Tranche 2 is the next phase of AML/CTF regulatory obligations in Australia, coming into effect in 2026. It expands compliance requirements to cover additional professionals and activities that were not fully included under Tranche 1. This includes certain property transactions, complex onboarding of clients, and reporting obligations when handling client money. Professionals captured under Tranche 2 include lawyers, conveyancers, accountants, and real estate agents involved in these activities. Organisations must ensure they meet these requirements to remain compliant with AUSTRAC regulations.

Tranche 2 obligations are expected to take effect in 2026. Organisations should start preparing now to ensure compliance.

AML/CTF stands for Anti-Money Laundering and Counter-Terrorism Financing. It is designed to prevent illegal funds and terrorism financing from entering the financial system.

It refers to the processes Tranche 2 entities must follow to prevent money laundering and terrorism financing. This includes verifying client identity, assessing risk, and monitoring transactions.

AUSTRAC are expected to release the starter packs in January 2026.

Non-compliance with Tranche 2 can lead to civil and criminal penalties under AUSTRAC regulations, including fines and reputational risk. However, AUSTRAC has indicated that during the first year of Tranche 2, they do not anticipate issuing substantial fines.

Yes. AML/CTF regulations will apply to legal professionals from 1 July, requiring firms to implement compliant onboarding and client due diligence processes. 

This will vary depending on the services provided. Generally, any activity involving handling client money or property transactions may now fall under AML obligations.

Verification of Identity (VOI) is the process of confirming a client’s identity to reduce fraud and meet regulatory requirements in property transactions and legal matters. 

The Compliance Centre helps firms meet AML/CTF obligations by combining VOI, client onboarding, risk checks and compliance workflows in a single platform. 

The Compliance Centre includes VOI, client questionnaires, PEPs and sanctions screening, adverse media checks, and onboarding workflows.