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FAQs - The Basics of AML / CTF
What does AML mean?
AML stands for Anti-Money Laundering.
What does CTF mean?
CTF stands for Counter Terrorism Financing.
What is AUSTRAC?
AUSTRAC stands for the Australian Transaction Reports and Analysis Centre, which is Australia's financial intelligence agency and a regulator.
What are the Tranche 2 AML/CTF reforms?
Tranche 2 is an expansion of laws that will bring lawyers, conveyancers, accountants, real estate agents, trust providers and dealers in precious stones, metals and products into Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime. These reforms are designed to stop criminals from using professional services to move or hide money.
Why are lawyers, conveyancers, real estate professionals and trust providers being regulated now?
Because these professions often handle large financial transactions, they can be used to hide money or fund illegal activity. Regulating them helps protect Australia’s financial system and ensures businesses play their part in detecting and preventing crime.
When will AUSTRAC's Tranche 2 Reforms come into effect?
The Australian Government has announced that the Tranche 2 laws are expected to start from 1 July 2026 for newly regulated entities (31 March for existing regulated entities). Businesses will need to prepare to meet the new requirements.
Do I need to register my business with AUSTRAC?
Yes, once the laws take effect, you will need to register with AUSTRAC if your business offers any of the services that fall under the new AML/CTF rules. Registration will be part of becoming a “reporting entity.” Registration will be open from 31 March 2026.
What happens if I don’t comply with AML/CTF laws?
If you don’t meet your AML/CTF obligations, you could face fines, penalties or even criminal charges. Non-compliance can also damage your business reputation and your professional licence.