The Australian Government has expanded its anti-money laundering and counter-terrorism financing (AML/CTF) framework to capture certain high-risk transactions involving precious metals, stones and products. The reforms, administered by the Australian Government Agency AUSTRAC under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth), will commence on 1 July 2026 and are particularly relevant to auctioneers who handle high-value goods and payments.

The rationale for the reforms is clear, as precious metals and stones are attractive to criminals because they are high-value, easily moved, and can be traded discreetly. By targeting only higher-risk payment methods, the reforms strengthen Australia’s financial crime defences without imposing unnecessary compliance burdens on low-risk auction activity.

The reforms do not regulate all auction activity involving jewellery, precious metals or stones. Instead, they apply only to specific payment-based circumstances. This distinction is critical for auctioneers, many of whom already operate with strong transparency, client identification and trust account controls.

An auctioneer (or auction business) provides a regulated service only where all of the following conditions are met:

  • The auction (i.e. sale) involves the purchase or sale of precious metals, stones or products;
  • The value is $10,000 or more, either as a single payment or a series of transactions that are linked or appear linked; and
  • Payment is made using physical currency (cash), virtual assets (such as cryptocurrency), or a combination of both.

Where these criteria are met, the transaction is regulated even if payments are split across multiple instalments below $10,000, provided they are connected.

Just as importantly, many auctioneers will not be captured at all. If an auction business does not accept cash or virtual assets, and instead requires payment via bank transfer, EFTPOS or card, the transaction is not a designated service. In those circumstances, the auctioneer has no AML / CTF obligations for these services and does not need to establish an AML / CTF program. Auctioneers may therefore avoid regulation entirely by deliberately choosing which payment methods to accept.

For auctioneers who do accept regulated payments, the reforms introduce clear obligations. Affected businesses must enrol with Austrac and implement an AML / CTF program proportionate to their risk profile. This includes customer identification and verification processes, assessment of money laundering and terrorism financing risk, monitoring for linked transactions, and reporting suspicious matters or threshold transactions where required.

Austrac has released sector-specific guidance to assist affected businesses, including practical examples relevant to auction settings. While some guidance materials, such as the Jeweller Program Starter Kit, are designed primarily for retail jewellery businesses, the principles apply equally to auctioneers dealing with comparable goods and payment risks.

Although these resources are designed primarily for retail jewellery businesses, the principles apply equally to auctioneers dealing with comparable goods and payment risks. Importantly, the guidance recognises that many businesses already have systems in place and is intended to build on existing practices rather than replace them.

Auctioneers who handle high-value goods should review their payment policies now and, where necessary, prepare well ahead of the 1 July 2026 commencement date.

Auctioneers and Valuers Association of Australia (AVAA) members serving on the AVAA Government Affairs Committee engaged with Austrac during the development of the guidance, engaging directly with the auctioneering and valuation sector to ensure the materials reflect practical realities, established professional standards, and proportionate regulatory expectations.

Interested In Finding Out More?

For further information on AVAA’s engagement with Austrac on this matter, please send an email to policy.advocacy@avaa.com.au or telephone 1300 928 165.  You can also stay up to date by following AVAA on LinkedIn, X/Twitter and Facebook.