programs must now be built around identifying and mitigating actual risk, not just maintaining a compliance document. The Department of Home Affairs has described this as a shift from "box-ticking" toward outcomes that detect suspicious patterns before they escalate.
Third, ongoing due diligence is now explicitly required throughout the life of a customer relationship, not just at account opening. Operators must monitor for changes in customer behaviour, not only at sign-up.
AUSTRAC Signals Tougher Enforcement
The financial crimes regulator AUSTRAC has warned that businesses with weak controls "will continue to face regulatory action, including civil penalty proceedings."
AUSTRAC CEO Brendan Thomas linked the reforms to closing gaps that organised criminals exploit, stating that criminals "take advantage of gaps in the financial system anywhere they can find them."
Several major enforcement actions remain unresolved, including proceedings against The Star (casino), Ladbrokes parent Entain (online wagering), and the Mounties Group (licensed club). These cases could shape industry compliance practices for years.
What This Means for Punters
You may notice stricter ID checks when opening new accounts or making larger deposits. Some operators may request additional documentation (proof of address, source of funds) that wasn't previously required. These checks are now mandatory under federal law, not optional. If an operator doesn't ask for ID on a $5,000+ transaction, that's a red flag about their compliance standards, not a convenience.