What is Tranche 2?
Tranche 2 is part of Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms. On the 1st of July 2026, a wider group of professional service providers came under AUSTRAC regulation.
These reforms aim to close long-criticised gaps by requiring businesses to conduct risk-based customer checks, implement reporting and compliance programs, and bring Australia into line with international standards.
Download our Tranche Two guide
Who it impacts?
Anyone who provides a designated service regulated by AUSTRAC needs to comply with Tranche 2 regulations.
This includes industries like Law, Accounting, Real Estate, designated non-financial businesses and professionals plus more.
Step 1
Enrol with AUSTRAC
If you provide a designated service you need to enrol with the Australian Transaction Reports and Analysis Centre (AUSTRAC) via their website.
Step 2
Appoint your compliance officer
Every reporting entity must appoint a nominated AML/CTF Compliance Officer. The officer must be employed at management level, be an Australian resident, and be a fit and proper person with sufficient authority and resources to oversee day-to-day compliance with the AML/CTF Act.
Assign and keep track of your compliance officer position within the Personr platform.
Step 3
Develop a risk assessment document
Before building your AML/CTF program, you must identify and assess the money laundering and terrorism financing (ML/TF) risks specific to your business. This includes your customers, the services you offer, your delivery channels, and the countries you deal with.
This risk assessment forms the foundation of your compliance program and must be kept up to date.
Step 4
Set up your AML/CTF program
Using your risk assessment, develop and implement an AML/CTF program tailored to your business. This must include policies, procedures and controls to prevent, detect and report suspicious activity, and comply with all reporting requirements under the AML/CTF Act.
You can host your businesses AML program within the Personr platform. You will be notified when your policies need to be renewed.
Step 5
Begin completing Customer Due Diligence
You must verify the identity of your customers before providing designated services.
With Personr you can complete the full onboarding journey in one platform, and it's as simple as sharing a link. Including KYC, KYB, AML Screening, on-going monitoring and more.
Step 6
Train your staff
All staff must receive regular AML/CTF training to recognise red flags and understand their reporting obligations. Training must be documented and updated as risks evolve.
Use Personr’s integrated partners to train your staff, and track their training within the platform.
Step 7
Record keeping and audit readiness
Ensure all records, risk assessments, and transaction data are stored securely and can be retrieved for 7 years. Remember your first independent review of the program's effectiveness (required periodically, typically every 2-3 years).
Why Personr?
Ready to join your compliance journey
Resources
Learn more about Personr and find compliance resources.
Download our Tranche Two guide
Find out all you need to know about Tranche Two obligations.
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