Managing Ongoing Due Diligence After Tranche 2: Why Automation is Key

Introduction

With Tranche 2 of Australia’s AML/CTF reforms taking shape, businesses - especially legal, accounting, and real estate professionals - must rethink how they manage ongoing due diligence. Meeting your AML obligations once isn’t enough; monitoring risk continuously is now essential. That’s where automation comes in.

Why Ongoing Due Diligence Matters

After the initial onboarding, customer risk doesn’t just disappear. People and entities change over time and staying compliant means staying alert.

Here’s what ongoing due diligence typically involves:

Monitoring transactions for suspicious activity
Checking for changes in ownership, location, or behaviour
Screening against updated sanctions and PEP lists
Regularly updating risk assessments

Doing all this manually? It’s resource-heavy and prone to errors.

The Power of Automation

Automation ensures that your monitoring is:

Continuous – Real-time alerts for any red flags
Accurate – Reduces false positives and human error
Scalable – No matter how many clients you manage
Efficient – Frees your team to focus on actual risk and not on admin work

Stay Compliant Without the Stress

Whether you're a law firm or a small accounting practice, investing in automated tools helps you:

Stay compliant with Tranche 2 requirements
Reduce operational costs
Build client trust by showing a proactive approach to risk management

Bottom line? Tranche 2 isn't just about ticking a box - it's about future-proofing your business. And automation is the smartest way forward.

Frequently Asked Questions (FAQs)

What is Tranche 2 and why is it being introduced?

Tranche 2 refers to the proposed expansion of Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime to include ‘designated non-financial businesses and professions’ (DNFBPs) such as lawyers, accountants, and real estate agents. It aims to close regulatory gaps and align Australia with global FATF standards.

Who will be affected by Tranche 2 reforms?

Legal practitioners, accountants, real estate agents, precious metals and stones dealers, Trust and Company Service Providers, and other DNFBPs will fall under the scope of AML/CTF regulations once Tranche 2 is implemented.

How does Tranche 2 affect customer onboarding processes?

Businesses must implement enhanced KYC procedures to verify customer identity, assess risk, and ensure ongoing monitoring, especially for high-risk clients.

Can technology help meet Tranche 2 requirements?

Yes. RegTech solutions can automate customer due diligence, screening, and reporting, helping businesses comply efficiently and reduce human error.

Will training be required for staff under Tranche 2?

Yes. Businesses will need to ensure employees are trained in AML/CTF obligations, internal procedures, and in identification and reporting of suspicious activity.

Managing Ongoing Due Diligence After Tranche 2: Why Automation is Key

#Tranche 2 Compliance, #AML in Australia, #Customer Due Diligence