What is “Tranche 2”?

25 May 2026

“Tranche 2” is the next stage of Australia’s anti money laundering and counter terrorism financing (AML/CTF) laws.

From 1 July 2026, law firms that provide certain types of services, called designated services, must comply with stricter rules designed to prevent financial crime.

Why is this happening?

Criminals sometimes misuse professional services, including legal services, to hide money or move funds illegally. The new rules bring Australia in line with international standards and help protect clients, businesses, and the broader community.

Will these rules affect every legal matter?

No. Only certain types of work fall under the new rules, typically where a lawyer helps set up companies or trusts, handles client money, deals with property transactions, or assists with business or asset transfers. If your matter is affected, we will let you know.

What information might you need from me?

We may need to ask for:

• Proof of identity
• Details of who owns or controls a company or trust (beneficial ownership information)
• Information about the purpose of a transaction

These steps are known as Customer Due Diligence (CDD) and are required by law.

Will my information remain confidential?

Yes. We still protect legal professional privilege and client confidentiality.

However, the law requires us to gather specific information for AML/CTF compliance, and in some cases report suspicious matters to AUSTRAC. We only report where legally required.

Does this mean the firm thinks I’m doing something wrong?

Not at all. These checks apply to many thousands of businesses across Australia, lawyers, accountants, real estate professionals, and more. It’s simply part of meeting national legal standards.

Will this slow down my matter?

We aim to keep any delays to a minimum. Providing the requested information promptly helps us avoid interruptions.

What happens if I don’t want to provide the information?

Under the new law, if we cannot complete our required checks, we may not be able to act, or continue to act for you.

When do these changes start?

The reforms begin 1 July 2026 for legal practices. We are preparing now to make the transition smooth for our clients.