Australia’s AML/CTF regime is expanding under tranche 2. If your business provides designated services, you will need to prepare for new compliance obligations that start on 1 July 2026, with enrolment opening on 31 March 2026. For more details, see AUSTRAC’s overview of the reforms here.
For many businesses, this will change how customers are onboarded and what records are retained.
What this could mean for your business
If your business is in scope for tranche 2, you may need to:
- Enrol with AUSTRAC as a reporting entity
- Establish governance and oversight arrangements
- Develop and maintain an AML/CTF Program
- Conduct risk-based customer due diligence (CDD), including enhanced CDD where required
- Meet reporting and record-keeping obligations
This represents a shift in how many businesses manage onboarding, risk assessment and ongoing monitoring, including how decisions and evidence are recorded and retained. You should assess and determine what actions you need to take to meet your legal and regulatory obligations.
If you have not started preparing yet
Suggested practical steps many businesses can take now include:
- Assessing whether they provide designated services and identify whether AML/CTF obligations may apply
- Review onboarding and ongoing and client data capture for gaps against CDD expectations
- Define how you will maintain a consistent evidence trail that supports internal review
- Plan roles, governance and oversight, including escalation paths and approvals
- Consider technology tools to help support consistency and record keeping, while recognising technology does not replace professional judgement but can support documentation
Introducing Identity and Verification (ID&V)
To support your preparation for tranche 2, we’re launching our Identity and Verification (ID&V) solution in NowInfinity. Designed to enable you to capture and verify client identities efficiently and securely retain required records.
The ID&V service will become available from mid-April 2026. We will share full ID&V service and pricing details soon.
Terms and Privacy Policy update
We will also be updating our Terms and Conditions and Privacy Policy to reflect ID&V.
Webinar: AML/CTF tranche 2: Practical steps for businesses
Join our webinar on Tuesday 17 March 2026, 2:00pm (AEDT) for an overview of what tranche 2 may mean for professional service providers and how to prepare. We will also cover how ID&V will work in NowInfinity.
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