Risk Assessment Webinar (For New Reporting Entities)

Tranche 2 Reforms Loom

Australia's Anti-Money Laundering and Counter-Terrorism Financing regime is expanding dramatically in 2026 under the Tranche 2 reforms. From July 1, 2026, lawyers, accountants, real estate agents, conveyancers, dealers in precious metals and stones, and trust and company service providers become reporting entities under AUSTRAC supervision.

This closes gaps long highlighted by the Financial Action Task Force, which has criticised Australia for leaving non-financial professions vulnerable to money laundering through property transactions, complex legal structures, and client fund handling.

Existing financial institutions and casinos have operated under the regime since 2006, but the new cohort—estimated at 80,000–90,000 entities—must now conduct enterprise-wide risk assessments identifying money laundering, terrorism financing, and proliferation financing threats specific to their services, clients, and delivery channels.

The shift to an outcomes-oriented approach means regulators will judge programs on effectiveness, not just documentation. This raises the bar but creates challenges for smaller practices lacking dedicated compliance resources.

Deadlines are unforgiving: enrolment opens March 31, 2026, full obligations hit July 1, 2026, and enrolment deadlines extend to late July for some. Transitional rules provide breathing room, such as phased customer due diligence and flexible evaluation timelines, yet the core requirement for a documented risk assessment remains immediate preparation priority.

Stakes are high. Inaction exposes businesses to civil penalties up to AUD 22.2 million per contravention for corporations, personal liability for executives, reputational damage, and potential criminal prosecution. For many professionals, the reforms represent a major cultural and financial shift from minimal oversight to proactive financial crime prevention.