What is Tranche 2?

Tranche 2 is the extension of Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act to a new group of professions — including lawyers, conveyancers, accountants, real estate agents, and trust and company service providers. From 1 July 2026, these businesses must meet the same kind of AML/CTF obligations that banks and casinos have followed for years: knowing their customers, assessing risk, and reporting suspicious activity.

Last updated 13 July 2026

Sound familiar?

You've heard 'Tranche 2' mentioned by a colleague, industry body, or in the news, but nobody has explained what it actually means.
You're not sure if this is a new law, an extension of an existing one, or something that only applies to banks.
You don't know when it starts or whether you're already meant to be doing something about it.

Why is it called 'Tranche 2'?

Australia's AML/CTF Act has covered banks, financial services, and gambling providers since 2006 — that's now referred to as Tranche 1. Tranche 2 finally extends coverage to so-called 'gatekeeper' professions, after roughly 15 years of delay and repeated pressure from the international Financial Action Task Force (FATF) over the gap in Australia's regime.

Which professions does Tranche 2 cover?

Lawyers and conveyancers
Accountants and bookkeepers (providing certain services)
Real estate agents
Trust and company service providers
Dealers in precious metals and stones
Certain financial and lending services not already covered under Tranche 1

What's actually changing?

Covered businesses become 'reporting entities' and must enrol with AUSTRAC, assess their money laundering and terrorism financing risk, build a written AML/CTF program, verify customer identity, keep records, and report suspicious matters — obligations that didn't previously apply to these professions.

Key date

The obligations commence 1 July 2026, with enrolment required by 29 July 2026. Enrolment opened 31 March 2026.

Where this leaves you

You understand what Tranche 2 is, who it affects, and why it exists — enough to know whether you need to look further into your own obligations.

Not sure what this actually requires you to do? See what your obligations cover →

What are my AML/CTF obligations? →

A lightweight AML platform, built exclusively for Tranche 2

Get AUSTRAC's mandates done as fast and effortless as possible.

Built around AUSTRAC's actual requirements
Single maintained compliance file
No compliance expertise required
25 minute initial compliance setup
Obligations calendar & reminders
Instant data export

Setup: ~25 minutes Ongoing: minutes per client Price: $8 per KYC

See the product →

Frequently asked questions

Is Tranche 2 a new law or an amendment?

An amendment. It extends the existing Anti-Money Laundering and Counter-Terrorism Financing Act 2006, passed in 2024, to new professions rather than creating a separate act.

Does Tranche 2 apply outside Australia?

No — Tranche 2 is Australian legislation regulated by AUSTRAC. It applies to designated services provided in Australia, regardless of where a client is based.

What happens if my business ignores Tranche 2?

AUSTRAC has said it will take a proportionate, education-first approach in the first year, but it has enforcement powers including infringement notices and civil penalties for entities that don't engage at all.

Do I need a lawyer to understand my obligations?

Not necessarily — AUSTRAC publishes free starter kits and sector guidance, and plain-English guides like this one cover the basics. Legal advice is worth getting for complex or high-risk structures.

This is general information, not legal advice. Always verify current requirements on the AUSTRAC website or seek professional advice for your specific situation.