What is Tranche 2?
- myAML
- Mar 16
- 2 min read
Updated: May 5
Tranche 2 AML/CTF Act Reforms
Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act has been in place since 2006, regulating businesses at risk of being misused for financial crime. These businesses—such as banks, casinos, and foreign currency exchange providers—have been complying with AML laws for years under what is known as Tranche 1.
Now, under the latest reforms, the government is expanding the AML/CTF Act to cover more industries—this expansion is called Tranche 2. If your business provides certain professional, property, or precious metals and stones services, you may soon have AML compliance obligations under the Tranche 2 reforms.
Who Does Tranche 2 Apply To?
Tranche 2 has so far included businesses that provide:
Real estate services – agents, property managers, and property developers.
Dealers in precious metals, precious stones, and jewellery – retailers, wholesalers, and pawnbrokers.
Professional services – accountants, lawyers, conveyancers, and trust & company service providers.
If your business offers these services, you may be required to meet AML/CTF obligations from 1 July 2026.
Why is Tranche 2 Being Introduced?
Criminals exploit gaps in regulation to launder money and move illicit funds undetected. The Tranche 2 reforms aim to strengthen Australia’s AML framework by requiring more industries to monitor transactions, assess risks, and report suspicious activity.
By complying with AML laws, businesses will:
Reduce the risk of being exploited for money laundering.
Enhance trust with customers and regulators.
Avoid fines and penalties for non-compliance.
What Happens Next?
The final rules are still being confirmed.
While the overall framework is clear, more specific details on requirements will be released in late-2025.
Enrolment with AUSTRAC will open around March 2026.
Compliance will be required from 1 July 2026.
What Can You Do Now?
If you're unsure whether your business falls under Tranche 2, a great place to start is by using AUSTRAC’s online tool to check if you’re affected.