New Anti-Money Laundering rules are coming — Tranche 2 reforms expand obligations to professional services, trusts, property, and company formations.
New Anti-Money Laundering Rules Are Coming — Here’s What It Means for Your Business
From 1 July 2026, Australia will introduce significant changes to its Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) framework under what is commonly referred to as the Tranche 2 Reforms.
For many Australian business owners, this will be the first time they hear about AML compliance. However, the changes will affect a wide range of businesses, professional advisers, and service providers across the country.
If your business works with accountants, lawyers, trust structures, company formations, property transactions, or fund management arrangements, understanding these reforms now can help you avoid compliance issues later.
Australia’s existing AML/CTF legislation already applies to industries such as:
The upcoming reforms expand these obligations to additional professional service providers, including businesses involved in:
The objective is to strengthen Australia’s ability to detect and prevent money laundering, terrorism financing, and other financial crimes.
Australia has faced increasing international pressure to strengthen its AML framework.
Many comparable countries already require professional advisers involved in business structuring, trusts, and property transactions to undertake customer due diligence and risk assessments.
The reforms aim to:
For legitimate businesses, these reforms are primarily about increased documentation, verification, and compliance obligations.
Most small business owners will not suddenly become AML reporting entities.
However, many businesses will notice increased compliance procedures when dealing with professional advisers.
You may be asked to provide:
Businesses that previously completed a simple engagement process may now experience more detailed onboarding requirements.
Customer Due Diligence (CDD) is expected to become one of the most important concepts under the new framework.
Before certain services can be provided, advisers may need to verify:
This process helps reduce the risk of businesses being used for unlawful financial activities.
Business owners establishing new companies may notice additional verification requirements before registrations are completed.
Information that may require review includes:
While the overall company formation process will remain straightforward for legitimate businesses, additional compliance checks may become part of the standard process.
Trusts have long been used as legitimate structures for investment, asset protection, succession planning, and tax management.
However, trust structures can also create complexity around ownership and control.
Under the new framework, greater attention may be placed on:
Businesses and investors using discretionary trusts may need to provide additional documentation during establishment or restructuring activities.
Property transactions are expected to receive increased scrutiny under the reforms.
Investors may be asked to provide:
For most investors, these requirements will simply become part of the transaction process.
One of the most searched AML compliance questions relates to beneficial ownership. A beneficial owner is generally the individual who ultimately owns or controls a business, company, trust, or asset, even if ownership is held through multiple entities. Understanding beneficial ownership helps regulators identify the individuals behind corporate structures.
For businesses directly subject to AML obligations, non-compliance may result in:
The exact obligations will depend on the services being provided and whether the business falls within the expanded AML framework.
Although the reforms do not commence until 1 July 2026, businesses should begin preparing early.
Key steps include:
Accountants are expected to play a greater role in helping businesses understand compliance obligations and maintain accurate documentation.
As businesses increasingly use trusts, companies, and investment structures, having reliable records and clear ownership information will become even more important.
The focus is not simply on compliance but on ensuring businesses can continue operating efficiently within the evolving regulatory environment.
At Verve Taxation, we help individuals, investors, and businesses establish and manage compliant business structures through accounting, taxation, corporate secretarial, and advisory services.
As Australia’s AML framework evolves, we continue monitoring regulatory developments to help clients maintain accurate records, understand their obligations, and prepare for future compliance requirements with confidence.
The reforms are expected to commence from 1 July 2026.
Not directly. However, many businesses will experience additional identification, verification, and documentation requirements when dealing with professional advisers.
Beneficial ownership refers to the individual who ultimately owns or controls a company, trust, or other legal structure.
Trust structures may be subject to additional verification and documentation requirements depending on the services being provided.
Yes. Maintaining accurate company records, trust documentation, and ownership information will help businesses adapt more smoothly when the reforms take effect.
