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AML/CTF reform: why your business may now be on AUSTRAC’s radar

Appears in Compliance

Australia’s anti-money laundering laws have just had their biggest shake-up in nearly 20 years. Here’s what you need to know in 60 seconds.

  1. Everyone’s talking about it: Australia’s AML/CTF regime now covers lawyers, conveyancers, accountants, real estate professionals and other “gatekeepers” for the first time. These reforms are known as Tranche 2 and the new obligations started on July 1 2026.

  2. How we got here: Australia has long been an outlier. Most comparable countries already regulated these professions. Parliament passed the AML/CTF Amendment Act in late 2024. Banks, casinos and other existing reporting entities got updated obligations first, followed by the newly covered sectors.

  3. Why you should care: Property, trusts and company structures are classic ways to move dirty money and professionals often sit in the middle of those deals. If you provide a regulated service and aren’t compliant, you risk serious civil penalties, reputational damage and, in the worst cases, criminal liability.

  4. Two sides of the story: Supporters say it closes a major loophole, protects the industry’s reputation and brings Australia into line with global standards. Critics, particularly smaller firms, say the compliance burden and cost are heavy and that it could squeeze out small practices.

  5. The fix (what compliance looks like): Covered businesses need to:

    • Enrol with AUSTRAC

    • Assess their money laundering and terrorism financing risks

    • Adopt and maintain an AML/CTF program

    • Appoint a compliance officer

    • Verify customer identity and carry out due diligence

    • Monitor transactions and report suspicious matters to AUSTRAC

  6. What could derail it: Manual identity checks, paper-based processes and poor record-keeping make ongoing due diligence hard to sustain. Getting it wrong can mean enforcement action, and the rules differ depending on which services you provide.

  7. What happens next: AUSTRAC is expected to focus on education and guidance first, then enforcement as the regime beds in. Watch for updated AUSTRAC guidance and any new regulatory priorities for the newly covered sectors.

The bottom line: This isn’t a tick-the-box exercise anymore. Compliance now has to be built into everyday workflows and the businesses that automate it early will be better placed than those scrambling later.