Why Australia's New AML Laws Are Good for Legitimate Jewellers

SYDNEY, Australia — From 1 July 2026, Australia's jewellery trade enters a new regulatory era. Landmark amendments to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 expand the country's AML/CTF framework to cover dealers in precious metals, precious stones, and jewellery products — bringing an estimated 2,500 Australian businesses under AUSTRAC regulation for the first time. For Searay, Australia's largest wholesale 9k and 18k gold chain supplier, the changes represent something that legitimate operators should welcome: the formal recognition that this industry's transparency and integrity matter.

What's Changing and Why It Matters

Under the Tranche 2 reforms, any Australian business buying or selling precious metals, stones, or jewellery products in transactions of A$10,000 or more — whether in cash or equivalent — is now a "designated service provider" subject to full AML/CTF obligations. This includes retailers, wholesalers, pawnbrokers, and second-hand dealers across Australia and New Zealand.

The Australian Institute of Criminology estimates serious and organised crime cost Australian communities up to $60.1 billion in 2020–21 alone. Illicit financing sits at the centre of most crime types, and high-value, portable, easily traded commodities — precious metals and gemstones among them — have historically been attractive to those seeking to launder funds. The Tranche 2 reforms close a longstanding gap, bringing Australia's regime in line with Financial Action Task Force (FATF) international standards.

The practical obligations are substantial. Businesses must now maintain an AML/CTF program, appoint a compliance officer, implement staff training, conduct customer due diligence, and keep detailed transaction records for seven years. AUSTRAC enrolment was required by 29 June 2026.

"The jewellery industry has always relied on trust — between retailers and their customers, and between retailers and their suppliers," said Ron Loccisano, Director of Searay. "These laws simply formalise what responsible operators have been doing all along. If you're running a clean business with documented supply chains and transparent transactions, compliance is not the burden some people fear it will be."

Supply Chain Transparency Is Now a Competitive Advantage

For retailers, one of the most practical implications of AML/CTF compliance is the need to demonstrate that stock has a clear, documented provenance. A retailer facing a compliance audit needs to show not only what they sold, but where it came from — supplier name, product description, country of origin, and the commercial terms of the purchase.

This shifts the value proposition of Australian wholesale suppliers. Working with an established, domestically incorporated wholesaler — one that provides structured invoices, consistent product documentation, and a verifiable supply chain — directly supports a retailer's compliance program in ways that informal or offshore procurement cannot.

Searay's catalogue of 4,500+ products in stock spans Italian-made gold chains across a full range of styles — belcher, curb, figaro, rope, paperclip, franco, anchor, and more — as well as bracelets, bangles, earrings, pendants, and a growing lab-grown diamond jewellery range. Every product is sourced from established manufacturers, with consistent quality control and detailed product records. For retailers building their AML/CTF documentation, that paper trail matters.

"One of the questions retailers should be asking right now is: can I trace every item in my display case back to a legitimate source?" Loccisano said. "If you're buying from suppliers who can't provide full documentation, or sourcing gold through informal channels, the new laws create real risk. Buying through a reputable Australian wholesale jewellery supplier means that documentation already exists."

Diamond Verification and the Record-Keeping Obligation

The AML/CTF changes also sharpen the existing challenge of accurately describing the goods a business is trading. Precise identification of what a product actually is — natural diamond versus lab-grown, 9k versus 18k, genuine precious metal versus plated — is not only good retail practice but increasingly a compliance matter.

As the exclusive Australian and New Zealand distributor of the Yehuda Sherlock AI and Watson AI lab-grown diamond detectors, Searay has long advocated for jewellers to invest in proper stone verification tools. With 16,000-plus detectors sold globally and patent-pending CZ pink-fluorescence detection technology, the Sherlock Holmes line gives retailers the confidence to describe their inventory accurately — a foundation stone of any credible AML/CTF compliance program.

"Knowing exactly what you're selling isn't just about consumer protection — under these new laws, it's also about regulatory integrity," Loccisano said. "A jeweller who can verify their diamonds, document their supply chain, and demonstrate they know who they're selling to is in a very strong position. That's the standard we should all be aiming for."

What Retailers Should Do Now

For Australian jewellers and precious metals dealers who have not yet completed their AML/CTF preparations, the immediate priorities are clear: enrol with AUSTRAC if not already done, appoint a compliance officer, and implement a written AML/CTF program that includes staff training and customer due diligence procedures. AUSTRAC's website provides industry-specific guidance for precious metal dealers, and a number of specialist consultants and law firms have developed frameworks designed for jewellery businesses of all sizes.

Businesses should also review their supplier relationships through a compliance lens — confirming that each supplier can provide adequate product documentation to support the record-keeping obligations that now apply. Seven-year retention of transaction records is a minimum requirement.

About Searay

Searay Pty Ltd is Australia's largest wholesale supplier of 9k and 18k gold chain — Australia's Chain Specialists since the 1990s. With 30-plus years manufacturing, importing, and wholesaling fine jewellery for trade businesses across Australia and New Zealand, Searay supplies a catalogue of more than 4,500 products including Italian-made gold chains, bracelets, bangles, earrings, pendants, and a curated lab-grown diamond range in 9k gold, 18k gold, and platinum. Searay is also the exclusive Australian and New Zealand distributor of the Yehuda Sherlock AI and Watson AI diamond detection systems. Searay is a trade-only wholesale jewellery supplier and does not sell to the public. Learn more at searay.net.au or register for a wholesale account at searay.net.au/pages/signing-up.

Frequently Asked Questions

What are Australia's new AML/CTF laws and do they apply to jewellery retailers?

From 1 July 2026, amendments to Australia's Anti-Money Laundering and Counter-Terrorism Financing Act 2006 require any business buying or selling precious metals, stones, or jewellery in transactions of A$10,000 or more to enrol with AUSTRAC and comply with full AML/CTF obligations, including maintaining a compliance program, conducting customer due diligence, and keeping transaction records for seven years.

What does AML/CTF compliance mean for a jewellery retailer's supply chain?

Retailers need to demonstrate that their stock has a clear, documented provenance. Purchasing gold jewellery and chains through an established Australian wholesale jewellery supplier — one that provides structured invoices and consistent product records — directly supports the documentation requirements of a retailer's AML/CTF program.

Where can jewellery retailers find AML/CTF guidance specific to their industry?

AUSTRAC's website (austrac.gov.au) provides guidance tailored to precious metal and stone dealers. Industry buying groups including Nationwide Jewellers and Showcase Jewellers have also circulated compliance resources for members. Independent legal and compliance specialists can assist with program design and staff training for businesses of all sizes.

How does diamond verification relate to AML/CTF compliance for jewellers?

Accurate product identification is a foundation of AML/CTF compliance — a retailer must be able to correctly describe and document every item they trade. Stone verification tools such as the Yehuda Sherlock AI diamond detector help jewellers confirm whether a stone is natural or lab-grown, supporting both consumer transparency and the precise inventory records now required by law.

Where can Australian jewellery retailers find a compliant wholesale gold chain supplier?

Searay is a trade-only Australian wholesale jewellery supplier with 30-plus years in the industry, supplying 4,500+ products including Italian-made 9k and 18k gold chains with consistent documentation and quality control. Retailers can register for a wholesale account at searay.net.au/pages/signing-up.