Tranche 2 AML Compliance FAQs

"Tranche 2" refers to the second phase of Australia's anti-money laundering and counter-terrorism financing (AML/CTF) reforms. These reforms extend AML/CTF obligations to additional high-risk, non-financial sectors that were not covered under the initial AML/CTF Act.

From 1 July 2026, certain services provided by the following professions and businesses will be regulated by AUSTRAC:

• Real estate professionals - e.g. real estate agents, buyers' agents, property developers
• Legal practitioners - lawyers and conveyancers (especially when assisting in transactions)
• Accountants and accounting firms
• Trust and company service providers - businesses that assist with creating or managing companies, trusts, partnerships, etc.
• Dealers in precious metals, stones and products - e.g. jewellers, gold/diamond dealers, etc.

These sectors are being added because they are recognised globally as vulnerable to money laundering if left unregulated. The Tranche 2 reforms aim to close those gaps, protect businesses from being misused by criminals, and align Australia with international AML standards.

The AML/CTF obligations for Tranche 2 entities commence on 1 July 2026. Key dates leading up include:

Approximately 90,000 new businesses across these sectors will become reporting entities under Tranche 2. The reforms are significant, so preparing early is crucial.

A "reporting entity" is any business or person who provides a designated service as specified in the Act. In Tranche 2, lawyers, accountants, real estate professionals, etc., will become reporting entities when they engage in certain activities for clients - those activities are the "designated services."

Examples of newly designated services include:

• Real estate transactions: Acting as an agent for buyers or sellers in the purchase or sale of real property
• Dealing in companies or legal arrangements: Assisting clients in the purchase/sale of businesses or arranging transfers of controlling interests (25%+ ownership)
• Managing client assets or accounts: Holding or managing funds or other assets for a client as part of providing a professional service
• Company and trust services: Acting as a professional trustee, company director or nominee shareholder
• Precious metals and stone dealings: Buying or selling precious metals, stones or jewellery for cash or cryptocurrency worth A$10,000 or more

If you're unsure whether your specific services are designated, AUSTRAC provides an online tool to check if you will be regulated.