Effective January 7, 2025, motor vehicle dealers are no longer required to report significant cash transactions or suspicious transactions to the Australian Transaction Reports and Analysis Centre (AUSTRAC).
This significant change is a direct result of the repeal of the Financial Transaction Reports (FTR) Act 1988. The FTR Act previously mandated reporting obligations for various entities classified as “cash dealers,” including motor vehicle dealerships.
Rationale for Deregulation
The deregulation stems from a re-evaluation classifying services provided by motor dealers as low risk in the context of money laundering and terrorism financing. This aligns with a broader shift in regulatory focus towards sectors currently identified as presenting higher risks.
Future Regulatory Landscape
While new services will be subject to regulation from late June 2026, there are currently no intentions to re-regulate the motor dealer industry under these forthcoming provisions.
Important Note: It is imperative to acknowledge that the secrecy provisions pertaining to information previously collected, particularly concerning suspicious matters, remain legally enforceable.
