Tranche 2 Timeline (Key Dates)

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  • The Federal Parliament of Australia passed the AML/CTF Amendment Bill 2024.

  • On Friday the 29th of August 2025, AUSTRAC tabled the new Anti-Money Laundering and Counter-Terrorism Financing Rules 2025 (the Rules) in Parliament.

  • AUSTRAC to finalise core guidance on the AML/CTF reforms

  • AUSTRAC to release finlised sector-specific guidance for Tranche 2 entities

  • On the 31st of March 2026, AUSTRAC will open the official registration for all Tranche 2 entities that fall under the new AML/CTF regime.

  • As of 1st of July 2026, the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) rules for Tranche 2 entities are now effective. All affected businesses must ensure full compliance with the following core requirements:

    • have an AML/CTF program

    • have an AML/CTF compliance officer

    • train your staff on the program, internal processes and your ML/TF risks

    • be ready to engage with customers and clients and report suspicious matters.

  • Deadline for all Tranche 2 entities to enrolled with AUSTRAC

  • Australia is scheduled for a Financial Action Taskforce (FATF) mutual evaluation in 2026, which will assess its anti-money laundering and counter-terrorism financing (AML/CTF) system's effectiveness and compliance with international standards.

What is Tranche 2?

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Effective July 1, 2026, the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime will be expanded to include designated non-financial businesses and professions (DNFBPs). These entities, often referred to as 'Tranche 2,' encompass:

  • Real estate professionals (e.g., agents, buyers' agents, and developers)

  • Dealers in precious stones and metals

  • Legal practitioners

  • Conveyancers

  • Accountants

  • Trust and company service providers

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Why are these reforms taking place?

Australia's Tranche 2 AML/CTF reforms signify a decisive strengthening of the national framework to combat financial crime. The foundation of this framework was established by the *Anti-Money Laundering and Counter-Terrorism Financing Act 2006* (AML/CTF Act), which has served as the cornerstone of Australia's efforts to prevent and detect money laundering and terrorism financing.

Initial consultations for Tranche 2 reforms commenced in 2007 to extend these obligations to designated non-financial businesses and professions (DNFBPs). However, implementation was delayed over successive government terms. This regulatory gap was formally identified as a critical deficiency in the 2016 Financial Action Task Force (FATF) mutual evaluation, which highlighted the exclusion of high-risk sectors such as legal, accounting, real estate, and trust and company services.

The recent passage of the *AML/CTF Amendment Bill 2024* in November 2024 rectifies this long-standing issue. This pivotal legislation mandates that Tranche 2 entities—including lawyers, accountants, real estate agents, and conveyancers—comply with core obligations for customer due diligence, suspicious matter reporting, and maintaining AML/CTF programs, with enforcement commencing 1 July 2026.

Furthermore, the reforms modernize the entire regime to counter emerging threats, including the financing of proliferation networks and the evolving digital currency ecosystem. These enhancements are strategically designed to ensure full alignment with international standards and to construct a more powerful, integrated financial intelligence capability.

A principal objective of this legislative agenda is to secure a successful outcome in Australia's upcoming 2026 FATF mutual evaluation. Robust implementation is imperative to demonstrate a effective and compliant AML/CTF system. Failure to meet FATF standards carries substantial material consequences, most notably the potential for greylisting—inclusion on the FATF's "Jurisdictions Under Increased Monitoring" list.

Such an outcome would signal strategic deficiencies in Australia's financial integrity framework, eroding international confidence, deterring foreign investment, and imposing significant additional due diligence costs on Australian businesses. Consequently, these reforms are not merely regulatory compliance but are essential to safeguarding the integrity, competitiveness, and global standing of the Australian economy.