New Anti Money Laundering and Counter Terrorism Financing reforms come into effect from 1 July 2026. Here’s what that might mean for your business.
Financial crime, including organised crime and money laundering, can have serious and wide reaching impacts. The Australian Government is taking further action to deter, detect and disrupt this type of crime with new measures, including upcoming reforms to Anti Money Laundering and Counter Terrorism Financing (AML/CTF). From 1 July 2026, AML/CTF reforms will apply to a range of businesses known as Tranche 2 entities.
What does Tranche 2 mean?
Under the reforms, Tranche 2 refers to a new set of entities who will be impacted by AML/CTF obligations. Previously, these obligations applied to organisations such as banks and financial institutions. Now, a wider range of businesses will have these obligations too.
Tranche 2 entities include:
- Real estate professionals (for example, agents, buyer’s agents and property developers)
- Dealers in precious metals, stones and products (including jewellers)
- Conveyancers
- Lawyers
- Accountants
- Trust and company service providers
If your small business is a Tranche 2 entity, the new reforms will apply to your business from 1 July 2026. You will need to make sure your business meets new requirements, including having an AML/CTF program in place.
What are the new AML/CTF reforms?
These reforms have been designed to help prevent money laundering and terrorism financing, bringing Australia in line with the international standards for preventing and addressing these crimes. The changes from 1 July 2026 mean that more businesses will be involved in helping to prevent financial crimes, for example, by reporting certain transactions and suspicious activities.
If you’re running a Tranche 2 business, you’ll need to be ready for the changes to position your business to help deter, detect and disrupt financial crimes, including money laundering and terrorism financing.
How to prepare for the reforms
The Australian Transaction Reports and Analysis Centre (AUSTRAC) is Australia’s AML/CTF regulator. It has developed a range of resources to support businesses through these reforms.
As a first step, check if your business will be regulated under the Tranche 2 reforms.
If your business will be regulated, you will then need to:
- Enrol your Tranche 2 business with AUSTRAC
- Develop an AML/CTF program tailored to your business operations
- Know how to assess and manage any money laundering/terrorism financing risks through your business
- Keep records and report certain transactions
For details and support tailored to your type of business, explore these resources:
Key dates to know
- 31 March 2026: AUSTRAC enrolment opens
- 1 July 2026: New obligations commence
- 29 July 2026: Deadline to enrol for AUSTRAC
It’s a good idea to get organised and start taking steps towards aligning your business with these reforms, rather than leaving it to the last minute. The earlier you take action, the more time you will have to prepare and put plans in place.
More information
Overall, these reforms are designed to protect your business from criminal exploitation and help support a safer Australian financial system. Check the AUSTRAC website for information, resources and guides to support your business through this process. If you need help getting started, contact our SBDC free business advisory service.
