Auctioneers dealing in jewellery, previous stones, watches, bullion-related products and related goods should now be carefully reviewing the incoming anti-money laundering and counter-terrorism financing (AML/CTF) reforms being introduced by Austrac, particularly if they are using cash or cryptocurrency to facilitate transactions.
From 1 July 2026, the regulatory environment surrounding certain transactions involving precious metals, precious stones and precious products will change significantly, creating important compliance obligations for many auction businesses operating across Australia’s secondary market.
The AML/CTF reforms extend regulation to designated services involving dealers in precious metals, precious stones and precious products where businesses accept physical cash, virtual assets, or combinations of both valued at $10,000 or more. For auctioneers conducting auctions involving jewellery, gold, silverware, watches, luxury accessories and collectible assets, the reforms are likely to become an increasingly important operational issue. Importantly, the threshold may apply not only to individual transactions but also to linked transactions that collectively exceed the prescribed amount.
The legislation adopts broad definitions that many auctioneers may not immediately appreciate.
For the purposes of the reforms, auction houses need to comply with the CML/CTF reforms if they deal in precious metals include gold, silver, platinum, palladium, rhodium and related alloys containing at least 2 percent of those substances. Precious stones include diamonds, opals, pearls and other gem-quality materials recognised for rarity and value. Precious products extend to jewellery, watches, personal adornments and articles of goldsmithing or silversmithing incorporating precious metals or stones.
The reforms also capture transactions involving virtual assets. This is a particularly important development for auctioneers operating online or servicing technology-oriented buyers. AUSTRAC defines virtual assets broadly to include digital currencies, non-fungible tokens (NFTs), governance tokens and other digital representations of value. Auction businesses accepting cryptocurrency such as Bitcoin (BTC), Ethereum (ETH), Tether (USDT), XRP (XRP), Binance Coin (BNB) or similar digital payment arrangements for regulated goods may therefore become subject to AML/CTF obligations.
One of the most significant practical issues is that AML/CTF obligations are not limited to large corporations. Sole traders, family businesses, partnerships, trusts and incorporated auction businesses may all become reporting entities where they conduct regulated activities. In this context, AVAA Corporate Members and individuals with the AVAA Certified Auctioneer (CVAu) are encouraged to look carefully at the reforms.
Businesses captured by the reforms may need to enrol with Austrac, implement AML/CTF compliance programs, undertake customer due diligence procedures, maintain transaction records and report certain matters to Austrac.
Many auctioneers are now reviewing whether high value cash transactions or virtual asset payments remain commercially worthwhile given the increased regulatory burden. For some businesses, revised payment policies and tighter client onboarding procedures may become necessary well before the July 2026 commencement date.
Importantly, the Auctioneers and Valuers Association of Australia (AVAA) is proactively engaged with Austrac concerning the reforms and their practical impact on auctioneers and valuers operating within the secondary goods market. As a member-driven national industry body, AVAA continues to engage directly with regulators, government agencies and sector stakeholders to ensure the practical realities facing auction businesses are properly understood. AVAA’s engagement with Austral reflects the member-driven nature of AVAA’s policy advocacy and engagement with governments.
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Interested In Finding Out More?
If you’re interested in AML.CTF reforms, , send an email to government.affairs@avaa.org.au or telephone 1300 928 165. You can also stay up to date by following AVAA on LinkedIn, X/Twitter and Facebook.
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