Australia’s AML reforms pull up to 100,000 more businesses into compliance

Australia’s Tranche 2 AML/CTF reforms took effect July 1, bringing lawyers, accountants, real estate agents and other firms into AUSTRAC’s regime for the first time. Aus AML has launched a compliance-as-a-service offering aimed at helping those businesses meet the new obligations.

Why it matters: - Australia’s AML/CTF regime now covers a far larger slice of the economy, with AUSTRAC estimating 90,000 to 100,000 new reporting entities entering the system. - The reforms move many professional services and high-value goods businesses into mandatory compliance for the first time, raising costs, operational risk and regulatory exposure. - Penalties can reach up to $33 million per contravention for corporations and $6.6 million for individuals at current penalty unit values.

What happened: - Australia’s Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 passed Parliament on 29 November 2024. - Tranche 2 obligations began on 1 July 2026. - The new rules apply to lawyers, conveyancers, accountants, real estate agents, trust and company service providers, and dealers in precious metals and stones. - AUSAML.com launched a compliance-as-a-service offering for businesses entering the regime.

The details: - New reporting entities must enrol with AUSTRAC, complete a money laundering and terrorism financing risk assessment, implement a written AML/CTF Program, appoint a qualified AML/CTF Compliance Officer, conduct Customer Due Diligence before providing designated services, and file Suspicious Matter Reports when suspicions arise. - The obligations require a risk-based approach that also covers proliferation financing risk. - Businesses must identify the beneficial owners of corporate and trust clients. - Suspicious Matter Reports must be filed within three business days of forming a suspicion, or within 24 hours for terrorism-related matters. - Several penalties apply on a strict liability basis, meaning AUSTRAC does not need to prove intent. - AUSTRAC confirmed the obligations begin on 1 July 2026 regardless of enrolment status. - AUSTRAC can pursue civil penalty proceedings and cancel registration for entities that do not comply. - AUSAML.com’s offering covers initial risk assessment, AML/CTF Program development, ongoing monitoring, reporting and regulatory liaison. - The service includes providing a named AML Compliance Officer for each business. - The company says the package also includes AUSTRAC enrolment support, staff training, customer risk assessment guidance, enhanced due diligence advice and help with suspicious matter reporting. - AUSAML.com says its team includes former regulators, senior compliance leaders and locally based AML specialists.

Between the lines: - The reforms shift AML compliance from a niche function to a mainstream operating requirement for many firms. - The size of the new regulated population creates a large market for outsourced compliance support, especially for smaller businesses without in-house expertise. - AUSAML.com is positioning itself as a turnkey provider for businesses that need to meet deadlines quickly and avoid enforcement risk.

What's next: - Businesses covered by Tranche 2 now need to complete their enrolment and build compliant AML/CTF controls. - AUSTRAC enforcement activity is likely to become a major focus as the new cohort comes under supervision. - AUSAML.com expects demand for compliance support to grow as firms move from preparation to implementation.

The bottom line: - Australia’s AML reforms have widened the net sharply, and thousands of professional and trade businesses now need a compliance framework fast.