What is AML/CTF Tranche 2?
AML/CTF Tranche 2 refers to the expansion of Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws to include professions such as accountants, lawyers, and real estate agents.
Once introduced, many accounting firms will become reporting entities, meaning they must identify clients, assess risk, monitor activity, and report certain matters.
Why this matters for accounting firms
For many firms, this represents a significant shift from informal due diligence to formal, documented compliance obligations.
You will be required to:
- Verify client identity
- Conduct risk assessments
- Monitor client relationships
- Report suspicious activity
- Maintain detailed records
When will Tranche 2 start?
Tranche 2 AML/CTF Obligations come into effect from 1 July 2026. It is imperative that firms start preparing early as AML/CTF compliance is not something that can be implemented overnight. It requires:
- Defined processes
- Staff onboarding and training
- Documented policies
- Supporting technology
What accountants need to do now
The most effective first step is to begin building your AML/CTF framework. This includes:
- Enrolling with AUSTRAC
- Conducting a firm-wide risk assessment
- Defining your AML/CTF program
- Establishing onboarding and verification processes
- Implementing screening and monitoring
- Ensuring record-keeping and reporting readiness
How technology can support compliance
Manual processes make compliance harder to maintain and scale. A centralised solution, such as InfoTrack’s Compliance Centre, enables firms to:
- Enrol with AUSTRAC
- Onboard and train your staff
- Collect and store client information consistently, compliantly and securely
- Apply risk-based workflows
- Maintain audit-ready records
Final thoughts
Tranche 2 is not just a regulatory change. It is a shift towards structured, accountable compliance. Firms that act early will be in a stronger position to adapt efficiently and confidently.