How to Prepare for Tranche 2 AML Reforms (Without the Overwhelm)

Australia’s property sector is currently working through one of its biggest regulatory changes in decades. Lawyers, conveyancers and real estate agents will soon be included under the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime, commonly referred to as “Tranche 2 reforms.”

What are the AML Tranche 2 reforms in Australia?

Tranche 2 reforms are an extension of the Tranche 1 AML/CTF laws that currently apply to banks and financial institutions. From 1 July 2026, real estate, legal & conveyancing professionals will need to comply with the new laws for all property transactions that they service.

This means they’ll be expected to:

• Verify client identities before completing transactions
• Conduct enhanced customer due diligence on certain customers

• Create and maintain an AML/ CTF compliance program

• Keep accurate, auditable records of those checks
• Report suspicious activity to AUSTRAC

Businesses will also have to implement an AML program and ensure staff training is conducted.

How the industry is responding

For many, this feels daunting. At various recent industry events, I’ve had many conversations with those impacted and, interestingly, many of the real estate agents that I spoke with either weren’t aware of the changes or shared the common concern;

‍“When am I going to have time to do this amongst everything else I do?”

For conveyancers and other legal practitioners, I've heard similar concerns but with a different theme;

‍“I don’t know where to start.”

If either of those statements sound like you, you’re not alone and the good news is, preparing doesn’t have to be overly complicated, nor does the task need to be too time intensive. (Hint: That’s if you partner with the best in the business though. Keep reading).

Why these reforms matter

It’s easy to see AML as just more red tape to your daily job. But there’s more at stake. By complying with the new Tranche 2 reforms, you’re also:

• Protecting your clients. Thorough checks reduce the risk of fraud and criminal activity.
• Protecting your reputation. Compliance failures can cause reputational harm well beyond financial penalties.
• Protecting our industry. Did you know that Australia is one of the last western countries to implement these protections? Property is a known target for money laundering, especially in Australia. This is about safeguarding the sector and our country.

How to prepare for AML Tranche 2 (without the overwhelm)

The main date in everyone’s calendar is 1 July 2026, when the Tranche 2 obligations officially come into effect. From here on, ongoing monitoring and reporting become part of business as usual. While this date is key, what’s most important is what you’re doing now in the lead up.

If you’re asking, “But what do I do now?”, here’s where I’d suggest starting:

1. Understand the basics. Get clear on what Tranche 2 covers and what it means for your role. Reading this article was a great choice start!
2. Review your current client process. Look at where identity verification and record-keeping could naturally fit in.
3. Don’t wait for the deadline to find the right tools. The earlier you prepare, the smoother the transition will be. Manual checks and filing cabinets won’t cut it. You’ll need a digital solution that’s reliable, secure and built for property professionals. That’s where Livesign has your back.

Livesign’s role in AML Tranche 2

Livesign has been supporting property professionals with our award-winning, secure digital verification solution for years. Now we’re building a comprehensive AML solution tailored to supporting real estate agents and legal practitioners in their upcoming obligations.

Launching soon, our AML platform will help users:

• Conduct AML/CTF checks quickly and securely
• Keep records in one place, ready for audit
• Integrate compliance into normal workflows without disrupting clients... and more.

We're helping our customers stay ahead of the reforms with an education and training series. If you're not a Livesign customer but you're interested in learning more, you can here.

The AML/CTF Tranche 2 reforms will change how property professionals work, but they don’t need to be overwhelming. Every real estate agent, conveyancer and lawyer in Australia is facing the same challenge, and those who prepare early will find the transition smoother.

At Livesign, our goal is to help our customers navigate AML compliance with confidence, so you can focus on what you do best: helping your clients.