Starts 1 July 2026

Your Complete Tranche 2
Compliance Guide

Everything you need to know about Australia's new AML/CTF obligations for real estate agents, lawyers, accountants, and trust service providers.

31 Mar 2026
Enrolment Opens
1 Jul 2026
Compliance Starts
$19.8M
Max Penalty
~50,000
Businesses Affected

Your 7 Core Obligations

What you must do, deadlines, and how FreeAML makes it simple (and affordable).

1. AUSTRAC Enrolment

By 29 July 2026

All Tranche 2 businesses must enrol with AUSTRAC via the Business Portal. You'll need your ABN/ACN, business structure details, beneficial ownership information, and designated services list.

How FreeAML helps:

FREE compliance program generator guides you through the exact information needed. No confusing forms.

$0

2. AML/CTF Program

Before 1 July 2026

Document and implement a written program that identifies ML/TF risks, describes your CDD and reporting processes, defines governance roles (Governing Body, Senior Manager, Compliance Officer), and includes an independent review schedule.

How FreeAML helps:

FREE AI-powered risk assessment (5 minutes) generates your complete AUSTRAC-compliant program. Auto-updates when regulations change.

$0

3. Customer Due Diligence (CDD)

Before every transaction

Verify client identity using reliable, independent sources. For individuals: photo ID + biometric liveness. For entities: ASIC/ABN registry + beneficial owner identification (25%+ ownership). Screen all clients against PEP/sanctions lists.

How FreeAML helps:

Individual verification $15, entity $35. Includes ID verification, AML screening, UBO detection, and AUSTRAC-compliant reports. 60-second process. Client-pays option = $0 for you.

$15/person, $35/entity

4. Ongoing Monitoring

Continuous

Monitor client transactions and behavior for suspicious activity. Update CDD when risk factors change. Review high-risk clients more frequently (PEPs, complex structures, unusual wealth).

How FreeAML helps:

FREE ongoing AML monitoring included with every verification. Automatic alerts when watchlist status changes.

$0

5. AUSTRAC Reporting

Within strict timeframes

Suspicious Matter Reports (SMRs): 3 business days (24hrs for terrorism). Threshold Transaction Reports (TTRs): Cash $10k+, report within 10 days. International Funds Transfer Instructions (IFTIs): 10 days. Annual Compliance Report: 1 Jan - 31 Mar each year.

How FreeAML helps:

FREE report templates pre-filled with your client data. Submit directly from dashboard. Automatic deadline reminders.

$0

6. Staff Training

Initial + ongoing

Train all staff on AML/CTF obligations, ML/TF risks, consequences of non-compliance, and your business's specific policies. Training must be tailored (not generic), role-specific, and regularly updated.

How FreeAML helps:

FREE 4-module training course with quizzes and certificates. Role-specific content. Tracks completion for AUSTRAC audits.

$0

7. Record Keeping

7 years minimum

Maintain comprehensive records of all CDD, transactions, reports, training, and compliance decisions. Records must be readily accessible for AUSTRAC audits.

How FreeAML helps:

FREE 7-year secure Australian cloud storage for all verification records. Export-ready for AUSTRAC.

$0

Key Dates

Mark these deadlines in your calendar.

31 March 2026
AUSTRAC enrolment portal opens
1 July 2026
Tranche 2 commences — all obligations apply
29 July 2026
Enrolment deadline (if providing services on Day 1)
1 Jan 2027
First Annual Compliance Report due (1 Jan - 31 Mar)
Non-Compliance Penalties

The Cost of Non-Compliance

AUSTRAC has significant enforcement powers. Penalties are severe and actively prosecuted.

Criminal Prosecution

Up to 2 years imprisonment
Individuals

Civil Penalties

Up to $19.8 million
Corporations

Infringement Notices

$16,500 - $105,000
Per breach

Professional Deregistration

Loss of license
Industry-specific

Compliance is not optional

AUSTRAC actively monitors reporting entities and conducts audits. Non-compliance triggers investigations, enforcement actions, and public naming. With FreeAML, basic compliance costs $0/month. The cost of non-compliance could destroy your business.

Start Complying Today — For Free

No subscription. No setup fees. Verify your first client in 60 seconds. All compliance tools included free.

Frequently Asked Questions