Biggest compliance event of 2026

AML/CTF Tranche 2 hub

From 1 July 2026, 90,000+ Australian lawyers, accountants, real estate agents, conveyancers, TCSPs and precious metals dealers become AUSTRAC reporting entities for the first time. Here's everything you need to be ready.

Enrol with AUSTRAC by 29 July 2026

Tranche 2 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 extends the regime from financial services to 5 new 'designated service' categories: real estate, lawyers + conveyancers, accountants + tax advisers, trust and company service providers (TCSPs), and dealers in precious metals + stones. AUSTRAC enrolment opens 31 March 2026 and closes 29 July 2026 for the first wave.

If you provide any of the new designated services, you'll need an AML/CTF Program (Part A and Part B), an appointed AML/CTF Compliance Officer, ongoing customer due diligence (CDD) including beneficial ownership, transaction monitoring, threshold transaction reports (TTRs ≥ $10,000), international funds transfer instruction reports (IFTIs), and suspicious matter reports (SMRs) within 24 hours of forming a suspicion.

Penalties are serious: civil penalties up to ~$24.5M per contravention for a body corporate, criminal offences for tipping off, and AUSTRAC actively enforcing (CBA $700M, Westpac $1.3B, SkyCity Adelaide $67M, more pending).

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FAQ

When does Tranche 2 actually start?

AUSTRAC enrolment opens 31 March 2026 and closes 29 July 2026 for the first wave. The full AML/CTF regime takes effect 1 July 2026 — meaning your Part A program, Compliance Officer, CDD and reporting all need to be operating from that date.

Am I a designated service provider?

Real estate agents (buyer/seller/auction services), lawyers + conveyancers (transactions involving real estate, businesses, or trust + company structures), accountants + tax advisers (business or financial transactions on a client's behalf), TCSPs, and precious metals + stones dealers (>$10K) are all in scope. Use the Tranche 2 scope checker tool above to confirm.

What is an AML/CTF Program?

Two parts: Part A is the strategic risk-based framework (risk assessment, governance, training, transaction monitoring, oversight). Part B is the customer due diligence procedure (identification, verification, beneficial ownership, ongoing monitoring). Both must be Board-approved and reviewed annually.

What does customer due diligence (CDD) actually mean?

For each new customer (and re-verified on triggers): collect full name + date of birth + residential address; verify against an authoritative source; identify beneficial owners (any individual with ≥25% ownership or control); identify any politically exposed persons (PEPs); assess money laundering / terrorism financing risk; document the assessment.

When do I file a suspicious matter report (SMR)?

Within 24 hours of forming a suspicion that a transaction may be related to a crime, tax evasion, or terrorism financing. Filing is via AUSTRAC Online. Tipping off (telling the customer you've filed) is a separate criminal offence.

What is a threshold transaction report (TTR)?

Any cash transaction of $10,000 or more (or foreign currency equivalent) — single or aggregated. Filed within 10 business days via AUSTRAC Online.

Do I need PI insurance?

AML/CTF Act doesn't require it, but professional bodies (Law Society state branches, CPA + CA ANZ, REI bodies) generally do. Tranche 2 exposure is now an insurable risk — confirm your PI policy responds to AML/CTF Act civil + criminal exposure.

Will AUSTRAC actually audit small firms?

AUSTRAC has signalled phased enforcement: first 12 months focus on enrolment + Part A program + Compliance Officer appointment. Sample audits expected from 2027. But civil penalties apply from 1 July 2026 — a missed SMR is a missed SMR regardless of when AUSTRAC notices.

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