AUSTRAC’s “Conducting Your Risk Assessment” Webinar: What Tranche 2 Businesses Need to Know

As Australia moves closer to implementing the next phase of AML/CTF reforms, AUSTRAC has launched a series of education initiatives to help new reporting entities—especially those in the Tranche 2 sectors—understand how to build a compliant and practical ML/TF risk assessment. One of the most valuable of these resources is AUSTRAC’s “Conducting Your Risk Assessment” webinar series, running throughout early 2026.

Whether you're a real estate agency, accountant, lawyer, conveyancer, or other newly captured entity, this webinar provides a clear roadmap for developing a structured, defensible risk assessment framework.

In this article, we break down the key themes and AUSTRAC expectations highlighted in the webinar and explain what it means for your AML/CTF readiness.

Why AUSTRAC Is Focusing on Risk Assessments

AUSTRAC’s reform education program aims to help new reporting entities understand their obligations and adopt a risk‑based approach as early as possible. As part of this initiative, AUSTRAC is conducting dedicated risk assessment webinars that introduce the purpose of ML/TF risk assessments, how they fit within the broader AML/CTF regime, and how businesses can apply AUSTRAC’s quick guides in practice.

These webinars are designed specifically for new reporting entities that will soon be required to comply with AML/CTF laws and need guidance on where to begin.

Key Learning Areas Covered in the Webinar

According to AUSTRAC’s official event description, the webinar walks participants through the core building blocks of an effective ML/TF risk assessment. These include:

1. Understanding the Purpose of a Risk Assessment

AUSTRAC emphasises that a risk assessment is the foundation of a business’s entire AML/CTF Program. It enables reporting entities to:

• identify vulnerabilities in their business,

• understand how ML/TF or proliferation financing risks may arise, and

• build appropriate mitigation controls.

The session highlights that an ML/TF risk assessment helps ensure the business can detect, deter, and avoid being exploited by criminals.

2. Key Elements of an Effective ML/TF Risk Assessment

During the webinar, AUSTRAC explains the critical components that must be present in a risk assessment framework:

• identification of inherent risks,

• assessment of customer, service, channel, and geographic risks,

• evaluation and prioritisation of risks, and

• documenting the methodology used.

These expectations align closely with AUSTRAC’s broader reform guidance, which outlines a structured approach to identifying, assessing, and prioritising ML/TF risks under the AML/CTF Act.

3. Applying a Structured Methodology

One of the strengths of the webinar is its focus on practical application. AUSTRAC walks through how to use a repeatable and structured methodology to identify and assess risks. The approach is tailored to:

• the size, nature, and complexity of the business, and

• sector‑specific ML/TF risks.

Participants are encouraged to use AUSTRAC’s ML/TF risk assessment framework quick guides, which provide risk indicators and examples specific to each Tranche 2 sector.

4. Sector‑Specific Risks and Real‑Time Activities

The webinar includes interactive activities allowing participants to practice applying AUSTRAC’s framework to real‑world scenarios. AUSTRAC reinforces that risk assessments must consider:

• customer types,

• delivery channels,

• designated services,

• geographic exposure, and

• emerging risks such as cyber-enabled crime and proliferation financing.

These obligations are clearly stated in AUSTRAC’s risk assessment guidance under AML/CTF Reform.  

Who Should Attend These Webinars?

The webinar series is targeted at new reporting entities, particularly those now captured under the upcoming reforms. AUSTRAC recommends participation from:

• compliance officers,

• business owners,

• directors and principals,

• risk and operations managers.

Engagement in these sessions signals that a business is proactively preparing for its AML/CTF obligations and taking financial crime risk seriously.

Why This Matters for Tranche 2 Entities

For many newly captured sectors, this is the first time they will be required to undertake a formal ML/TF risk assessment. AUSTRAC’s expectations are clear:

• Your risk assessment must be tailored, documented, and evidence‑based.

• It must cover both current services and any planned designated services.

• It must include an assessment of customer risks, service risks, delivery channels, and geographic exposure.

• Your risk assessment becomes the basis for assigning risk ratings to customers and building your AML/CTF Program.

These requirements form the backbone of risk‑based compliance under the AML/CTF regime.

Final Thoughts: Start Early and Build a Defensible Framework

AUSTRAC’s “Conducting Your Risk Assessment” webinar provides a clear pathway for Tranche 2 businesses preparing for AML/CTF obligations. The key message is simple: your risk assessment is not a box‑ticking exercise—it is the foundation for your entire compliance framework.

As the reforms approach, now is the time to:

• understand your sector‑specific risks,

• build a structured methodology,

• document your assessment thoroughly, and

• prepare to embed these insights into your AML/CTF Program.

If you’re looking for expert support developing a firm‑wide ML/TF risk assessment tailored to your business, AML Advisers can help you design, document, and implement a framework that meets AUSTRAC’s expectations and protects your business from financial crime.

👉 Book a Tranche 2 Readiness Session with AML Advisers today and see how we can assist you with your Tranche 2 prep!