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Tranche 2 Compliance For Practices Navigating Both Legal and Financial Risk

Lawyers and conveyancers facilitate Australia’s highest-value transactions property settlements, trust formations, client fund management. These are exactly the channels money laundering targets. From 1st July 2026, firms providing designated legal and conveyancing services must meet full AUSTRAC AML/CTF obligations and the standard expected of legal professionals is high.

AUSTRAC enrolment is open now
Get Compliant

What the law requires and how we handle it

Compliance Requirements

NextGen AML Solution

Enrol with AUSTRAC

Register as a reporting entity for designated legal or conveyancing services before 1 July 2026.
  • Confirms which of your firm's services are designated
  • Enrolment guidance from our advisory team
  • Compliance specialists with legal sector experience

Build Your AML/CTF Program

Document a risk-based AML/CTF program covering client risk, CDD procedures, internal controls, training, and reporting obligations.
  • Legal and conveyancing-specific AML program builder
  • Risk assessment by transaction value & complexity
  • Program designed and documented by compliance specialists

Verify Clients & Entities

Verify client identity and beneficial ownership before providing designated services.
  • KYC for individual clients at matter opening
  • KYB with full ownership mapping
  • Integrated PEP, sanctions & watchlist screening

Monitor & Keep Records

Monitor ongoing client relationships and maintain records of all CDD, decisions, and AUSTRAC reporting for seven years.
  • Continuous monitoring across active matter records
  • Dedicated auditor access for reviews & assurance
  • Exportable 7-year records for regulator review

Suspicious Matter Reporting

Report suspicious instructions, transaction structures, or client behaviours to AUSTRAC promptly.
  • Suspicious activity alerts flagged inside each matter record
  • AUSTRAC-ready SMR drafts for Compliance Officer sign-off
  • Full submission history recorded in-case

Train Your Team

All fee earners and support staff must be trained on AML obligations, red flags, and escalation procedures.
  • Role-based AML training for legal teams
  • Legal-specific training scenarios
  • Staff training records & certificates

Why Legal Firms Choose NextGen AML

Legal and conveyancing firms have different compliance needs to real estate agencies or accounting practices. Matter-based workflows, trust account oversight, reliance arrangements and the separation between fee earner and compliance officer functions require a platform that understands legal operations not just AML theory.

Matter-Based Case Workflow

AML checks aligned to how legal matters flow.
Cases are opened at matter creation and tracked through the full engagement lifecycle from initial CDD to matter close and seven-year record retention. No separate system needed.

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Auditor Access Without Disruption

External auditors get full access without touching live matters. The dedicated Auditor role provides complete read-only and export access to case records, decision logs and audit trails without interfering with fee earner workflows or active matters.

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Reliance Arrangements Supported

Share CDD records across reporting entities with full evidence. Where your firm relies on checks completed by a real estate agency or another reporting entity, NextGen AML supports the reliance arrangement with shareable records and complete evidence trails.

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Trust Account Monitoring

Ongoing oversight of trust account activity built in. Monitoring workflows flag unusual patterns in trust account activity keeping your firm ahead of suspicious activity rather than reacting after settlement.

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Included In Every Plan

Everything you need to get started,
in one place.

No matter which plan you choose, NextGen AML gives you the core tools to move forward with confidence. From onboarding and customer screening to risk assessment, continuous monitoring, reporting and dedicated support. It is designed to help businesses get ready without adding unnecessary complexity.
View Plans & Pricing Book a Demo

Legal FAQs

Common Questions From Legal Firms.

Still Not Sure?

Does Tranche 2 apply to all legal services or only specific ones?
Only designated services are captured including property conveyancing, company and trust formation, managing client money, acting as a director or trustee and providing nominee services. Not all legal work is in scope.
How do reliance arrangements work in practice?
Under Tranche 2, one reporting entity can rely on CDD completed by another. For example, a conveyancer can rely on identity checks completed by a real estate agency. NextGen AML supports this with shareable case records and full evidence logs preserved for both parties.
Can our auditors access records without disrupting the team?
The dedicated Auditor role in NextGen AML provides full read-only and export access to case records, decision logs and audit trails without touching or interfering with any active matter workflows.
How do we handle high-risk client instructions?
High-risk matters route to your Compliance Officer with all evidence already organised. EDD notes, final decisions and suspicious matter considerations are recorded defensibly inside the case with a complete decision trail.
Does NextGen AML help with trust account monitoring?

Yes. Ongoing monitoring workflows in NextGen AML flag unusual patterns in client fund activity and trigger re-screening where risk changes supporting your trust account oversight obligations.