AML obligations for law firms are now live. Get your firm compliant today.
Tranche 2 is here, and it applies to you. Our AML/CTF platform is purpose-built for lawyers and legal practitioners, backed by a local Aussie team who actually know the legal sector.
- Step by step guidance
- Fully AUSTRAC-aligned solution
- No compliance experience required
Lawyers and legal practitioners are now subject to Tranche 2
If your firm assists clients with equity or debt financing, manages client assets, or sets up trusts and companies, Tranche 2 already applies to you. It's been in effect since 1 July 2026 — not a date on the horizon, but the rules you're operating under right now.
Haven't enrolled with AUSTRAC or built a program yet? You're already carrying that risk. Getting compliant doesn't have to be complicated — we're here to make it simple.
Where does your firm actually sit under Tranche 2?
Not every part of legal practice is captured — but plenty of common services are. You're likely in scope if your firm:
- Buys or sells real estate on behalf of a client
- Manages client money, accounts, securities or other assets
- Manages bank, savings or securities accounts on a client's behalf
- Helps set up, operate or manage companies, trusts, or other legal structures
- Acts as, or arranges someone to act as, a director, secretary, trustee, or nominee shareholder
Not sure where you land? Get in touch and we'll walk through it together.
Building a program that actually holds up
Seven things AUSTRAC will actually check for:
- A documented risk assessment covering your clients, services and jurisdictions
- Customer due diligence, including enhanced checks for higher-risk clients
- Ongoing transaction monitoring
- Clear escalation and reporting procedures
- Staff training records
- A nominated AML/CTF compliance officer
- Record-keeping that meets the seven-year retention rule
easyAML's legal-specific program builder uses guided, AUSTRAC-aligned risk assessments and a program that stays current as rules change.
Tranche 2 obligations
for lawyers
Enrol with AUSTRAC
Enrolment for newly regulated businesses closed on 29 July 2026. If your firm hasn't enrolled yet, this needs to happen immediately.
- Step by step guidance
- Local support whenever you need it
Implement an AML/CTF Program
Develop and maintain a written, risk-based compliance program tailored to your business.
- Legal-specific AML/CTF program builder
- Guided, AUSTRAC-aligned risk assessment setup
- Complete program - policies, procedures, and controls
- Your program is kept up to date and compliant
Verify your customers
Conduct checks to verify the identity of every client before you act for them, and screen for risk factors like PEPs and sanctions.
- Easy biometric identity verification (Powered by Scantek)
- PEPs, sanctions & criminal watchlists screening
- ABN/ACN lookup and beneficial owner checks
- Complete KYC, KYB and KYE checks
Ongoing due diligence
Regularly monitor client activity and reassess their risk. Records need to be maintained for at least seven years.
- Continuous transaction monitoring
- Customer behaviour analysis
- Automated risk assessments
Reporting suspicious matters
Report activity that seems unusual or suspicious to AUSTRAC.
- Suspicious activity alerts
- One click AUSTRAC-ready reports
- Secure 7 year record storage compliance
Staff Training
Make sure your team understands red flags and reporting steps.
- On-demand compliance training modules
- Quizzes, walkthroughs and downloadable resources
- Local Australian-based support whenever you need it
Non-compliance with AML/CTF obligations can lead to serious consequences, including fines, legal action and public enforcement by AUSTRAC. Even unintentional breaches can result in reputational damage or the loss of key referral relationships. Lawyers and legal practitioners who ignore Tranche 2 are already exposed to that risk, now that Tranche 2 is in effect.
Integrations
No, you don't have to rebuild your tech stack
easyAML fits alongside the management tools legal firms already run — Actionstep, Clio, Affinity and Xero XPM — so getting compliant with Tranche 2 doesn't mean adding another disconnected system.
The shortcut
Or don't run the checks at all — let us do it
AML on Demand puts our team on your files: we collect and verify client documents, run sanctions and PEP screening, and prepare your compliance file. You keep control of approvals and AUSTRAC sign-off, at $50 per outsourced transaction.
FAQs: AML compliance for lawyers and legal practitioners
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Are all lawyers affected by Tranche 2?
Not necessarily. However, most property, commercial and private client firms will fall within scope. If your services intersect with client money, structures or transactions, you’re likely affected. If you’re unsure if your business falls under this umbrella, have a chat with us.
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Will I have to report privileged information under AML rules?
No. Legal professional privilege remains protected. Tranche 2 reforms do not override your duty to client confidentiality. You’ll only need to report activity that falls outside the scope of legal advice, for example, suspicious transactions involving funds or property. The legislation respects core legal principles while still meeting AUSTRAC’s objectives.
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When were legal professionals captured under Tranche 2?
Since 1 July 2026, legal professionals have been subject to new AML/CTF compliance obligations under Tranche 2. If your firm hasn't enrolled with AUSTRAC or put a program in place, you're already exposed to regulatory risk.
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What happens if I don’t comply with AML requirements?
AUSTRAC enforces civil fines, pursues criminal charges, and can publicly disclose your firm’s name. Even minor oversights, like failing to report suspicious activity, can result in enforcement action. Failing to comply damages your professional reputation and puts clients at greater risk.
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How can I ensure the staff at my legal practice are AML-compliant?
If you’re a lawyer subject to Tranche 2, you must provide regular training to your team. This helps them spot red flags, follow internal compliance procedures and understand reporting obligations. easyAML’s software offers tailored training modules designed specifically to support legal professionals, keeping your staff confident and compliant.
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What kind of reporting will my firm need to do under Tranche 2?
Under Tranche 2, your firm will be required to submit Suspicious Matter Reports (SMRs) whenever you identify unusual or suspicious activity. Detailed records must be maintained for at least seven years. You might also need to file Threshold Transaction Reports (TTRs) and International Funds Transfer Instructions (IFTIs) depending on your transactions to ensure full compliance.
The cost
Doing this manually costs more than you'd think
Managing AML/CTF without a dedicated digital solution costs businesses an average of $23,250 a year, according to the Attorney-General's Department — admin time, software, consultants, training and legal drafting.
easyAML starts from $179 a month plus GST, with every plan including your full program, risk assessments, screening, training and Australian support.
The risk
Ignore Tranche 2 and AUSTRAC will notice
AUSTRAC can hand out civil penalties, infringement notices, enforceable undertakings and, in serious cases, criminal investigation. Even an honest mistake — a late suspicious matter report — can trigger action.
And it isn't just the fine. Non-compliance hits your firm's reputation and the referral relationships you rely on, which is usually the bigger cost.