Anti-Money Laundering and Counter-Terrorism Financing (Proliferation Financing) Regulations 2026

Administered by Department of Home Affairs

Legislation au F2026L00412 Regulations In force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Issued by authority of the Minister for Home Affairs

under the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006

Anti-Money Laundering and Counter-Terrorism Financing (Proliferation Financing) Regulations 2026

Legislative Authority

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (the AML/CTF Act) establishes a regime to harden certain high-risk industries against the risk of money laundering and terrorism financing.

Subsection 252(1) of the AML/CTF Act gives the Governor-General the power to make regulations consistent with the AML/CTF Act prescribing all matters, which by the AML/CTF Act are required or permitted to be prescribed or as may be necessary or convenient to be prescribed for giving effect to the AML/CTF Act.

From 31 March 2026, the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (the AML/CTF Amendment Act) amends the AML/CTF Act to insert a definition of proliferation financing.

Paragraph (a) of the definition of proliferation financing inserted into section 5 of the AML/CTF Act allows regulations made under the Charter of the United Nations Act 1945 to be prescribed as part of the definition of proliferation financing. Paragraph (c) allows regulations made under the Autonomous Sanctions Act 2011 to be prescribed. Paragraph (d)(ii) allows regulations to prescribe laws of the Commonwealth that implement an international agreement or treaty designed to prevent proliferation financing. Paragraph (g) provides that offences against laws of the Commonwealth or a state or territory that are prescribed by regulation will also amount to proliferation financing.

Purpose

The purpose of the Anti-Money Laundering and Counter-Terrorism Financing (Proliferation Financing) Regulations 2026 (the Regulations) is to give effect to the definition of proliferation financing in the AML/CTF Act, which will come into effect on 31 March 2026. The Regulations prescribe relevant laws to provide clarity about what may be considered proliferation financing, to assist entities in understanding the risk they may face.

Background

Australia has a comprehensive sanctions regime and a complementary AML/CTF framework to combat proliferation financing activity. Australia also maintains a robust legal and operational framework to combat proliferation activities.

Section 5 of the Act provides a definition of proliferation financing at paragraph (a) that includes an offence against the Charter of the United Nations Act 1945 or regulations under that Act. This aligns with the Financial Action Task Force (FATF) Standards which cover any potential breach, non-implementation or evasion of United Nations Security Council (UNSC) targeted financial sanctions related to the proliferation of weapons of mass destruction. The FATF Standards cover UNSC sanctions in relation to the Democratic People’s Republic of Korea (DPRK), and Iran, following the snapback of sanctions against Iran in 2025.

Paragraphs (b), (c) and (d) of the definition extend this definition to other offences against Australian counter-proliferation laws, including autonomous sanctions and other laws that give effect to international conventions relating to the proliferation of weapons of mass destruction. Paragraph (g) also enables relevant laws to be prescribed in regulations to assist reporting entities and allow for these laws to be updated, where appropriate, in response to international developments.

Impact and effect

As part of the definition of proliferation financing for the purposes of the AML/CTF Act, the Regulations further prescribe the specific laws, regulations made under those laws, or offences against those laws, for the following Commonwealth Acts:

  • Charter of the United Nations Act 1945
  • Autonomous Sanctions Act 2011
  • Chemical Weapons (Prohibition) Act 1994
  • Comprehensive Nuclear-Test Ban Treaty Act 1998
  • Crimes (Biological Weapons) Act 1976
  • Customs Act 1901
  • Nuclear Non-Proliferation (Safeguards) Act 1987
  • Weapons of Mass Destruction (Prevention and Proliferation) Act 1995.

 

These laws and associated regulations and offences were identified as being used to combat proliferation financing in the Australian Transaction Reports and Analysis Centre’s (AUSTRAC’s) 2022 Proliferation Financing in Australia National Risk Assessment. In effect, the Regulations will enable reporting entities to effectively identify, mitigate and manage their risk of proliferation financing. The AML/CTF Amendment Act provides that from 31 March 2026 currently regulated entities under the AML/CTF regime will have an explicit obligation to have an up-to-date money laundering, terrorism financing and proliferation financing risk assessment. This obligation comes into effect on 1 July 2026 for newly regulated entities.

The Regulations assist in identifying offences that amount to proliferation financing. For example, offences are prescribed if the relevant conduct constituting the offence is a contravention of a provision of a United Nations (UN) sanctions law under either the Charter of the United Nations (Sanctions—Democratic People’s Republic of Korea) Regulations 2008 (the DPRK Regulations) or the Charter of the United Nations (Sanctions—Iran) Regulation 2025 (the Iran Regulations). Both the Iran Regulations and the DPRK Regulations include offences that go beyond a narrow definition of proliferation financing and includes conduct such as importing sanctioned goods.

The Regulations also prescribe offences against section 16 of the Autonomous Sanctions Act 2011 (the Sanctions Act), and Autonomous Sanctions Regulations 2011 against the DPRK and Iran. The regulations specified are targeted at those that specifically relate to actions that would contribute to the financing of those countries’ weapons of mass destruction programs. These include contravention that involves providing a specified kind of sanctioned service, engaging in a sanctioned commercial activity, making available assets, or the control or ownership of a controlled asset by a designated person or entity.

Offences in Part XIII of the Customs Act 1901 are also prescribed, where they involve export of prohibited items under the Customs (Prohibited Exports) Regulations 1958 or prohibited imports under regulation 4Y or 4Z of the Customs (Prohibited Imports) Regulations 1956.

Customs (Prohibited Exports) Regulations 1958 prohibited items include certain sanctioned goods, broad-based prohibited exportation to DPRK, specific goods prohibited to export to DPRK and Iran, and defence, strategic and certain dual-use goods (e.g. nuclear material). Regulation 4Y and 4Z of the Customs (Prohibited Imports) Regulations 1956 prohibits all goods from the DPRK except for some food and medicine and the import of goods from Iran, where those goods are listed on either the UNSC documents S/2006/814 or S/2006/815.

The Department of Home Affairs (the Department) consulted affected reporting entities, who broadly supported the proposal. Most regulated entities are expected to have no proliferation financing risk. The Department additionally consulted the Attorney-General’s Department, the Department of Foreign Affairs and Trade, the Australian Border Force and the Department of Defence in relation to listing legislation that falls under their respective portfolios.

The Office of Impact Analysis has determined that further detailed analysis is not required under the Australian Government's Policy Impact Analysis Framework (OIA25-10210).

Details and operation

The Regulations are a legislative instrument for the purposes of the Legislation Act 2003.

The Regulations commence on 31 March 2026.

Details of the Regulations are set out in Attachment A.

A Statement of Compatibility with Human Rights has been prepared in accordance with the Human Rights (Parliamentary Scrutiny) Act 2011 and is set out in Attachment B.


Attachment A

 

Details of the Anti-Money Laundering and Counter-Terrorism Financing (Proliferation Financing) Regulations 2026

Section 1 – Name

This section provides that the title of the instrument is the Anti-Money Laundering and Counter-Terrorism Financing (Proliferation Financing) Regulations 2026.

Section 2 – Commencement

This section provides that the Regulations commence immediately after the commencement of Schedule 1 to the Anti Money Laundering and Counter Terrorism Financing Amendment Act 2024. This means the Regulations will commence on 31 March 2026.

Section 3 - Authority

This section provides that the Regulations are made under the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (the AML/CTF Act).

Paragraph (a) of the definition of proliferation financing inserted into section 5 of the AML/CTF Act provides that conduct that amounts to an offence against the Charter of the United Nations Act 1945, or regulations made under that Act, that is prescribed by regulations made under the AML/CTF Act for the purposes of the paragraph, is proliferation financing.

Paragraphs (b) and (c) of the definition of proliferation financing provides that conduct that amounts to an offence against the Autonomous Sanctions Act 2011, or a contravention of regulations made under that Act, that involves sanctions addressing the proliferation of weapons of mass destruction or that is prescribed by regulations made under the AML/CTF Act for the purposes of the paragraph, is proliferation financing.

Paragraph (g) of the definition of proliferation financing provides that conduct that amounts to an offence against laws of the Commonwealth or a state or territory that are prescribed by regulation for the purposes of the paragraph will also amount to proliferation financing.

Section 4 – Definitions

This section defines the use of ‘Act’ as meaning the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006.

Section 5 – Offences against the Charter of the United Nations Act 1945

This section prescribes offences against section 27 of the Charter of the United Nations Act 1945 (the UN Act) as part of the definition of proliferation financing. Offences are prescribed if the relevant conduct constituting the offence is a contravention of a provision of a United Nations (UN) sanctions law under either the:

  • Charter of the United Nations (Sanctions—Democratic People’s Republic of Korea) Regulations 2008 (the DPRK Regulations), or
  • Charter of the United Nations (Sanctions—Iran) Regulation 2025 (the Iran Regulations)

Section 27 of the UN Act states that individuals or bodies corporate commit an offence if they engage in conduct that contravenes a UN sanction enforcement law, or a condition of a licence, permission, consent, authorisation or approval under a UN sanction enforcement law.

Section 2B of the UN Act defines a UN sanction enforcement law. It provides that the Minister may, by legislative instrument, specify a provision of a law of the Commonwealth as a UN sanction enforcement law. However, the provision must give effect to a decision that the UNSC has made under Chapter VII of the Charter of the United Nations and that Article 25 of the Charter requires Australia to carry out in so far as that decision requires Australia to apply measures not involving the use of armed force. Both the DPRK and Iran Regulations meet these criteria.

Both the Iran Regulations and the DPRK Regulations include offences that go beyond a narrow definition of proliferation financing. This includes such conduct as importing sanctioned goods. However, all offences against the DPRK Regulations and the Iran Regulations are included, as the primary purpose of these regulations are to prohibit the growth of the weapons of mass destruction programs of the DPRK and Iran.

Section 6 – Offences against the Autonomous Sanctions Act 2011

This section prescribes offences against section 16 of the Autonomous Sanctions Act 2011 (the Sanctions Act), and autonomous sanctions regulations against the DPRK and Iran. The regulations specified are targeted at those that specifically relate to actions that would contribute to the financing of those countries’ weapons of mass destruction programs.

Subsection 6(1) of the Regulations prescribes offences against the Sanctions Act to the extent that the offence is a contravention of a sanctions law as defined by the Sanctions Act, or a condition of an authorisation under a sanctions law.

Section 16 of the Sanctions Act provides that individuals or bodies corporate commit an offence if they engage in conduct that contravenes a sanction law, or the conduct contravenes a condition of an authorisation (however described) under a sanction law.

Subsection 6(2) of the Regulations prescribes the following specific regulations made under the Sanctions Act in relation to the DPRK:

  • Regulation 13 if the contravention involves providing a sanctioned service mentioned in any one or more of subregulations 5(8) - (11);
  • Regulation 13A in relation to sanctioned commercial activity as per regulation 5CA;
  • Regulation 14 in relation to the supply of assets to a person listed at item 1 of the table at regulation 6; and
  • Regulation 15 in relation to the supply of assets to a person listed at item 1 of the table at regulation 6.

 

Regulation 13 relates to specific sanctioned services related to the DPRK (i.e. prohibiting the supply of sanctioned services to Air Koryo). Regulation 5 defines sanctioned services as the provision of technical advice, assistance or training, or a financial service or other service that assists with, or is provided in relation to, a sanctioned supply.

Regulation 13A concerns sanctioned commercial activity that is not authorised commercial activity. Regulation 5CA lists what is sanctioned commercial activity for the DPRK.

Regulation 14 concerns the provision of sanctioned services where the sanctioned service is not an authorised service, and the sanctioned service is not provided in relation to an authorised supply. Item 1 of the table in regulation 6 lists persons related to the DPRK’s weapons of mass destruction program or certain violations of UN sanctions. Regulation 15 prohibits dealing with controlled assets, or allowing or facilitating the use of these assets, likewise in relation to persons listed at item 1 of table 6.

Subsection 6(3) of the Regulations prescribes the following specific regulations made under the Sanctions Act in relation to Iran:

  • Regulation 12 in relation to sanctioned supply within the meaning of subregulation 4(1), where the supply relates to the export of sanctioned goods described in item 2 of the table at 4(2).
  • Regulation 13 in relation to the provision of a sanctioned service as per subregulation 5(4), where the sanctioned service relates to those of a kind mentioned in item 2 of the table in 5(4).
  • Regulation 14 in relation to assets made available, or for the benefit of, a designated person under item 4 of the table in regulation 6.Regulation 15 in relation to controlled assets owned or controlled by a designated person or entity for a country mentioned under item 4 of the table in regulation 6.

Regulation 12 makes it an offence to makes a sanctioned supply where the sanctioned supply is not an authorised supply. Item 2 of the table at subregulation 4(2) specifies the sanctioned supply for Iran (graphite, arms, raw metals, software).

Regulation 13 prevents the provision of sanctioned services to Iran. Regulation 5 in relation to Iran defines sanctioned services as the provision of technical advice, assistance or training, or a financial service or other service that assists with, or is provided in relation to the manufacture, maintenance or use of an export sanctioned good for Iran.

Regulation 14 prohibits dealing with designated persons or entities, where the person directly or indirectly makes an asset available to, or for the benefit of, a designated person or entity; and this is not authorised by a permit.

Regulation 15 makes it an offence to deal with controlled assets, where a person holds a controlled asset, and they use or deal with the asset, or allow or facilitate the asset to be used or dealt with. Item 4 lists people involved with Iran’s nuclear weapons regime, or who have breached various UN sanctions, or who have contributed to general oppression in Iran.

Section 7 – prescribed laws of the Commonwealth

This section prescribes the following Commonwealth laws:

  • the Chemical Weapons (Prohibition) Act 1994
  • the Comprehensive Nuclear Test Ban Treaty Act 1998
  • the Crimes (Biological Weapons) Act 1976
  • the Nuclear Non-Proliferation (Safeguards) Act 1987
  • the Weapons of Mass Destruction (Prevention of Proliferation) Act 1995.

These instruments were identified for inclusion as part of the definition of proliferation financing as they were identified as being used to combat proliferation financing in the AUSTRAC’s 2022 Proliferation Financing in Australia National Risk Assessment.

Section 8 – prescribed Commonwealth, State and Territory offences

This section prescribes the below offences as part of the definition of proliferation financing.

Offences in Part XIII of the Customs Act 1901 are prescribed, where they involve export of prohibited exports under the following provisions of the Customs (Prohibited Exports) Regulations 1958:

  • Division 2A of Part 3
  • regulation 13CO
  • regulation 13CQ 
  • provisions in Division 4A of Part 3, to the extent that the contravention relates to items listed in Part 2 of the Defence and Strategic Goods List 2024.

Division 2A of Part 3 prevent the exportations of goods to countries and persons subject to autonomous sanctions, as well as the prevention of controlled assets under autonomous sanctions.

Regulation 13CO prevents the export of goods to the DPRK unless they are subject to an exemption from the Minister. Regulation 13CQ likewise prevents the export of certain goods to Iran, being goods sanctioned under the Iran export sanctioned goods under 5(1) of the Iran Regulations and goods specified in a prohibition notice issued under regulation 5A of the Iran Regulations.

Division 4A of Part 3 prevents the export of defence and strategic goods. Regulation 13E(1) of the Customs (Prohibited Exports) Regulations 1958 states that this includes goods on the Defence and Strategic Goods List 2024, and products made using those goods. The Regulations specify only goods listed on Part 2 of that list will form part of the definition of proliferation financing. Part 2 of the list includes dual-use goods like nuclear materials, facilities and equipment, chemicals, microorganisms and toxins, computers, telecommunications, navigation and information security goods.

Offences in Part XIII of the Customs Act 1901 are prescribed that involve import of prohibited imports under one or more of the following provisions of the Customs (Prohibited Imports) Regulations 1956:

  • regulation 4Y
  • regulation 4Z

Regulation 4Y prohibits the import of all goods from the DPRK, except for some food and medicine. Regulation 4Z prohibits the import of goods from Iran, where those goods are listed on either the United Nations Security Council Document S/2006/814 or S/2006/815. These documents concern nuclear material or equipment, and ballistic missile programs.

 

 


Attachment B

 

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Anti-Money Laundering and Counter-Terrorism Financing (Proliferation Financing) Regulations 2026

This Disallowable Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Disallowable Legislative Instrument

 

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (the AML/CTF Act) establishes a regime to harden certain high-risk industries against the risk of money laundering and terrorism financing.

The Anti-Money Laundering and Counter-Terrorism Financing (Proliferation Financing) Regulations 2026 (the Amendment Regulations) give effect to the new definition of proliferation financing in the inserted into the AML/CTF Act by the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024, which will come into effect on 31 March 2026. The Regulations prescribe relevant laws to provide clarity about what may be considered proliferation financing to assist entities in understanding the risk they may face.

The Regulations prescribe offences against the following laws so that they form part of the definition of proliferation financing:

  • Charter of the United Nations Act 1945
  • Autonomous Sanctions Act 2011
  • Chemical Weapons (Prohibition) Act 1994
  • Comprehensive Nuclear-Test Ban Treaty Act 1998
  • Crimes (Biological Weapons) Act 1976
  • Customs Act 1901
  • Nuclear Non-Proliferation (Safeguards) Act 1987
  • Weapons of Mass Destruction (Prevention and Proliferation) Act 1995.

 

These instruments were identified as being used to combat proliferation financing in the Australian Transaction Reports and Analysis Centre’s (AUSTRAC’s) 2022 Proliferation Financing in Australia National Risk Assessment.

In effect, the Regulations will enable reporting entities to effectively identify, mitigate and manage their risk of proliferation financing. From 31 March 2026, currently regulated entities under the AML/CTF regime will have an explicit obligation to have an up-to-date money laundering, terrorism financing and proliferation financing risk assessment. This obligation comes into effect on 1 July 2026 for newly regulated entities. Reporting entities will be required to review and, if necessary, update their assessment of proliferation financing risk periodically and in response to certain triggers. A reporting entity that has not identified and assessed relevant proliferation financing risk as part of its money laundering and terrorism financing risk assessment must not commence to provide a designated service to a customer. The Regulations will assist in identifying offences that amount to proliferation financing.

Human rights implications

This Disallowable Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights because it does not engage human rights.

 

 

The Hon Tony Burke MP

Minister for Home Affairs

 

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.