AUSTRALIA Trends and Developments Contributed by: Julian Hoskins, Daniel Lovecek, Bree Ryan and Alexander Norrish, Senet
with implementation. The important roles of boards, senior management and AML/CFT compliance offic- ers are also emphasised under the new regime, with each having more detailed obligations to ensure AML/ CFT compliance. Changes have also been made to customer due dili- gence requirements, with the aim of taking a more targeted and flexible approach. The Act and Rules now provide for simplified due diligence in certain low-risk circumstances, while ongoing due diligence and enhanced due diligence requirements also apply. At the time of writing, industry is awaiting additional guidance on important implementation questions regarding matters such as the requirement to use “information reasonably available” before providing any designated service to identify the money launder- ing/terrorism financing risk of the customer. Recent years have seen AUSTRAC being particularly active in the gambling sector, with litigation and other enforcement action having been taken against both gaming venues and online wagering licensees for alleged breaches. It is anticipated that this focus on the sector will continue into 2026. Payment Service Regulatory Reforms On 30 July 2025, the government introduced the Treasury Laws Amendment (Payment System Mod- ernisation) Bill 2025 (Act) to the House of Representa- tives. The Bill passed both the House and Senate on 4 September 2025, and it received Royal assent on 19 September 2025. The Act commences on 19 Decem- ber 2025. The Act provides for an expanded regulatory perim- eter of the Payment Systems (Regulation) Act 1998 (PSRA). In particular, the Act amends, among other things, the definitions of “payment systems” and “par- ticipants” in the PSRA. By doing this, the definitions are intended to apply to a broader range of payment systems such as stored-value facilities, digital wal- lets, stablecoins, etc, which are not currently subject to the PSRA. The objective of the reforms is for these types of pay- ment systems to be able to be targeted by the Reserve Bank of Australia’s powers and directions, as well as
by the new Finance Services Minister’s powers, as introduced by the Act. New types of payment systems that will be captured by the new definitions will require an Australian Finan- cial Services License (AFSL) where they have been “designated” by the Reserve Bank of Australia or the Financial Services Minister, which needs to occur via legislative instrument. The sector is eagerly awaiting confirmation of those arrangements that will fall within scope of the reforms, as well as transitional arrangements. National Self-Exclusion Register Update BetStop, Australia’s National Self-Exclusion Regis- ter for online wagering services, was implemented in August 2023. It allows individuals experiencing gam- bling harm to self-exclude from all licensed online betting services for a minimum of three months, up to a lifetime. Operators are prohibited from accept- ing bets, opening new accounts or sending market- ing communications to self-excluded individuals, and they must take other steps to mitigate the risk of harm to consumers. During 2025, BetStop was reviewed as part of a statu- tory consultation process, with a final report from the Minister of Communications expected in early 2026. The review examines the effectiveness of the regula- tory framework, the appropriateness of cost recovery levies (which are industry-funded) and whether the current arrangements remain fit for purpose. Over 40,000 Australians are currently enrolled in Bet- Stop. Recent compliance updates from the respon- sible regulator, the Australian Communications and Media Authority (ACMA), have focused on a number of matters, including: • websites, apps and messages to customers need- ing to contain clear references and links to Bet- Stop; • accounts belonging to self-excluded customers being permanently closed, not placed on hold; and • messages being correctly categorised, such as push notifications being categorised as electronic messages and personal messages being catego-
61 CHAMBERS.COM
Powered by FlippingBook