logo image
LoginGet Started

FAQs

AUSTRAC

Who is AUSTRAC?

AUSTRAC (Australian Transaction Reports and Analysis Centre) is Australia’s financial intelligence unit and the AML/CTF regulator. AUSTRAC monitors financial transactions to prevent, detect, and respond to criminal abuse of the financial system. Visit https://www.austrac.gov.au to learn more.

When do we need to enrol with AUSTRAC?

AUSTRAC enrolment for Tranche 2 entities opens on 31 March 2026. Businesses providing designated services with a geographical link to Australia must enrol before their AML/CTF obligations begin on 1 July 2026. Enrolments must be completed by 29 July 2026.

Is enrolment a one-off or annual process?

Enrolment is generally a one-off process completed when your business first becomes a reporting entity. However, you must keep your enrolment details up to date if your business structure, designated service, or key personnel changes.

Is NextGen AML an AUSTRAC-approved compliance solution?

AUSTRAC does not “approve” compliance software providers. However, NextGen AML is built to align with AUSTRAC’s guidance and AML/CTF obligations, with regular updates applied and integrated as regulations change, so you can stay compliant with confidence.

What information do I need to provide when enrolling?

You must provide:

  • Your business and services details
  • Earnings over the past 12 months (if your business earns $100,000,000 or more)
  • Some personal details

NextGen AML can guide you through the enrolment process. Contact us urgently


AML/CTF Basics

What is anti-money laundering (AML)?

AML stands for Anti-Money Laundering. It refers to measures that prevent criminal groups from using financial transactions to launder money. Money laundering is illegal and involves “cleaning” cash or funds derived from criminal activity by buying and selling legitimate assets, often using cash.

What is Counter-Terrorism Financing (CTF)?

Counter-Terrorism Financing (CTF) refers to measures that organisations take to prevent terrorist groups from using property or financial transactions to fund terrorist activities.

How does money laundering occur through real estate?

Criminals use large sums of illicit money to buy legitimate assets such as property, then hold or resell them to make the money appear legitimate. They often use shell companies, trusts, offshore entities, or third-party ownership to hide the true owner. All-cash purchases are also common because they bypass bank scrutiny and make detection more difficult.

Do sole operators or small businesses need an AML/CTF compliance program?

Yes. Every professional under Tranche 2 obligations must comply with the new requirements. An industry-built AML compliance program like NextGen AML makes compliance simple, whether you’re a national brand or a one-person business.

Do the AML/CTF requirements apply to brokers?

Yes. Mortgage brokers are required to comply with the Tranche 2 Anti Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms in Australia.

How much will AML/CTF compliance cost?

We know cost matters, especially for small businesses. That’s why NextGen AML is built to be affordable and scalable. The Attorney-General’s Department’s Impact Analysis estimates Tranche 2 costs might be around $6000 – $35000 annually. To understand our pricing please visit plans and pricing


Tranche 2

What are Tranche 2 regulations?
Tranche 2 regulations are new AML/CTF compliance requirements that apply to “gatekeeper” professions, including real estate agents, buyers’ agents, mortgage brokers, lawyers, conveyancers, and property developers. At a high level, these professionals must:
 

  • Register with AUSTRAC by enrolling before 1 July 2026
  • Develop, maintain, and implement an AML/CTF compliance program
  • Conduct customer due diligence to verify identity and business nature
  • Report suspicious matters and transactions
  • Maintain records for 7 years
What is the difference between Tranche 1 and Tranche 2?
Tranche 1 and Tranche 2 refer to different stages of Australia’s AML/CTF reforms:
 

  • Tranche 1 (2006): Required financial institutions, banks, and casinos to monitor financial transactions to prevent criminal activity
  • Tranche 2: Expands the reforms to gatekeeper professions (real estate, law, conveyancing, brokers) referred to as Designated Non-Financial Businesses and Professions (DNFBPs) for the first time.
What are the key dates for AML/CTF Tranche 2?
  • First consultations opened: 11 December 2024
  • New rules and framework released: 29 August 2025
  • Enrolment opens: 31 March 2026
  • Obligations commence: 1 July 2026
  • All Tranche 2 entities must enrol and setup their Compliance Program by 29 July,2026
What happens if I don’t comply with Tranche 2?
If your business ignores Tranche 2 obligations once they are in force, you could face regulatory action from AUSTRAC. Non-compliance may lead to fines, investigations, or loss of client trust. The good news is that preparing early gives you control and peace of mind.
Where can I learn more about Tranche 2 AML/CTF?

Visit AUSTRAC’s official website for updates or contact the NextGen AML team to discuss your specific situation and next steps. We help you navigate what’s coming with clarity and confidence. Our support team handles ongoing updates, keeping compliance simple for your business.


Solution as a Service

What should I look for in an AML solution?
Your AML/CTF compliance solution should be:

  • Simple and efficient for your team
  • Easy to use while protecting client relationships
  • From a trusted tech provider
  • Fast and accurate in checks
  • Designed to keep your business moving

NextGen AML is a reliable, all-in-one solution built to meet all your Tranche 2 compliance requirements.

What are the benefits of using a local Australian AML solution over international platforms?

A local Australian AML solution offers several key advantages:

     

  • Lower risk of cross-border data privacy and compliance issues
  • Built specifically for AUSTRAC’s regulatory requirements, reporting formats, and deadlines
  • Automatically updated with AML/CTF law changes, including Tranche 2 expansions and sector-specific rules
  • Australian customer support teams familiar with local regulatory expectations
  • Direct integration with AUSTRAC Online for compliant reporting
  • Faster response times and training resources aligned with Australian compliance standards
How do I find the best AML software solution for small service providers in Australia?
Choose anti-money laundering software that’s simple, affordable, and built specifically for small-to-medium teams in Australia. NextGen AML offers ready-to-use programs, streamlined workflows, ID verification tools fully aligned with AUSTRAC’s AML/CTF requirements. For Small providers we have plans with a low volume of minimum 5 monthly checks. You can upgrade your plan as you scale your business.
How does NextGen AML software integrate with my existing client onboarding process?
NextGen AML software integrates seamlessly with client onboarding workflows by embedding customer identification (KYC) and due diligence checks directly into the onboarding process. This ensures that all customers are verified before receiving designated services, using document verification, electronic identity verification and risk assessments.
How does Nextgen AML compliance solutions support audit readiness and record-keeping?
Nextgen AML compliance solutions centralise and securely store all required records, including customer identification (KYC), transaction data, AML program documentation and reports submitted to AUSTRAC. These systems maintain detailed audit trails and enable easy retrieval of records for the mandatory seven-year retention period. This ensures you are always prepared for AUSTRAC audits or investigations, demonstrating transparent and verifiable compliance with AML/CTF laws.
Is AML software equipped for all AUSTRAC obligations like SMRs and TTRs?
Yes. Modern AML software supports all key AUSTRAC reporting obligations, including Suspicious Matter Reports (SMRs) and Threshold Transaction Reports (TTRs). It helps detect suspicious activity and transactions that meet reporting thresholds, automates report generation, and ensures your timely submission through AUSTRAC’s secure portal.
What if the regulations change?
NextGen AML continuously monitors all AUSTRAC updates and automatically updates your compliance program. When requirements change, your program is updated automatically. You will always stay aligned with current regulations, with tools and templates that evolve alongside any updates. This is part of the ongoing support we provide.
What if I have no prior compliance experience?
You don’t need to be an expert, that’s our job. Our software is built for people who are experts in their field, not AML compliance. Whether you work in real estate or accounting, we guide you through every requirement with step-by-step tools, clear instructions, and full support. We ensure end to end compliance, so that you can fulfil your obligations with confidence.
Does KYB include UBO checks? What do you charge?

KYB covers ABN/ACN registry data, directors, shareholders, corporate structure, and entity screening. UBO identification is part of structure analysis.

To extract UBOs we need to conduct ASIC checks. Each ASIC check is nominally priced at $16.50.


Technical Questions

Do you support multifactor authentication?
Yes! Security is at the heart of what we do, so we have multiple options for providing a secure sign-in experience. MFA is available for all users, with a variety of factors available for use.
How do I submit a security vulnerability or other security issues?
Please email support@nextgenaml.com.au for all notifications of vulnerabilities or other security issues.
How do I onboard to NextGen AML?
NextGen AML onboarding will be available from 31st March 2026, when AUSTRAC registrations open. The onboarding process is simple and efficient, with support available throughout. Once you have selected your subscription plan, the platform is intuitive and will guide you through the process. Visit our to assess what is most suitable for your business.


Real Estate

Do real estate agents need to comply with AML/CTF laws?
Yes. Starting 1st July 2026, real estate agents handling property transactions must meet AML/CTF obligations. This includes performing identity checks on buyers and sellers, completing risk assessments, and maintaining proper records. Under AUSTRAC’s Tranche 2 expansion, real estate is now classified as a high-risk sector requiring compliance.
What are the AML/CTF obligations for real estate agents?
Real estate agents involved in property sales and purchases must:

  • Develop an AML/CTF program
  • Conduct customer due diligence
  • Identify beneficial owners
  • Understand the purpose of transactions
  • Keep detailed records
  • Report suspicious behaviour when necessary

These obligations apply to both residential and commercial property dealings.

What kinds of transactions are covered under the real estate AML rules?
AML obligations apply whenever you assist a client with buying, selling, or transferring real estate. This covers acting as an agent, facilitating settlement, or managing funds. Even direct sales by developers may trigger compliance requirements under Tranche 2. Visit to understand which of those you provide.
Is digital verification required for real estate AML compliance?
Digital verification isn’t mandatory, but it’s strongly recommended. You are required to verify each client’s identity before providing services. Digital verification makes this process faster, reduces manual errors, and ensures your checks meet AUSTRAC standards, particularly valuable for remote clients or agencies without in-house compliance staff. Not only that all the checks are stored and are audit ready on the NextGen AML platform.
Is AML software necessary for small real estate offices?
Yes. NextGen AML software simplifies the entire compliance process, from client verification to risk management and AUSTRAC reporting. For small and medium agencies without dedicated compliance staff, a solution like ours helps you meet all requirements without added complexity or legal costs.
What are the AML/CTF obligations for mortgage brokers?
Mortgage brokers arranging finance for property transactions must:

     

  • Enrol with AUSTRAC
  • Verify customer identity
  • Understand the source of funds
  • Assess client and transaction risk
  • Report suspicious matters to AUSTRAC if required
  • Train staff on an ongoing basis
  • Conduct an independent evaluation of their AML/CTF program every three years
Are property managers also obliged under AML/CTF laws?

If your property management services include handling rental funds, bond payments, or other transactions, you may fall under AUSTRAC’s designated services. Review your service offerings carefully and consult AUSTRAC’s upcoming guidance to see if your business is captured. Visit to check if your business provides any designated service. If unsure contact us 


Legal and Conveyancing Services

Does Tranche 2 apply to every practicing lawyer?
No, but it applies to any firm handling transactional work. Practices focusing on property, commercial law, or wealth structuring are heavily impacted. If your daily work intersects with client accounts, corporate structures, or asset transfers, you must comply. today for a definitive assessment of your firm’s exposure.
Do the new AML rules override legal professional privilege?
No, legal professional privilege is strictly preserved. The legislation is designed to respect core legal principles and confidentiality. You are never required to report on legitimate legal advice. Obligations to AUSTRAC are only triggered by transactional or operational activities that sit outside protected legal counsel.
What are the staff training requirements for legal practices?
Ongoing, structured training is a mandatory compliance pillar. Affected lawyers and conveyancers must provide regular education to ensure staff can confidently spot red flags and execute internal reporting procedures. NextGen AML provides tailored training modules built specifically for legal professionals to streamline this requirement.
Must conveyancers complete identity checks for all buyers and sellers?
Yes, client verification is mandatory for every transaction. Under the new framework, conveyancers must complete comprehensive Customer Due Diligence (CDD) prior to engagement. This process verifies identities, analyses risk levels, and cross-references global sanctions list to effectively safeguard your practice from financial crime.
What is the AML/CTF obligations for conveyancers?
Conveyancers must:
 

  • Develop an AML/CTF program
  • Implement customer due diligence for all clients
  • Verify client identities
  • Understand who is ultimately behind the transaction
  • Assess risk
  • Keep accurate records
  • Monitor for unusual activity
  • Report suspicious activity to AUSTRAC
  • Train staff regularly

These steps help ensure property transactions are legitimate and traceable.


Accounting

Why are accounting firms being regulated now?
Accountants serve as professional “gatekeepers” to the financial system. Criminals often try to exploit accounting expertise to set up complex structures, hide wealth, or move illicit funds. By regulating the profession, AUSTRAC aims to make it safer for accountants to carry on their business without fear of abuse from offenders.
Will all accountants need to comply with Tranche 2?
Not necessarily, only those who are providing designated services, such as forming companies or trusts, managing client funds or facilitating financial transactions. However, most advisory and tax practices are expected to fall under these rules. Talk with us to confirm if your practice is impacted..
Do bookkeepers and BAS agents need to comply with AML/CTF obligations?
Bookkeepers and BAS agents must comply if they provide any “designated services” under the AUSTRAC framework. This includes tasks like managing client funds, helping structure business entities, or handling high-level financial arrangements. Because even minor exposure to these tasks triggers the legislation, you should review your current service offerings immediately to ensure compliance.
When should accounting practices start preparing for AML compliance?
Right now. Building a compliant AML/CTF program takes time, typically between three to six months. Your practice must design robust documentation, train staff, and implement new identity verification tools. Starting your transition early ensures your team is fully prepared, and your workflows are seamless well before regulatory enforcement begins. If you are not prepared, do not worry. NextGen AML has simplified the process, and you can be compliant within a few days.
Which accounting services trigger these compliance checks?
Not every routine task requires an AML check. The rules specifically apply to designated services,  which include:

 

  • Creating entities: Setting up companies, trusts, partnerships, or SMSFs.
  • Managing funds: Holding or moving client cash, bank accounts, or securities.
  • Buying or selling: Managing the purchase or sale of businesses or real estate.
  • Providing registered offices: Acting as a nominee shareholder or director for a business.
Is my personal information and data safe with you?
Yes, absolutely. We handle all client verification data with the highest level of security. Your information is stored strictly in line with the Privacy Act 1988 and our rigid internal data protection policies. We only use this data to meet our legal obligations under the AUSTRAC framework.

Ready to get compliant before it becomes urgent?

Book a personalised demo and we will walk you through the complete compliance workflow, calibrated to your industry, your team, and your risk profile
Get Compliant