--- title: "AML Tranche 2: What Businesses Need to Know | HeadStart Docs" description: "AML Tranche 2 compliance guide for Australian businesses. Understand who is affected, key dates, documentation examples and how to prepare." lang: en-AU json-ld: | [ { "@context": "https://schema.org", "@type": "Organization", "name": "HeadStart Docs", "legalName": "HeadStart Docs Pty Ltd", "url": "https://www.headstartdocs.com.au", "logo": { "@type": "ImageObject", "url": "https://www.headstartdocs.com.au/logo-512.png?v=4", "width": 512, "height": 512 }, "description": "AML/CTF compliance digital products and programs for Australian businesses under Tranche 2 regulations. Free program documents and AML Portal. 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The AML Portal itself is continuously updated to reflect current AUSTRAC requirements and sanctions lists." } }, { "@type": "Question", "name": "What happens after my 12-month AML portal access expires?", "acceptedAnswer": { "@type": "Answer", "text": "Your documentation is yours forever. To continue using the AML Portal (screening tools, compliance calendar, record keeping), you pay $35 per customer CDD. Cancel anytime — no subscription required." } }, { "@type": "Question", "name": "Is HeadStart Docs a law firm?", "acceptedAnswer": { "@type": "Answer", "text": "No. HeadStart Docs is a digital publisher and platform provider. We sell digital compliance products and portal access. We do not provide legal advice. Referrals for legal advice can be made to our related law firm, HeadStart Counsel." } }, { "@type": "Question", "name": "When does AML/CTF Tranche 2 commence in Australia?", "acceptedAnswer": { "@type": "Answer", "text": "Tranche 2 AML/CTF obligations commence on 1 July 2026. All reporting entities in designated sectors including lawyers, accountants, real estate agents, conveyancers, and trust and company service providers must have their AML/CTF programs in place by this date." } } ] }, { "@context": "https://schema.org", "@type": "Article", "name": "AML Tranche 2: What Businesses Need to Know | HeadStart Docs", "description": "AML Tranche 2 compliance guide for Australian businesses. Understand who is affected, key dates, documentation examples and how to prepare.", "url": "https://www.headstartdocs.com.au/tranche-2-resources/understanding-amlctf-tranche-2", "publisher": { "@type": "Organization", "name": "HeadStart Docs" } }, { "@context": "https://schema.org", "@type": "Article", "headline": "AML Tranche 2 Australia: What Businesses Need to Know", "description": "AML Tranche 2 compliance guide for Australian businesses. 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[Privacy Policy](/privacy) Essential OnlyAccept All [Skip to main content](#main-content) [ ![HeadStart Docs](/assets/logo-dark-bg-CUivuKJ8.png)![HeadStart Docs](/assets/logo-light-bg-D5BRMGqf.png) ](/) [Home ](/) Features [Programs ](/programs) Resources Sectors [Log in ](/auth) [Portal](/aml-landing) ![AML Tranche 2 Australia](/assets/aml-summit-sydney-DHvVdDm5.jpg) [Back to Free Resources](/tranche-2-resources) 9 December 2025 • Compliance # AML Tranche 2 Australia: What businesses need to know The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 introduces significant new obligations for Australian businesses. Here's an overview of what Tranche 2 means for affected sectors. ## What is AML/CTF Tranche 2? AML/CTF Tranche 2 represents the most significant expansion of Australia's anti-money laundering and counter-terrorism financing regime since its inception in 2006. The legislation extends regulatory obligations to professional service providers who were previously exempt, including lawyers, accountants, real estate agents and precious metals dealers. This reform aligns Australia with international standards set by the Financial Action Task Force (FATF) and addresses a gap in the financial crime prevention framework. The expansion recognises that professional services can be exploited by criminals to legitimise illicit funds or obscure beneficial ownership. ## Who may be affected? The new obligations may apply to businesses providing designated services in the following sectors (depending on the specific services offered): - **Legal practitioners** - particularly those handling conveyancing, property settlements and trust account services - **Accounting firms** - providing tax agent services, business sale facilitation and financial advisory - **Real estate agents** - when facilitating property transactions - **Conveyancing practitioners** - professionals providing conveyancing services (licensing arrangements vary by state) - **Trust and company service providers (TCSPs)** - establishing or managing corporate structures - **Precious metals dealers** - buying, selling or dealing in gold, silver, platinum or other precious metals [Legal Professionals → ](/law-practice)[Accounting Professionals → ](/accounting)[Real Estate Professionals → ](/real-estate)[Conveyancers → ](/conveyancing)[TCSPs → ](/tcsp)[Precious Metals Dealers → ](/precious-metals)[Property Developers → ](/property-developers)[Insolvency Practitioners → ](/insolvency-practitioners) ## Key dates 31 Mar 2026 AUSTRAC enrolment portal opens 1 Jul 2026 Tranche 2 obligations apply [View full timeline](/timeline) ## Overview of typical obligations Businesses providing designated services generally need to address the following areas. Specific requirements may vary depending on your designated services: ### 1\. AUSTRAC enrolment Reporting entities typically enrol with AUSTRAC before commencing designated services. The enrolment portal opens on 31 March 2026. ### 2\. AML/CTF program Reporting entities generally develop and maintain a written AML/CTF program that identifies, mitigates and manages money laundering, terrorism financing and proliferation financing risks. ### 3\. Customer due diligence (CDD) Reporting entities typically verify the identity of customers before providing designated services. ### 4\. Beneficial ownership A component of Tranche 2 involves identifying and verifying beneficial owners of entities. ### 5\. Reporting obligations Reporting entities may need to submit various reports to AUSTRAC, including Suspicious Matter Reports (SMRs) and Threshold Transaction Reports (TTRs). ## What businesses typically document Businesses affected by Tranche 2 commonly document the following areas. This is general information about what many businesses include - your specific requirements depend on your designated services: **AML/CTF program documentation** Risk assessment and compliance procedures tailored to designated services **Customer identification procedures** Processes for verifying customer identity before providing services **Risk assessment methodology** How the business identifies and rates ML/TF/PF risks **Beneficial ownership records** Documentation of ultimate beneficial owners for entity customers **Suspicious matter reporting workflows** Internal escalation and AUSTRAC reporting procedures **Staff training records** Evidence of AML/CTF training for relevant staff **Independent review schedule** Planning for periodic program reviews ## By sector examples Documentation requirements may vary by sector. Here are examples of what different sectors typically address (depending on their designated services): #### Legal Professionals - Trust account monitoring procedures - Conveyancing verification checklists (QLD & ACT) - Third-party payment protocols #### Accounting Professionals - Business sale facilitation records - Tax agent service scope documentation - Client fund handling procedures #### Real Estate Professionals - Property transaction records - Vendor and purchaser verification - High-value transaction monitoring #### Conveyancers - Settlement documentation procedures - Identity verification workflows - Source of funds documentation #### TCSPs - Company formation records - Beneficial ownership registers - Registered agent procedures #### Precious Metals Dealers - High-value transaction records - Customer verification for bullion sales - Cash transaction monitoring ## Penalties overview The AML/CTF Act provides for significant penalties for breaches, including: - Civil penalties up to $27 million for corporations - Criminal penalties including imprisonment for serious breaches - Administrative penalties and enforceable undertakings ## Preparation considerations Many businesses consider the following when preparing for Tranche 2: 1. Understanding which services may be designated services 2. Conducting a preliminary risk assessment 3. Reviewing current client identification processes 4. Budgeting for compliance costs including training and legal advice 5. Considering who might serve as compliance officer 6. Exploring documentation options ## Useful tools [Implementation Timeline Key dates and milestones ](/timeline)[Readiness Assessment Check your preparation status ](/risk-calculator)[Due Diligence Search Country risk and sanctions screening ](/sanctions-search)[AUSTRAC Guidance Official regulatory information ](https://www.austrac.gov.au/about-us/amlctf-reform) [ Read our complete Tranche 2 Guide Key dates, affected sectors, obligations and how to prepare ](/tranche-2) ### Explore free programs by sector HeadStart Docs™ provides free sector-specific compliance documents to help you start your documentation efficiently. All documents require legal review and tailoring. [View Digital Products](/programs) **Disclaimer:** This article is general information only. It is not legal, financial or compliance advice. HeadStart Docs™ provides free compliance documents, not legal services. We do not guarantee the accuracy of information provided. Obligations may apply depending on your designated services. Always confirm your specific requirements with a qualified adviser. Need a lawyer to review your AML/CTF program? [HeadStart Counsel](https://headstartcounsel.com.au/get-started) offers fixed-fee tailoring from $1,800+GST. Separate entity and engagement. ### Related Articles [ Planning Key dates for Tranche 2 compliance ](/tranche-2-resources/key-dates-tranche-2)[ Best Practices Building an effective AML/CTF program ](/tranche-2-resources/building-effective-amlctf-program)[ Real Estate Real estate AML/CTF documentation ](/tranche-2-resources/real-estate-amlctf-documentation)[ Documentation Risk assessment documentation ](/tranche-2-resources/risk-assessment-documentation) ### Free Compliance Tools [Implementation Timeline Key dates and milestones for Tranche 2 compliance ](/timeline)[Readiness Test Assess your compliance readiness in 2 minutes ](/risk-calculator)[Sanctions Screening Search Australian sanctions lists and country risk ](/sanctions-search) ### Ready to get compliant? Sector-specific compliance documents to help you build your AML/CTF program. [View Programs](/programs) ### Free Tools [Implementation Timeline Key dates and milestones for Tranche 2 compliance ](/timeline)[Readiness Test Assess your compliance readiness in 2 minutes ](/risk-calculator)[Sanctions Screening Search Australian sanctions lists and country risk ](/sanctions-search) ![HeadStart Docs](/assets/logo-dark-bg-CUivuKJ8.png)![HeadStart Docs](/assets/logo-light-bg-D5BRMGqf.png) [![HeadStart Counsel](/assets/headstart-counsel-logo-dark-DW8mV5rY.png)](https://www.headstartcounsel.com.au/)[![HeadStart Search](/assets/headstart-search-logo-dark-C68UhGXl.png)](/sanctions-search)![HeadStart Verify](/assets/headstart-verify-dark-Dtad3197.png) ### Sectors [Accounting](/accounting)[Business Brokers](/business-brokers)[Buyers Agent](/programs/buyers-agent-aml-program)[Conveyancing](/conveyancing)[Insolvency](/insolvency-practitioners)[Legal](/law-practice)[Nominee Director](/programs/nominee-director-aml-program)[Precious Metals, Stones & Products](/precious-metals)[Property Development](/property-developers)[Real Estate](/real-estate)[TCSPs](/tcsp)[Virtual Address](/virtual-address) ### Resources [Free Resources](/tranche-2-resources)[Decision Trees](/decision-trees)[Tranche 2 Guide](/tranche-2)[Podcast](/podcast)[Free Sector Reports](/sector-reports)[Implementation Timeline](/timeline)[Sanctions Search](/sanctions-search)[AUSTRAC Starter Kits](/tranche-2-resources/austrac-starter-program-kits)[Budgeting for Compliance](/tranche-2-resources/budgeting-amlctf-compliance) ### Programs [Portal + AML Programs](/programs)[Pricing](/pricing)[White Label](/white-label)[External CRMs](/integrations)[AML Portal](/aml-landing)[Plug & Play Technology](/plug-and-play)[Lawyer in the Loop](/features/lawyer-in-the-loop) ### Legal [Terms & Conditions](/terms)[Privacy](/privacy) ### Connect [Programs](/programs)[Podcast](/podcast)[Feedback](/report-problem)[Our Mission](/our-mission)[Partnerships](/partnerships) ### Events [AML Conference 2026](/conference) Powered by Stripe SSL Secured 2026 Ready © HeadStart Docs Pty Ltd (ABN 12 691 347 823). 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