For businesses recently brought within Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime, the focus is now shifting from preparation to compliance. Tranche 2 obligations commenced on 1 July 2026, and businesses providing a designated service must enrol with AUSTRAC within 28 days of first providing it. For most businesses already operating on commencement, that deadline was 29 July 2026.
If you are unsure whether your business provides designated services, or you should have enrolled but have not, now is the time to understand your position.
Tranche 2 extends the regime to services typically provided by lawyers, accountants, conveyancers, real estate agents, trust and company service providers, and dealers in precious metals and precious stones. Property developers and retirement village operators can also be captured.
If you operate in one of these sectors, treat that as a prompt to act, not a conclusion. The regime is activity-based. What matters is whether you provide a designated service, not what industry you are in. Two retirement villages in the same town can reach different conclusions depending on how they are structured and what they actually do. If what you do is captured, you are a reporting entity and you must enrol.
Whatever the outcome, record how you reached it: which services you provide, which designated services you considered, and why each does or does not apply. Reassess whenever your services change, particularly if you begin providing a new designated service, as a fresh 28-day enrolment period may then apply. Reassess whenever your services change, because the 28-day clock starts afresh when you begin providing a new designated service
The Attorney-General’s Department’s Reforming Australia’s Anti-Money Laundering and Counter-Terrorism Financing Regime: Impact Analysis estimated that approximately 89,557 businesses would be brought into the regime.
AUSTRAC’s published enrolment figures show 40,630 enrolments as of 17 September 2026. That is roughly 45% of the businesses the reforms were expected to bring into the regime.
Some of that gap will reflect businesses that are not in fact providing designated services. Some will not. For any business that has not enrolled, the important question is whether it is among those required to comply
On 28 August 2026, AUSTRAC announced that it had begun issuing notices under section 167 of the AML/CTF Act to businesses that appear to be providing designated services but have not enrolled.
This is an important development for businesses affected by Tranche 2. The regulatory focus is no longer limited to education and outreach. Businesses providing designated services should be prepared to demonstrate that they understand their obligations and have taken appropriate steps to comply.
A section 167 notice can require a person to provide information or produce documents relevant to compliance with, or enforcement of, the AML/CTF Act. AUSTRAC may issue a notice to any person it reasonably believes holds such information or documents.
The scope of such a notice can be broad. Material provided to AUSTRAC may assist it in determining whether a business is providing designated services and whether the business is meeting its AML/CTF obligations.
Businesses should not assume that a section 167 notice will be confined to the particular issue identified in the notice. The information and documents provided in response may identify broader compliance issues. This may lead to further enquiries, investigation or regulatory action.
For that reason, a section 167 notice should not be treated as a routine information request. Businesses should carefully consider what the notice requires, the information that must be provided and the broader regulatory context before responding.
Failing to comply with a section 167 notice can carry both criminal and civil consequences. A failure to comply with a requirement of the notice may constitute an offence, and the requirement to comply is separately enforceable as a civil penalty provision.
Businesses that have not received a notice should not take that as a sign they are in the clear. It is better to consider your position now than to wait for AUSTRAC to make contact. In practical terms, this means:
With AUSTRAC now issuing section 167 notices to businesses that appear to be providing designated services without having enrolled, businesses should not assume there is still time to defer assessing their position.
If you are unsure whether your business provides designated services, or you have received a section 167 notice, Jackson McDonald can help you understand your obligations and consider an appropriate response.
The key question is not simply whether AUSTRAC has contacted you. It is whether your business is ready if AUSTRAC does.
References
Attorney-General’s Department (Cth), Reforming Australia’s Anti-Money Laundering and Counter-Terrorism Financing Regime: Impact Analysis (Impact Analysis, August 2024) 162.
Australian Transaction Reports and Analysis Centre (AUSTRAC), ‘Enrol with Us Overview’ (Web Page, last updated 18 September 2026).
This article was written by Bertrand Redy, Lawyer, and Elizabeth Tylich, Partner, Corporate Commerical.