Accountants grapple with incoming reforms
As accountants deal with the implications of incoming AML / CTF reforms, the IPA’s CEO shares the industry’s key concerns - and what needs to happen next.
Andrew Conway, CEO of the Institute of Public Accountants (IPA), has outlined some of the biggest challenges facing the accounting profession as Australia prepares to comply with Tranche 2 AML obligations by July 2026.
Conway says the level of preparedness in the industry is mixed.
“Many accountants, especially those in smaller practices, are still grappling with the full implications of these reforms and how they will impact their day-to-day operations,” Conway says.
“There is a general understanding of the importance of AML/CTF regulations, but the specifics of implementation remain unclear for many.”
Conway is one of the many expert speakers who will take to the stage at AML Edge 2025 in Sydney on 27 March to help educate and inform accountants on how to get ahead of the compliance obligations.
Top concerns from accountants
Conway says one concern they’re hearing from members is the scope of the rules, including clarity on which specific activities will be considered designated services.
“There are also concerns about the potential inequity if the rules only apply to specified professionals, potentially creating risk displacement,” he adds.
Naturally, there is also widespread concern about the additional administrative and compliance burden - especially for small and micro businesses - as well as concerns about the requirement to retrospectively rate the risks of all existing clients.
“[We hear] questions about the proportionality of compliance costs relative to the effectiveness in deterring and detecting criminal activity,” Conway says.
Practical concerns
IPA members are seeking clarity on expected timelines for implementation and whether there will be a phased transition period, as well as specific requirements for record-keeping, reporting, and ongoing due diligence.
Conway adds that IPA members want to know more about potential duplication with existing professional obligations and how the new rules will harmonize with current practices.
Accountants also have questions about who will be considered the reporting entity for tranche 2 entities - will it be the business offering services or the owners/principals/partner? The IPA has also received inquiries about how to implement a risk-based approach effectively and what this means in practice for different types of clients and services.
“Accountants also want to know what software or systems will be approved for AML/CTF compliance and whether existing practice management systems will be sufficient,” Conway adds.
“The IPA is actively engaged in addressing these concerns through ongoing dialogue with regulators, providing submissions on proposed reforms, and developing resources to support members in navigating these changes,” Conway says.
Join Andrew Conway and over 25 regulators and domestic and international compliance experts at AML Edge 2025, 27 March, Sydney to tackle these questions and more. Click here to read more and secure your ticket.
