AML/CTF Tranche 2
The 2026 expansion of Australia’s AML/CTF regime that brings real estate professionals, lawyers, conveyancers, accountants, and dealers in precious metals into AUSTRAC’s remit for the first time.
AML/CTF Tranche 2 is the long-awaited extension of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 to cover designated non-financial businesses and professions (DNFBPs). Newly captured sectors include real estate agents, lawyers, conveyancers, accountants, trust and company service providers, and dealers in precious metals and stones.
AUSTRAC enrolment for Tranche 2 entities opens 31 March 2026, with full obligations taking effect 1 July 2026. The reforms align Australia with the Financial Action Task Force (FATF) recommendations and bring Australia closer to the AML/CTF posture already in place across the EU, UK, and most of APAC.
- 01
AUSTRAC enrolment as a reporting entity (open 31 March 2026).
- 02
A documented AML/CTF risk assessment specific to your business model.
- 03
Customer due diligence (KYC) procedures including beneficial ownership identification.
- 04
Ongoing customer monitoring with enhanced due diligence for higher-risk customers.
- 05
Designation of an AML/CTF Compliance Officer with appropriate seniority.
- 06
Suspicious matter reporting (SMR) and threshold transaction reporting (TTR) to AUSTRAC.
- 07
Annual compliance reports to AUSTRAC.
Tranche 2 is the single biggest regulatory expansion in Australian financial-services compliance in over a decade. Most newly-captured firms have no AML/CTF infrastructure today, no compliance officer experience, and no record-keeping setup that would survive an AUSTRAC inspection. The firms that get a head-start before 1 July 2026 will absorb the workload; the firms that wait will face a backlog they can’t staff.