The Attorney General’s Department and AUSTRAC discussed the highly anticipated Tranche 2 and AML/CTF modernisation reforms, highlighting the evolving regulatory environment. With Australia at risk of being ‘grey listed’ by FATF due to lagging standards, there is a significant shift towards a more targeted, risk-based approach to regulation. The reforms aim to support businesses in identifying and mitigating financial crime more effectively and extend the regime to Tranche 2 professions. Emphasis was placed on encouraging ongoing stakeholder collaboration and fostering strategic partnerships between industry and government.

Our panel on the ecosystem response to scams, including senior representatives, underscored the importance of improving coordination efforts between government and industry. Effective information sharing was highlighted as crucial for addressing this complex issue. Progress has been made through data-sharing initiatives between the banking and telecommunications industries, resulting in earlier scam detection and reducing the time scams remain online. However, the need for social media platforms to join the conversation, improved public education, and a standardised communication approach were identified as key improvement areas.

The International Justice Mission Australia (IJM) offered an alternative perspective on scams, highlighting the hidden victims in the scams value chain. This thought-provoking discussion drew attention to victims trafficked and forced into criminal exploitation through scam compounds in countries with weaker regulatory frameworks. IJM emphasised the importance of disrupting criminal activities at their source, providing victim support, and raising public awareness.

Our Deloitte Digital team highlighted the importance of considering the customer perspective amidst rapid technological change and innovation in online services. They emphasised the tension points between human-like interactions and the critical moments when genuine human involvement is essential for enhancing the customer experience. Adopting and adapting to new technologies effectively navigate and strike the optimal balance was a key takeaway.

Senior representatives and SymphonyAI provided insights into the emerging ‘AI arms race,’ highlighting its dual role as disruptive technology leveraged by both industries and government, as well as by criminals eager to exploit new vulnerabilities. Close attention to developments in post-AI application, enforcement of new regulatory guardrails, and initiatives to enable information sharing were deemed crucial. Specialised training and accreditation programs to bridge the AI skills gap were also emphasised.

The Symposium concluded with a session reflecting on the current financial crime landscape and the need for a comprehensive economic crime strategy in Australia. Senior representatives discussed the persistent challenges posed by fraud and scams. Shifting from mere technical compliance to more effective prevention and identification measures was highlighted as crucial for modernising the regime. Setting national risk standards and industry benchmarks was proposed to help Australia tackle financial crime in a more targeted and risk-driven manner. Collective action through ecosystem collaboration, strategic initiatives, and fostering greater empathy for scam victims were underscored as contributing to positive social outcomes in combating financial crime.