Tranche 2 Legislation
The new AML/CTF laws represent a big step forward in combating financial crime and terrorism. While these new obligations will pose some challenges to professionals like lawyers, accountants, real estate agents, and conveyancers, they also provide an opportunity for them to enhance their integrity, safeguard their industries from illicit activities, and strengthen Australia’s financial system. The reforms also aim to reduce the complexity and regulatory burden of AML and CTF, ensure Australia’s AML/CTF regime is fit for purpose, and insulate Australian businesses against exploitation by organised crime.
What is Tranche 2?
Facing a worldwide tidal wave of financial crime, the Australian government passed the Anti-Money Laundering and Counter-Terrorism Financing Act in 2006. The legislation addressed high-risk sectors like banks and other financial institutions, cash-carrying services, bullion dealers, casinos, remittance service providers, and stored value card providers.
Implications of Australia’s Tranche 2 AML/CTF Regime for Accountants
Accountants will also experience significant changes under Tranche 2 because their services are often used by people involved in financial activities that could be connected to money laundering. With the new obligations in place, accountants will have to carefully review their clients' activities, especially if there are any unusual or large transactions. This might mean they will need more risk awareness training and better processes and software to help them comply.