Why your tech partner is key to surviving AML Tranche 2

The countdown to Tranche 2 of Australia's AML/CTF (Anti-Money Laundering/Counter-Terrorism Financing) regime is well underway, and while legislation doesn't kick in until July 2026, the tech race starts now.

In an era where compliance is digital, your choice of technology partner is not just important, it's essential. Tranche 2 isn't a mild policy adjustment; it's a fundamental rewiring of how legal, property, and professional services firms operate. And the question every firm should be asking isn't just "Are we ready?", it's "Is our tech stack ready to carry us through this transformation?"

What's at stake: An end to the "No RegTech" zone

For decades, lawyers, conveyancers, accountants, and real estate agents have worked outside the AML/CTF net, but from 1 July 2026, those days are over. Tranche 2 mandates full AUSTRAC enrolment and compliance for designated services, aligning these professionals with the same obligations banks have long shouldered.

That means onboarding now comes with risk assessments, identity verification, source-of-funds checks, and suspicious matter reporting. In practice, this will force a convergence of legal ops and regtech, and a complete rethink of how firms manage compliance at scale, especially when client turnaround time is everything.

Tranche 2 tech requirements: More than just tick-boxes

Here's what a future-ready firm will need, baked into its digital DNA:

• Dynamic AML risk assessments at both business and transaction levels
• Automated ID verification (VOI) integrated into onboarding
• Beneficial ownership tracing that cuts through complex corporate structures
• Real-time alerts for PEPs (politically exposed persons) and sanctions
• Workflow triggers for when suspicious activity must be reported
• Analytics dashboards to support annual AUSTRAC reporting

Manually managing these processes isn't just inefficient, it's risky. Firms will face fines of $19,000 per day if they provide a service before enrolling. Scale that across multiple practitioners and matters, and the numbers become unmanageable without automation.

Professional sentiment: Ready to comply, unsure how

A recent InfoTrack-hosted AML webinar with Grant Thornton's Neil Jeans highlighted a sentiment echoed across the sector; practitioners want to comply but feel overwhelmed by the how.

Common questions included:

"Will tech platforms handle the heavy lifting?"
"How do we get started with risk assessments?"
"Is this going to derail our client workflows?"

Neil's response was clear: you likely already do many of the required things informally, but now you need to codify, monitor, and prove it. And that means embedding technology into every touchpoint of your compliance process.

What infotrack is building: Compliance as code

At InfoTrack, we're not retrofitting old tools to meet new rules. We're engineering end-to-end, embedded AML/CTF workflows designed specifically for legal, property, accounting and corporate professionals.

Already live in our stack:

• Integrated VOI + AML onboarding tools
• Sanctions & PEP screening embedded
• UBO tracing via ASIC integration
• Financial risk & bankruptcy checks from a single interface
• Risk monitoring

These aren't just compliance tools. They're productivity tools that reduce risk while enhancing operational efficiency, all without burdening the client experience.

Advocacy through innovation: Defending a competitive tech ecosystem

Tech isn't just about tooling, it's about philosophy. We're urging regulators to maintain a technology-neutral framework, so no single platform becomes the monopoly compliance provider. Embedding due diligence checks too late in the transaction lifecycle risks:

• Operational bottlenecks at settlement
• Security vulnerabilities due to rushed decisions
• Reduced innovation from locked-in vendor relationships

Competition drives innovation, and innovation enables compliance. That's the InfoTrack ethos.

Start now, start smart

The Tranche 2 runway is short, and the compliance load is heavy – but with the right technology partner, it's manageable, even transformative. Your platform needs to do more than just comply. It needs to scale with you, flex to your workflows, and adapt as the regime matures.

At InfoTrack, we're here not just to support the transition, but to futureproof your compliance.

→ Access our complimentary AML/CTF training here
→ Watch the Introduction to AML/CTF webinar here