Prepare for AML/CTF Tranche 2 with InfoTrack’s Compliance Centre

Legal and conveyancing firms across Australia are facing a pivotal moment: initiating AML/CTF Tranche 2. These reforms mark one of the most significant regulatory shifts in the property sector in decades, requiring practitioners to take a more active role in preventing financial crime.

The changing role of practitioners

From 1 July 2026, lawyers and conveyancers will move beyond facilitation and become formal “gatekeepers” of the financial system. Tranche 2 obligations include:

• Enroling as a ‘Reporting Entity’ with AUSTRAC
• Onboarding your firm & developing an AML/CTF Program
• Onboarding clients with verification of identity and other checks
• Reporting to AUSTRAC
• Keeping records

This represents more than an administrative update, it redefines professional responsibility, aligning practitioners with broader financial system risk management.

Addressing vulnerabilities in property transactions

The Australian property market has long been identified as vulnerable to money laundering. High-value transactions, opaque ownership structures, and historically limited oversight have made real estate an attractive channel for illicit funds.

Criminal capital behaves differently from legitimate demand: it prioritises concealment over commercial rationale and is often less price sensitive. This can distort market dynamics, contributing to inflated property values and reduced affordability. Tranche 2 aims to close these gaps, providing practitioners with the authority and tools to protect the integrity of the market.

Benefits for the market and practitioners

While immediate price shifts may not be apparent, Tranche 2 introduces structural benefits:

• Balanced pricing dynamics: Removes artificial demand from non-legitimate buyers.
• Greater transparency: Builds trust across parties and the broader property industry.
• Alignment with global standards: Brings Australia closer to international AML/CTF expectations.
• Defensible position for practitioners: Strengthens protection against inadvertently facilitating financial crime.

Turning compliance into opportunity

Tranche 2 also represents a chance to modernise practice and process. Firms that embed structured workflows and leverage technology can:

• Streamline compliance without adding significant administrative burden
• Provide a consistent, transparent client experience
• Reduce regulatory and reputational risk

To help firms navigate this change, InfoTrack’s Compliance Centre is now live. Demonstrated to over 7,000 practitioners across 26 locations nationwide throughout March, the platform allows firms to establish and operationalise a compliant framework immediately, ensuring readiness ahead of AUSTRAC deadlines.

Developed in collaboration with Grant Thornton Australia, the InfoTrack Compliance Centre is built specifically for Australian practitioners. Based on AUSTRAC Starter Kits, the platform digitises AML/CTF programs, providing a streamlined, audit-ready framework.

Thousands of firms are already leveraging the Compliance Centre, benefiting from features including:

• All-inclusive management: Maintain your AML/CTF program entirely within one platform.
• Australia-focused compliance: Fully aligned with AUSTRAC regulations, onshore data storage, and enterprise-grade security.
• Fair pricing: No subscription fees or lock-in contracts. ; costs apply only to digital client onboarding.
• Seamless integration: Pre-populates data from your Practice Management System for efficiency.
• Familiar workflows: Uses onboarding and verification processes your team already knows, with training modules, reporting, and audit trail capabilities.

Admin users can set up their firm’s Compliance Centre today. Complimentary staff due diligence is available for your team until 31 May, providing an ideal opportunity to ensure readiness.

Preparing for the future

The introduction of Tranche 2 signals a shift towards a transparent, accountable, and resilient property market. Lawyers and conveyancers are no longer simply facilitators, they are key players in safeguarding market integrity.

Firms that act early and adopt proactive compliance measures will not only ensure regulatory readiness but also enhance operational efficiency and client confidence. By approaching these changes as an opportunity to strengthen both process and practice, practitioners can contribute to a more stable and trustworthy property market for all participants.

For more information about your AML/CTF obligations or the all-inclusive Compliance Centre, register for InfoTrack’s AML/CTF in-depth webinar series. Learn more.