AUSTRAC Tranche 2 — The Complete Guide for Australian Businesses (2026)
Everything you need to know about AUSTRAC's expanded AML/CTF regime: who it affects, what you must do before 1 July 2026, and how to choose compliant software.
AUSTRAC Tranche 2 is the second wave of Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms. It expands the existing regime — which already covers banks, casinos, and remittance providers — to a much broader set of industries known as designated non-financial businesses and professions (DNFBPs). From 1 July 2026, real estate agents, accountants, lawyers, conveyancers, finance brokers, motor vehicle dealers, and dealers in precious metals and stones must enrol as reporting entities with AUSTRAC and implement a full AML/CTF compliance program.
The reforms are designed to close gaps that criminals have historically exploited to launder money through Australian property, professional services, and high-value goods. For businesses newly captured by Tranche 2, this means a significant shift: you are no longer just providing a service; you are now a gatekeeper in Australia's financial crime defences. That brings legal obligations, but also an opportunity to demonstrate trust and professionalism to your clients by getting your compliance house in order before the deadline.
A compliant AML/CTF program is not a single document or software purchase. It is a living system that covers risk assessment, customer due diligence, ongoing monitoring, reporting suspicious activity, and record-keeping — all tailored to the specific risks of your sector and client base. The good news is that modern AML software can automate much of the heavy lifting, from identity verification and PEP screening to transaction monitoring and audit-ready reporting.
Who does Tranche 2 affect?
Tranche 2 captures businesses and professionals who have historically been outside the AML/CTF net. If your business falls into one of these categories, you need to act before 1 July 2026.
Real estate agents
Agents involved in property sales, purchases, or settlements must enrol and verify vendors, purchasers, and beneficial owners.
Lawyers & conveyancers
Legal practitioners acting in property or financial matters must implement CDD, ongoing monitoring, and SMR workflows.
Accountants & bookkeepers
Practices preparing for or carrying out transactions on behalf of clients are captured under the expanded regime.
Finance brokers
Mortgage and finance brokers arranging loans or credit facilities must monitor for suspicious structuring and report red flags.
Car dealers
Motor vehicle dealers handling high-value transactions, especially cash or third-party payments, face new reporting obligations.
Jewellers & precious metal dealers
Dealers in jewellery, bullion, and precious stones must verify high-value customers and keep transaction records.
Key AUSTRAC requirements
A compliant AML/CTF program under Tranche 2 must cover the following core obligations. Most businesses use dedicated software to manage these requirements efficiently.
- Enrol as a reporting entity with AUSTRAC and appoint a compliance officer
- Develop a written AML/CTF program with Part A risk assessment and Part B applied controls
- Conduct customer due diligence (CDD) — identify and verify customers and beneficial owners
- Screen customers against sanctions, PEP, and adverse media lists on an ongoing basis
- Monitor transactions for suspicious activity and lodge Suspicious Matter Reports (SMRs) within statutory timeframes
- Maintain records for at least seven years and submit prescribed reports (SMRs, threshold transaction reports where applicable)
- Regularly review and update your risk assessment and program as your business and threats evolve
How to compare AML software options
Not all AML software is built for Australian Tranche 2 requirements. Some platforms offer generic KYC checks without the AUSTRAC-specific program documentation, SMR workflows, or local sanctions list coverage you need. When evaluating providers, look for tools that are explicitly marketed as AUSTRAC-ready and that understand your sector's workflows.
Key comparison criteria include: sector-specific templates (real estate transaction checklists are very different from accounting client onboarding), integration with your practice management or CRM system, pricing transparency (watch for per-seat vs per-transaction models), support quality (do they understand AUSTRAC reporting timelines?), and whether the platform can grow with you from a basic checklist tool to a full managed compliance service. Start with a free trial or demo where possible, and ask for references from businesses similar to yours.
CompareAML independently shortlists providers based on these exact criteria. Our matching engine filters for sector fit, AUSTRAC alignment, pricing transparency, and support quality — so you only speak to providers that are genuinely relevant to your business.
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