The Role of RegTech in Supporting Tranche 2 Compliance
#Tranche 2, #AML Compliance, #Australia
Dec 20, 2024
3 Minutes
As Tranche 2 brings a broader range of professions under the AML/CTF regime, the need for agile, effective, and scalable compliance solutions has never been more urgent. For legal, accounting, and real estate businesses, adapting to these new regulatory expectations means more than just process changes - it requires the right technology.
This is where RegTech (Regulatory Technology) comes in. Purpose-built to assist organisations in navigating complex regulatory environments, RegTech solutions are now essential tools for managing AML compliance under Tranche 2.
RegTech refers to the use of technology to enhance the efficiency and effectiveness of compliance with regulations. It automates tasks that were traditionally manual, repetitive, and prone to human error.
Core features of RegTech platforms include:
Key Benefits:
The Tranche 2 reforms introduce heightened expectations around:
RegTech platforms streamline each of these components by:
With deadlines for Tranche 2 implementation approaching, early adoptersof RegTech solutions are already benefitting from:
Implementing RegTech now ensures that you can test, tailor, and optimise your system before regulatory enforcement ramps up.
The expansion of AML/CTF obligations under Tranche 2 is not a temporary shift – it’s a long-term change in how compliance is expected to be managed. Relying on spreadsheets or outdated systems is no longer viable.
RegTech offers a future-proof solution that enables businesses to navigate this shift with confidence, accuracy, and control.
MemberCheck is at the forefront of RegTech innovation, offering end-to-end tools for screening, monitoring, and risk-based decision-making. Whether you’re building your first compliance framework or scaling an existing one, our platform is designed to support your Tranche 2 journey every step of the way.
Early preparation isn’t just smart - it’s strategic. Get ahead now with MemberCheck.
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.
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.
Businesses must implement enhanced KYC procedures to verify customer identity, assess risk, and ensure ongoing monitoring, especially for high-risk clients.
Yes. RegTech solutions can automate customer due diligence, screening, and reporting, helping businesses comply efficiently and reduce human error.
Yes. Businesses will need to ensure employees are trained in AML/CTF obligations, internal procedures, and in identification and reporting of suspicious activity.
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