AML Compliance for Australia’s Accounting Sector
#Tranche 2 Reforms, #AML/CTF Amendment Act 2024
June 24, 2025
3 Minutes
Australia's accounting sector is undergoing a big legislative upheaval. Under the AML/CTF Amendment Act 2024, accountants will soon be obliged to meet strict anti-money laundering requirements. Professionals in this area must understand their new responsibilities and create a comprehensive, risk-based AML program.
Financial crime costs Australia an estimated~A$60 billion annually, over $12 billion tied to drug-related laundering, with additional harms like human trafficking and cybercrime. Extending AML responsibilities to Tranche 2 entities, including accountants, helps plug intelligence gaps and bolster enforcement across serious organised crime operations.
According to AUSTRAC's 2024 National Risk Assessment, accounting professionals have a ‘high and stable vulnerability’ to money laundering and are frequently identified as facilitators in the layering phase of laundering schemes.
Because of its importance in arranging complex financial transactions and legal entities, the profession is classified as a ‘gatekeeper’ industry, alongside real estate brokers, lawyers, and trust service providers.
Using accountants in criminal groups results in higher sums and 2.5x more crime-related harm compared to groups without such facilitators.
The AML/CTF Amendment Act, passed in November 2024, requires accountants who provide certain specified services to register as reporting entities under the AML/CTF framework. These measures align Australia with worldwide standards and prevent potential FATF grey listing by 2026, which could decrease foreign investment by up to ~3% of GDP.
Accountants must enlist with AUSTRAC by March 31, 2026, and complete full compliance by July 1, 2026.
Accountants who perform any of the following identified services must follow AML/CTF rules:
Criminals exploit accounting-related services via:
Accountants designated as reporting entities must implement:
MemberCheck supports large enterprises in navigating the complexities of Tranche 2compliance. Our advanced screening and verification solutions are designed to adapt to the unique requirements of each organisation, enabling them to effectively identify risks, meet AML/CTF obligations, and stay ahead of regulatory demands. By providing secure, reliable, and easy-to-integrate tools, MemberCheck empowers businesses to strengthen their compliance frameworks and focus on growth while ensuring they remain protected in an evolving regulatory landscape.
The Tranche 2 Reforms are a set of proposed legislative reforms aiming at broadening the scope of Australia's Anti-Money Laundering and Counter-Terrorism Financing laws to include more businesses and professions.
The Tranche 2 Reforms will affect real estate agents, precious metals dealers, lawyers, trust and company service providers, and accountants.
The Tranche 2 Reforms are required to align with global standards established by the Financial Action Task Force (FATF), which recommends that countries regulate DNFBPs within their AML/CTF frameworks and to strengthen Australia's ability to detect, prevent, and combat money laundering and terrorism financing activities.
Regulated entities must conduct detailed risk assessments, develop and implement strong AML/CTF programs, ensure that employees receive adequate training on AML/CTF obligations and the entity's compliance program, establish systems for reporting suspicious activities and keeping records in accordance with regulatory requirements.
The Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Amendment Bill 2024, passed by the Australian Parliament on 29 November 2024, marks a major milestone in Australia’s efforts to combat financial crime.
This legislative reform strengthens the AML/CTF Act 2006 by:
Australia’s real estate industry is facing a significant regulatory shift. Under the upcoming Tranche 2...
The AML Amendment Bill 2024, passed by the Australian Parliament on 29 November 2024, marks a...