Australia’s retail and payments sector has welcomed the finalisation of new Anti‑Money Laundering and Counter‑Terrorism Financing (AML/CTF) rules for gift cards, with the Australian Gift and Prepaid Card Association (AGPCA) playing a central role in securing a proportionate, practical and risk‑based outcome.
AUSTRAC’s AML/CTF (Class Exemptions and Other Matters) Amendment Rules 2026 confirm that most mainstream gift card programs will be exempt from additional customer due diligence, provided they meet defined product design and control requirements. For industry, this removes the risk of unnecessary checkout friction while maintaining strong safeguards against misuse.
What the new framework delivers
Under the updated rules, qualifying gift card programs:
- Are exempt from additional customer due diligence, aligning obligations with actual risk
- Are capped at $5,000 per card
- Cannot be redeemed for cash
- Cannot be reloaded, except in limited circumstances such as refunds
From September 2027, issuers will need to have measures in place to ensure they have “taken reasonable steps to mitigate and manage the risk that the gift card will be used as an instrument of money laundering, financing of terrorism or other crimes”, with domestic‑only usage requirements applying from March 2029. Importantly, AUSTRAC has provided generous transition periods, allowing time to adapt systems, product design and customer communications.
AUSTRAC has also released practical guidance on transaction controls, suspicious activity monitoring and emerging criminal typologies, ensuring protections remain robust without undermining consumer convenience.
AGPCA’s role: coordinated, credible advocacy
AGPCA was a core contributor to the cross‑industry working group that shaped the final framework, working alongside the Shopping Centre Council of Australia (SCCA), Blackhawk, Incomm, Woolworths and other major issuers and distributors.
AGPCA’s advocacy focused on ensuring regulation reflected how gift card products operate in practice. This included:
- Detailed submissions explaining product design, controls and real‑world usage
- A dedicated exemption application lodged on behalf of members
- Broader policy engagement, including Treasury’s payments system reforms, to position gift cards as a distinct category
This work was underpinned by operational data and experience from across AGPCA’s diverse membership, giving regulators confidence that existing safeguards were effectively managing risk.
A template for better regulation
With the rules now finalised, AGPCA will continue to support members through implementation ahead of the 2027 and 2029 milestones, helping ensure consistent and efficient adoption across the sector.
More broadly, the AUSTRAC exemption stands as a clear example of how evidence‑based industry engagement can deliver better regulation, protecting the financial system while supporting innovation, competition and everyday consumer use.