Tranche 2 Essentials: Regulatory Update

LESSON 01 OF 03

Four details worth getting exactly right.

From 1 July 2026, AML/CTF obligations apply to certain services provided by tranche 2 businesses. This update fixes four high-risk details in the existing course.

01

Enrolment

Use the source’s 28-day timing.

02

Governance

Separate approval, oversight and day-to-day compliance.

03

CDD

Distinguish initial and ongoing checks.

04

Records

Retain the seven-year rule’s qualifier.

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Scope note
This factsheet is a summary. It does not include all obligations or cover all scenarios.

LESSON 02 OF 03

Timing and ownership

Use precise language where a small wording change can create a large compliance misunderstanding.

01

ENROLMENT

Within 28 days of providing a designated service

For new designated services beginning on 1 July 2026, AUSTRAC says this will typically be 29 July 2026. Keep enrolment details up to date within 14 days of a change.

Source evidence · p.1

02

GOVERNANCE

Three responsibilities, one clear map

Senior managementapproves the program

Governing bodyoversees the program

Compliance officeroversees day-to-day compliance

These roles can all be held by the same person.

Source evidence · p.2

LESSON 03 OF 03

Apply the update

SCENARIO

A newly regulated professional-services firm begins providing a designated service on 1 July 2026. Its manager is updating the course and asks you to verify three statements.

1 Which enrolment wording best reflects the source? Enrol before the first designated service. Enrol within 28 days of providing a designated service. Enrol at the end of the financial year.

2 Who approves the AML/CTF program? Senior management. The compliance officer only. AUSTRAC.

3 Which record-retention statement is source-grounded? All records must always be retained for exactly seven years. Records should be retained for five years. For most obligations, records must be retained for seven years.