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AUSTRAC Tranche 2 AML/CTF Reforms (2026)

AUSTRAC Tranche 2 Explained

Tranche 2 expands Australia’s AML/CTF regime to include lawyers, accountants, conveyancers, real estate agents, jewellers, and high‑value dealers. This guide explains exactly what Tranche 2 is, who is captured, and what you must do to comply.

What Is AUSTRAC Tranche 2?

Tranche 2 is the long‑awaited expansion of Australia’s AML/CTF Act to cover **Designated Non‑Financial Businesses and Professions (DNFBPs)**. These professions handle high‑risk financial transactions and are internationally recognised as vulnerable to money laundering and terrorism financing.

Australia has been under pressure from the **Financial Action Task Force (FATF)** for more than a decade to implement these reforms. Tranche 2 brings Australia into alignment with global AML standards.

Why Tranche 2 Matters

AUSTRAC now requires thousands of Australian professionals to maintain AML/CTF Programs, conduct CDD, and report suspicious matters — obligations previously limited to banks and financial institutions.

Who Is Captured Under Tranche 2?

If your business provides any **designated service**, you must comply with the AML/CTF Act — regardless of size, structure, or revenue.

What Tranche 2 Businesses Must Do

1. Maintain an AML/CTF Programme

A written Part A & Part B AML/CTF Programme outlining governance, controls, and CDD procedures.

2. Conduct ML/TF Risk Assessments

Assess risks associated with clients, services, delivery channels, and geographic exposure.

3. Perform Customer Due Diligence (CDD)

Verify identity, understand purpose, and apply enhanced due diligence for high‑risk clients.

4. Report Suspicious Matters (SMRs)

Submit SMRs to AUSTRAC within 3 business days (or 24 hours for terrorism‑related matters).

5. Keep Records for 7 Years

Maintain CDD evidence, SMR logs, and AML/CTF documentation for at least seven years.

6. Ongoing Monitoring

Monitor client activity, update risk assessments, and review your AML/CTF Programme annually.

How AML Shield Pro Helps You Comply with Tranche 2

AML Shield Pro is purpose‑built for Tranche 2 professions. It generates your AML/CTF Programme, ML/TF Risk Assessment, CDD templates, SMR logs, and audit‑ready documents — all in under an hour.

AML/CTF Programme Builder

Generate Part A & B automatically.

Risk Assessment Builder

Identify and score ML/TF risks.

CDD Templates

Verify clients and store evidence.

SMR Logging

Track suspicious matters with timestamps.

Prepare for Tranche 2 Before Enforcement Begins

Build your AML/CTF Programme in under 60 minutes. Avoid penalties up to $18.5 million.

Get Started →