AUSTRAC Compliance Report (ACR): the annual lodgement explained

What the ACR is

The AUSTRAC Compliance Report (ACR) is an annual lodgement required of reporting entities under the AML/CTF Act 2006. This report provides AUSTRAC with information about a reporting entity’s anti-money laundering and counter-terrorism financing (AML/CTF) compliance program. Reporting entities should use the AML Tranche 2 scope checker to confirm their obligations.

The ACR covers the preceding calendar year, encompassing the period from 1 January to 31 December. It allows AUSTRAC to assess how well reporting entities are meeting their obligations under the Act.

Lodgement is completed via AUSTRAC Online and is generally due by 31 March of the year following the reporting period.

What it covers

The AUSTRAC Compliance Report (ACR) documents a reporting entity’s adherence to core Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act obligations. This includes confirmation of the existence and effective operation of both a Part A and Part B AML/CTF Program. The report also covers the entity’s performance of customer due diligence processes, transaction monitoring activities, and fulfilment of reporting obligations.

The ACR provides a record of how the reporting entity is meeting its obligations regarding employee training. It allows for the inclusion of details concerning any issues identified during the compliance period and the remediation activities undertaken to address those issues.

A key component of the ACR is the confirmation from the reporting entity’s Compliance Officer, attesting to the entity’s compliance with the relevant AML/CTF legislative requirements.

How AUSTRAC uses the data

AUSTRAC utilises the information provided in the ACR to assess the risk profile of reporting entities. This data contributes to supervisory risk-rating, allowing AUSTRAC to focus its oversight efforts. It also enables AUSTRAC to identify specific sectors or individual entities that may require additional scrutiny and a more detailed compliance review. compliance calendar tool

The aggregated data from ACRs helps AUSTRAC to understand broader trends within the financial sector. These trends inform AUSTRAC’s enforcement priorities and the development of sector-specific guidance, supporting a consistent approach to compliance.

Failure to lodge the ACR, or submitting a report containing false or misleading information, can trigger formal compliance action.

Implications for Tranche 2 entities

Tranche 2 entities, including lawyers, conveyancers, accountants, tax advisers, real estate agents, trust and company service providers, and precious metals and stones dealers, are subject to specific requirements regarding the AUSTRAC Compliance Report (ACR). These entities will be brought under Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) legislation from 1 July 2026.

These reporting entities must enrol with AUSTRAC by 29 July 2026 and begin operating under the new AML/CTF obligations from 1 July 2026. This enrolment is a mandatory step to ensure compliance.

The first ACR for Tranche 2 entities will cover the reporting period commencing from 1 July 2026. The lodgement deadline for this initial report will be determined by AUSTRAC and should be confirmed directly with the regulatory body.