Legal Professionals
Lawyers and conveyancers providing specified legal services become AUSTRAC reporting entities under Tranche 2.
AUSTRAC Tranche 2
AUSTRAC Tranche 2
AUSTRAC Tranche 2 extends AML/CTF obligations to lawyers, accountants, real estate agents, and TCSPs from July 2026. Prepare for new AUSTRAC registration and reporting requirements.
Key Information
Understanding AUSTRAC Tranche 2
AUSTRAC Tranche 2 marks the most significant expansion of Australia's anti-money laundering regime since the AML/CTF Act commenced in 2006. From 1 July 2026, professional gatekeepers including lawyers, accountants, real estate agents, and trust/company service providers will become AUSTRAC reporting entities.
This reform addresses longstanding FATF criticisms about Australia's incomplete coverage of sectors commonly exploited for money laundering. Affected professionals must prepare for AUSTRAC registration, AML/CTF program development, customer due diligence requirements, and suspicious matter reporting obligations.
Sectors Affected by AUSTRAC Tranche 2
Accounting Professionals
Accountants, auditors, and tax agents providing designated financial services must register and comply.
Real Estate Sector
Real estate agents facilitating property transactions are captured as reporting entities.
Trust & Company Services
Providers of company formation, directorship, registered office, and trustee services face new obligations.
Precious Items Dealers
Dealers in precious metals and stones above specified thresholds enter the AUSTRAC regime.
AUSTRAC Registration
All Tranche 2 entities must register with AUSTRAC and designate an AML/CTF compliance officer.
Frequently asked questions
What is AUSTRAC Tranche 2?
AUSTRAC Tranche 2 refers to the expansion of Australia's AML/CTF regime to cover designated non-financial businesses and professions (DNFBPs). These include lawyers, accountants, real estate agents, trust and company service providers, and dealers in precious metals and stones.
When does AUSTRAC Tranche 2 commence?
Tranche 2 commences on 1 July 2026. Some transitional arrangements may apply, but affected businesses should begin preparing their compliance frameworks well in advance.
What are Tranche 2 AUSTRAC obligations?
Tranche 2 entities must: register with AUSTRAC, develop an AML/CTF program, conduct customer due diligence, report suspicious matters and threshold transactions, maintain records for 7 years, and appoint a compliance officer.
Why is Tranche 2 being implemented?
Tranche 2 implements FATF recommendations to address money laundering risks through professional gatekeepers. The FATF identified Australia's failure to regulate these sectors as a significant deficiency in its AML/CTF framework.
Related resources
AUSTRAC Tranche 2 Preparation
ARCaml helps professional services firms prepare for AUSTRAC Tranche 2 with tailored compliance solutions.